City businessman Hamis Kiggundu has admitted that his team was responsible for the demolition of structures at St. Balikuddembe Market, saying the move was part of ongoing developments along the Nakivubo Channel corridor.
The admission follows public outcry after a section of the busy market, commonly known as Owino, was mysteriously demolished overnight, leaving many traders shocked and demanding answers about who authorized the operation.
Kiggundu explained that the demolition targeted lock-ups that were located within the drainage corridor, noting that the action was intended to support ongoing infrastructure and environmental improvements in the area.
According to the tycoon, 48 traders who were affected by the demolition were compensated with Shs3 million each before the structures were brought down.
He said the compensation was meant to support the traders as redevelopment efforts continue in the area, which has long faced challenges related to congestion and poor drainage.
The incident had earlier sparked controversy after police arrested operators of two machines believed to have been used in the demolition while investigations were launched to establish who ordered the operation.
St. Balikuddembe Market, one of the largest trading hubs in Kampala, supports thousands of traders and remains a key center for informal trade in the country.
Authorities and traders are expected to continue discussions over the future of the affected area as redevelopment plans for the Nakivubo drainage corridor progress.