Kanungu tea farmers dismiss claims of Shs14b payout extortion, defend 30% deduction

Over 280 tea nursery bed operators in Kanungu District have denied allegations that they were defrauded by their lawyers and association leadership. The farmers clarify that a 30 percent deduction from their recent Shs14.9 billion government payout was a voluntary contribution, not an illegal extortion scheme.

In a signed petition addressed to President Museveni, dated May 26, 2026, the farmers under the Kanungu Tea Nursery Bed Operators Association clarified that they received their full entitlements on their respective bank accounts. They noted that the 30 percent deduction was willingly remitted to cover legal fees, administrative expenses, and operational costs incurred during their multi-year legal battle with the government.

The statement, witnessed by the lead plaintiff, Mr. Frank Byaruhanga, was a direct response to an earlier petition dated November 12, 2025. In that petition, eight individual farmers accused the association’s leadership and legal counsel of executing unauthorized deductions from the farmers' compensation.

"On May 10, 2018, during our association’s general meeting held in Rukungiri District, it was unanimously agreed that members make a contribution of 30 percent of the money demanded from the government," the farmers' statement reads in part. "This was to meet legal fees, administrative costs of the lead plaintiffs, and the daily running of the association activities."

The dispute traces back to 2019 when the nursery bed operators sued the government for failing to pay Shs143 billion for tea seedlings supplied under a state-backed agricultural transformation initiative.

While Kanungu is one of southwestern Uganda’s primary tea-producing hubs, delays in government clearing of arrears have frequently sparked friction between local suppliers and the Ministry of Agriculture, Animal Industry and Fisheries.

Speaking on Saturday, Mr Byaruhanga, who also chairs the association, dismissed the fraud allegations as malicious and unauthorized fabrications that do not reflect the position of the wider membership.

"In 2019, we sued the government. After a long court battle, a consent judgment was reached in 2021 where the government committed to paying the money," Mr. Byaruhanga explained. "In the 2021/2022 financial year, the government paid only Shs39 billion. We returned to court for redress."

Mr Byaruhanga added that following a lengthy legal standoff, President Museveni intervened in 2025 and ordered the release of the remaining Shs112 billion, which the farmers are yet to receive.

"However, in December 2025, the government paid us Shs14.9 billion, which accumulated as a 10 percent interest on the principal amount. Following our 2018 agreement, each farmer voluntarily paid 30 percent of what they received to cater for our legal and administrative costs," he said.

The internal rift caught the attention of the State House Anti-Corruption Unit (SHACU) late last year after the breakaway faction of eight farmers petitioned the President, prompting detectives to launch an investigation into the management of the funds.

Mr Byaruhanga welcomed the ongoing probe, expressing confidence that the association would be cleared of any wrongdoing.

"I am happy that officials from the State House Anti-Corruption Unit have started investigations. So far, 310 out of the 313 legitimate members of our association have signed to confirm they voluntarily paid the 30 percent," Mr Byaruhanga said, adding that the members are eagerly awaiting the unit's final report.

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