By KT Reporter
The government has commissioned the long-awaited rural electrification project for Kayonza Growers’ Tea Factory Limited, a move local leaders say will breathe life into Kanungu’s struggling tea sector and unlock long-delayed economic gains for more than 8,300 smallholder farmers.
Presiding over the commissioning on Tuesday, Dr. Ruth Nankabirwa, Minister of Energy and Mineral Development, said the government intervened after realising that the multi-billion–shilling farmers’ investment in Mpungu was at risk of stalling due to the high fuel costs of running a generator.
“Without electricity, your investment would stall, jobs would be delayed, and the anticipated economic returns would not be realised,” the minister said. “By powering Mpungu Tea Factory, the Government has catalysed a value chain that will transform lives for generations.” The project, worth UGX 883 million, included 1.31km of medium-voltage line, 1.71km of low-voltage line, and the installation of three transformers. Nankabirwa praised residents of Mpungu and Kanungu for providing land for the power lines without compensation.
“I salute you for this sacrifice,” she said. Mpungu Sub-County LC3 Chairperson Robert Ndyomugyenyi said the electrification had arrived at a critical time when farmers were grappling with collapsed tea prices and disrupted factory operations.
“To find a place like this connected to the national grid is remarkable,” he said. “Honourable Minister, please extend our sincere appreciation to the President. This sub-county and the entire district will give him 100% support in the next election.”
However, Ndyomugyenyi appealed for electricity to reach the three communities that surrendered land for the transmission line but remain unconnected. “These villages urgently need power,” he said. “Even our magnificent community ecotourism site, where we shall host you for lunch, is still in darkness. Once these places receive electricity, more development will follow.”
Kanungu LC5 Chairperson Sam Kajojo delivered an emotional account of the district’s tea journey, from President Museveni’s 2008 intervention that boosted production, to the sector’s current collapse. He said government support, worth UGX 36 billion in tea seedlings, had pushed farmer numbers from 1,200 to over 12,000 and increased annual Greenleaf earnings from UGX 10 billion to UGX 54 billion.
But over the last two years, tea prices plummeted from UGX 5,550 per kilo to just UGX 200, leaving farmers unable to even pay pickers. “Many have abandoned their gardens; some have turned into forests,” Kajojo said. “Our farmers need support, especially fertilisers to improve quality. Rwanda earns $3.0 per kilo, Kenya earns $2.8, but Uganda earns only $0.8. Our sub-region is suffering.”
He urged the minister to remind the President of the UGX 75 billion in unpaid arrears owed to farmers for tea seedlings since 2016/17. “Some farmers lost property; others lost their lives; others fled due to pressure from banks,” he said. “Kanungu is an NRM stronghold, 90% of us support the President, but our livelihoods depend on tea. We need help.” As factories and processing plants expand, Kanungu leaders warned that the district’s persistent power fluctuations could undermine industrialisation. “Sometimes the electricity that arrives cannot even run factory motors,” Kajojo said, calling for Kanungu’s connection to the high-voltage line from Rwanda and operationalisation of the promised Ishasha island mode.
The district has five tea factories, 57 coffee factories, and several rice-processing facilities—all dependent on stable power. Grace Kyomugisha, Board Chairperson of Kayonza Growers’ Tea Factory, said the Mpungu Tea Factory was conceived in 2017 due to overwhelming leaf production. Construction began in 2020 after securing a loan from Uganda Development Bank.
She said the factory was meant to begin operations immediately after commissioning in July 2023, but was held back by a lack of power. “The delay has resulted in accumulation of interest payments,” Kyomugisha noted. “We request the government to support us with working capital, as promised by the President on 19 August 2025.” She said operational costs remain high due to load-shedding and dim power: “Running a generator is six times more expensive than electricity.”
Dr. Nankabirwa said the electrification aligns with the Energy Policy 2023, National Development Plan IV and the broader Tenfold Growth Agenda. “This is not just about lighting a factory,” she said. “It is about jobs for youth and women, higher incomes for 8,300 farmers, and unlocking Uganda’s export potential.” She encouraged households to apply for free connections under the Electricity Access Scale-Up Project, saying Kanungu still has room to grow its electricity footprint.
With the factory now powered, Mpungu and the wider Kanungu region hope the new electricity supply will stabilise operations, revive farmer incomes, and spark renewed confidence in the battered tea sector. However, without addressing unstable power, unpaid arrears, falling global prices, and expanding access to rural villages, the tea-dependent district remains on fragile ground.
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