Ham Kiggundu turns Kampala’s troubled Nakivubo Channel into a commercial hub
By redeveloping one of Kampala’s most notorious drainage corridors, businessman Hamis Kiggundu is betting that urban infrastructure can become an engine of commerce.
By Frank Mugisha
For decades, Nakivubo Channel was associated with foul smells, accumulated garbage, flooding and insecurity in the heart of Kampala’s central business district. Today, the corridor is undergoing a dramatic transformation, with commercial arcades rising above a redesigned drainage system under a multibillion-shilling investment led by businessman Hamis Kiggundu.
The development represents an attempt to combine drainage infrastructure with commercial property, turning previously underutilised urban space into retail premises in one of Uganda’s busiest trading districts.
According to The Observer, the redevelopment masterplan was valued at approximately Shs180 billion ($50 million), with plans to improve drainage capacity, cover sections of the channel and introduce commercial facilities and pedestrian infrastructure.
From drainage problem to business opportunity
The project targets a longstanding urban challenge. Nakivubo Channel carries stormwater from a large portion of Kampala’s developed central area towards Lake Victoria. Waste accumulation and restricted water flow have contributed to flooding that disrupts businesses and damages property.
Kiggundu’s approach is to rehabilitate the channel while recovering the investment through commercial developments constructed above it.
In August 2025, President Yoweri Museveni endorsed the proposal, directing the government to support its implementation after the channel was cleaned and strengthened. The arrangement would allow commercial properties to generate returns on the private investment.
The engineering component includes widening the channel from approximately six metres to 12 metres, according to Kiggundu’s account to legislators during an inspection of the works in September 2025. The project also envisages improved waste management and infrastructure designed to facilitate maintenance.
New space for Kampala’s traders
The commercial dimension has already become visible. In May 2026, Business Times reported the opening of Nakivubo Arcades, a development valued at $48 million, presenting the project as a new retail destination in downtown Kampala.
The new premises offer space for businesses seeking access to the city’s established trading networks, potentially supporting employment in retail, transport, logistics and related services.
However, the redevelopment has also generated controversy over planning approvals, environmental safeguards and the effects on traders displaced during construction. In July 2026, Parliament’s Committee on Physical Infrastructure questioned Kampala Capital City Authority officials about post-construction approval of Ham Shopping Centre on the channel.
The project’s long-term success will therefore depend on more than commercial occupancy. Its drainage system must perform effectively during heavy rainfall, while regulatory compliance and the interests of affected communities remain important.
For Kampala, Nakivubo offers a test of whether private investment can solve an urban infrastructure problem while creating commercially productive space. For Kiggundu, the challenge is ensuring that the transformation delivers both a viable business asset and a functioning drainage corridor.
