Museveni summons NRM MPs for showdown on controversial coffee bill
by MUHAMMAD KAKEMBO & GEOFFREY SERUGO · The ObserverPresident Yoweri Kaguta Museveni has summoned members of the National Resistance Movement (NRM) parliamentary caucus to his residence in Kisozi on Friday to discuss the contentious National Coffee Amendment Bill.
This follows a parliamentary session last week in which opposition MPs mounted a determined effort to block the bill’s passage. Critics of the bill, including opposition MPs, accused Speaker Anita Among of colluding with the executive to advance legislation unpopular in coffee-producing regions.
Following intense debate, the speaker was compelled to conduct a roll call vote after the leader of the opposition, Joel Ssenyonyi, challenged her decision to advance the bill through voice voting. Although MPs in favour of the bill ultimately succeeded in securing its second reading, the session adjourned without final approval.
According to sources familiar with President Museveni’s position, he was displeased by parliament’s resistance to dissolve certain agencies, particularly the Uganda Coffee Development Authority (UCDA).
“If he allows UCDA to remain, it means other agencies, like UNRA, will also want to remain,” an anonymous MP commented.
The MP suggested that Museveni is unlikely to relent, predicting that Parliament will ultimately be compelled to pass the bill. Ahead of the heated plenary session, members of the Buganda parliamentary caucus met privately with speaker Among to discuss their concerns about the bill.
One MP present at the meeting, who spoke anonymously, indicated that the Speaker seemed under “immense pressure” to ensure the bill’s passage, allegedly in response to demands from the executive.
INFLUENCE OF 2026 ELECTION POLITICS IN COFFEE AMENDMENT DEBATE
During the meeting, President Museveni reportedly called Speaker Among to underscore his rationale for dissolving UCDA, arguing that the agency’s dissolution would align with the broader goal of rationalising government agencies. Museveni also spoke directly to Muwanga Kivumbi, the Butambala MP and chairperson of the Buganda caucus, questioning why MPs opposed the move given the provision for a three-year transition period.
In response, Kivumbi suggested a longer transition, proposing five years, or a provision specifying when the bill’s operationalisation would begin. Museveni, who expressed openness to the idea of a transition period, instructed those opposing the bill to work out specific details with state minister for Agriculture Bright Rwamirama.
This directive sets the stage for further negotiations on the bill’s terms ahead of Friday’s caucus meeting, as stakeholders seek a compromise that balances executive priorities with MPs’ concerns. As the 2026 elections approach, the National Coffee Amendment Bill has emerged as a politically charged issue, especially among MPs from Buganda, where coffee is a major economic asset.
Privately, some MPs who oppose the bill do not believe President Yoweri Museveni has harmful intentions for Uganda’s coffee sector, but they recognise that coffee holds significant sway among constituents in Buganda, a region that forms the largest opposition block in parliament.
“There is no government agency that Museveni wants to control which he hasn’t already influenced,” said one MP.
“To suggest he’s aiming to take our coffee is misleading. But this issue is now politically charged, and we’re prepared to maximise it.”
The MP noted that the coffee debate has provided a rallying point for an opposition fragmented by recent internal conflicts, restoring unity across parties.
“It’s like the land bill – people responded strongly to the idea of government taking their land. The same is true for coffee.”
The opposition’s skepticism towards Museveni’s position on the bill is partly rooted in recent government moves to consolidate coffee market control. In February 2022, minister of Finance Matia Kasaija signed a Shs 284 trillion agreement with Italian investor Enrica Pinetti, head of Uganda Vinci Coffee Company Limited (UVCC).
The deal granted UVCC exclusive rights to purchase, process and export Uganda’s coffee to Europe and the Middle East, along with significant tax exemptions, including relief from income tax, excise duty and mandatory National Social Security Fund (NSSF) contributions.
The contract’s terms drew backlash from stakeholders who argued that Uganda has capable domestic entrepreneurs who could fulfil UVCC’s intended role. Many in the industry also questioned Pinetti’s lack of experience in coffee, an omission that fuelled criticism and ultimately led parliament to recommend terminating the agreement, citing constitutional violations and conflicts with tax laws.
As debate over the coffee bill intensifies, the opposition is leveraging public sentiment to galvanise support, drawing parallels between the coffee issue and previous contentious land legislation. Museveni’s stance on consolidating the coffee market, however well-intentioned, continues to be scrutinised within the broader political landscape, with implications likely to shape the lead up to 2026.
UCDA’S POPULARITY AMONG MPS AMID DEBATE ON AGENCY MERGER
MPs privately admit to a beneficial relationship with the agency that goes beyond policy concerns. According to several MPs interviewed, UCDA has been instrumental in providing free coffee seedlings for MPs to distribute to their constituents—a gesture that has boosted MPs’ political standing in coffee-producing regions, especially in Buganda.
In recent years, coffee has become increasingly profitable in these areas, prompting a surge in production and intensifying support for UCDA among lawmakers. The relationship between UCDA and some MPs also extends to business dealings, with certain legislators supplying coffee seedlings to the agency.
“It’s easier to influence an agency than a ministry,” one MP noted, explaining why many MPs are resistant to UCDA’s dissolution. The agency’s flexible approach to working with MPs has fostered cooperation, and as a result, some law-makers are unwilling to see it folded into a larger ministry.
Recently, The Observer reported that parliament delayed the merger of agencies such as the National Information Technology Authority (NITA-U), amid allegations that MPs accepted small bribes of up to Shs 500,000. When asked whether similar incentives have influenced the fight to preserve UCDA, four MPs responded that, if such exchanges have taken place, they are not yet aware.
In September, the ministry of Agriculture, Animal Industry and Fisheries (MAAIF) introduced the National Coffee (Amendment) Bill, 2024. The bill seeks to streamline and rationalise UCDA’s functions, integrating its operations into the ministry to reduce the high administrative costs associated with maintaining multiple agencies.
According to the government, these costs strain the national treasury and divert resources from effective service delivery. The proposed changes aim to delineate the ministry’s mandates and reduce redundancy in functions across government departments.
COMMITTEE OBSERVATIONS
In a recent report presented by Linda Agnes Auma, chairperson of the Committee on Agriculture, Animal Industry and Fisheries, members of parliament emphasised the pivotal role played by the Uganda Coffee Development Authority (UCDA) in ensuring coffee quality and compliance with export contracts and international food safety standards.
The UCDA’s regulatory oversight spans the entire value chain, from planting materials to production, harvest, post-harvest practices and processing, all designed to meet global standards.
“The committee observes that the coffee sector is a vital export earner that requires independent regulation to satisfy export market demands. The civil service mode of operation cannot efficiently undertake and deliver this mandate,” Auma stated during the report presentation.
Despite its findings, the committee recommended rationalising the UCDA, allowing for a three-year transition period to enable the ministry of Agriculture, Animal Industry and Fisheries (MAAIF) to build the capacity needed to assume UCDA’s responsibilities.
The report highlights the coffee sector’s economic importance, with over 12 million people employed along the value chain. Uganda ranks as one of Africa’s top coffee exporters, with earnings increasing from $883.3 million (Shs 3.2 trillion) to $952.24 million (Shs 3.4 trillion) between November 2021 and October 2022.
Uganda also saw record exports of 6.26 million 60-kg bags in the 2021/2022 period, up from 5.83 million bags in 2020/2021. The country has set an ambitious target to produce 20 million 60-kg bags by 2030.
Additionally, UCDA contributes to Uganda’s national treasury, collecting non-tax revenue from exports and other sources, amounting to Shs 82.2 billion in the 2023/2024 financial year. The report underscores the economic implications of any potential structural changes to UCDA, given its role in boosting the coffee sector’s growth and revenue.
MPS REACT
The proposed rationalisation of the Uganda Coffee Development Authority (UCDA) has stirred strong reactions among MPs, with many arguing the agency’s importance to Uganda’s economy warrants its continued independence. Muwanga Kivumbi, chairperson of the Buganda parliamentary caucus, expressed concerns, stating that certain government entities, particularly those critical to the economy, should remain independent.
“There are agencies like the Petroleum Authority, the Investment Authority, and the Uganda Revenue Authority that won’t be rationalised because of their economic impact. As opposition, we support rationalisation for a leaner, more efficient government, but not at the cost of key sectors,” Kivumbi said.
He noted that globally, coffee-producing countries typically manage their coffee sectors through specialised agencies rather than ministries, citing Kenya and Ethiopia, where coffee exports declined following rationalisation before the policy was reversed. Kivumbi argued that the ministry of Agriculture, Animal Industry and Fisheries (MAAIF) lacks the capacity to handle UCDA’s specialised mandate, pointing out that coffee generated Shs 5 trillion for Uganda’s economy last year.
“Oil won’t bring in as much revenue as coffee. This is a crop that directly supports our economy, and dissolving UCDA introduces uncertainty,” he stated.
Instead of merging the agency, he suggested creating a salary review commission to address wage concerns. Busiro East MP Medard Lubega Sseggona also voiced opposition, highlighting coffee’s significant contribution to Uganda’s agricultural exports.
“This bill is discriminatory and damaging. It shows bad faith, and we must resist it,” he said.
MP Ibrahim Ssemujju Nganda of Kira municipality argued that semi-autonomous institutions, such as UCDA, benefit from having specialised boards and greater agility in decision-making, as they avoid the bureaucratic delays often associated with ministries.
“These agencies were created to address the inefficiency within ministries. In a ministry, ministers with little to no technical expertise lead complex sectors, while agencies are overseen by experts in the field,” Ssemujju explained.
In contrast, President Yoweri Museveni defended the bill, stating that UCDA has not demonstrated exceptional results warranting its continued independence. Museveni contended that Operation Wealth Creation, overseen by his brother Gen Salim Saleh, had achieved more in supporting coffee and other sectors than UCDA and other development organisations combined.
He also accused opponents of misleading the public, emphasising that it was the NRM government that had revived Uganda’s coffee sector.
“The negative critics should stop deceiving people. If there are issues, like with tea, we’ll sit with stakeholders and find solutions through rational approaches,” Museveni stated.
The debate underscores broader concerns about the role of specialised agencies in Uganda’s economic strategy, as parliament considers balancing cost-saving reforms with the need for effective oversight in key sectors.