CN Sugar Licence Row! Museveni Distances Himself From PM Nabbanja On CN Sugar Licence

President Yoweri Museveni has reportedly clarified his position on the controversial licensing of CN Sugar Limited in Namayingo District, amid questions over the role of Prime Minister Robinah Nabbanja in pushing the factory’s licensing process.

The controversy follows Nabbanja’s intervention in the licensing process and her earlier plan to commission the CN Sugar factory before the company’s fresh application had received a final regulatory decision. The Prime Minister had written to the Trade Ministry saying she was acting on a presidential directive to follow up on the status of the licence.

However, the available documentation did not state that Museveni had personally ordered the relevant authorities to issue CN Sugar with an operating licence. Nabbanja’s August 13 letter instead referred to a presidential directive for her to follow up on the licensing status and asked officials to ensure that the required processes were completed.

The issue became more complicated after reports that the President had recently met one of the stakeholders involved in the matter. According to the account provided, Museveni was reportedly concerned that his request to know the status of the factory had been interpreted as an instruction to grant the company a licence.

The President was subsequently quoted as saying that the company should follow the law, particularly if the matter had already been addressed through court and the relevant regulatory framework. This account should be distinguished from the earlier reports about his directive for Nabbanja to follow up on the licensing status.

The CN Sugar dispute has a significant legal background. In January 2025, the High Court in Kampala ruled that permissions issued by the Ministry of Trade to CN Sugar and other sugar enterprises were unlawful, finding that the required statutory licensing framework had not been followed.

The court also addressed the location of the factory, finding that the establishment of CN Sugar and Shakti Sugar mills within the prohibited distance of existing mills was contrary to government sugar-sector policy. CN Sugar subsequently pursued a fresh licensing process under the evolving regulatory framework.

By March 2026, the Uganda Sugar Industry Stakeholders Council was reported to be the body considering CN Sugar’s fresh application, including findings from a verification exercise on the proposed factory and its ability to secure adequate raw materials.

The disagreement therefore centres on the difference between following up on a licence application and directing that a licence be issued. Nabbanja’s August letter showed that she had set September 4 as the date for commissioning and asked officials to complete the necessary processes, while reports at the time indicated that the application was still before the regulatory authorities.

The latest developments have placed renewed attention on the roles of the President, Prime Minister and statutory regulators in the CN Sugar matter. The key question now is whether the factory satisfies the applicable legal and regulatory requirements and what decision the competent authorities will make on its fresh application.