Nabbanja’s CN Sugar Commissioning Plan Raises Questions Over Pending Regulatory Approval

By Swift Reporter

Prime Minister Robinah Nabbanja’s planned commissioning of the CN Sugar Limited factory in Namayingo on September 4, 2026, has raised fresh questions over the company’s licensing status and compliance with an earlier High Court order halting its operations.

In a letter dated August 13, 2026, Nabbanja informed the Minister of Trade, Industry and Cooperatives that she would travel to Namayingo to commission the factory in accordance with a directive from President Yoweri Museveni.

The Prime Minister also directed the minister to ensure that all necessary processes are completed ahead of her visit.

However, the planned commissioning comes as CN Sugar’s fresh application for a sugar-mill licence is still undergoing consideration. The application is expected to come before the Sugar Industry Stakeholders Council on August 21, 2026—just days after the September 4 commissioning date was communicated.

The timing has consequently raised questions about whether the statutory licensing process will be completed before the factory is commissioned.

The dispute surrounding CN Sugar dates back to a High Court ruling delivered on January 20, 2025, by Justice Douglas Singiza Karekona in a case filed by the Uganda Sugar Manufacturers Association (USMA).

In the judgment, the court found that permissions previously issued to CN Sugar by the Ministry of Trade, Industry and Cooperatives were unlawful because the ministry did not have the statutory authority to license sugar mills.

The court held that, under the Sugar Act, the Uganda Sugar Board was responsible for licensing sugar mills.

The court consequently cancelled the purported licences and letters of no objection issued to CN Sugar and directed the company to stop its sugar and jaggery mill operations until it obtained a valid licence from the authorised regulatory body.

The ruling also addressed the location of the factory, with the court finding that CN Sugar and another company, Shakti Sugar, had been established within the restricted 25-kilometre radius of existing sugar and jaggery mills, contrary to the government’s sugar policy.

The policy was designed to regulate the establishment of sugar factories and protect sustainable sugarcane-growing zones by preventing excessive competition for the available cane supply.

The court’s decision therefore placed licensing at the centre of CN Sugar’s ability to lawfully operate.

CN Sugar has since returned to the regulatory process with a fresh application for a sugar-mill licence.

The application is expected to be assessed under the prevailing legal and regulatory framework, but the fact that an application has been submitted does not, in itself, amount to a licence.

Questions Over The September 4 Commissioning

Nabbanja’s letter does not state that the Prime Minister has granted CN Sugar a licence. Instead, it raises questions about the sequence of events, particularly because the company’s application is yet to be determined by the relevant regulatory body.

If the Sugar Industry Stakeholders Council approves the application and CN meets all other legal requirements, the planned commissioning could proceed.

However, if the application is rejected or additional requirements are imposed, questions would arise over whether the September 4 ceremony would be postponed.

There are also outstanding questions concerning the 25-kilometre zoning issue identified in the earlier High Court ruling and whether subsequent developments have altered the circumstances that led to the court’s decision.

The High Court order remains significant unless it has subsequently been stayed, varied or overturned through a lawful judicial process.

Balancing Investment And Regulation

The controversy comes against the backdrop of government’s broader efforts to promote industrialisation, investment and job creation.

A sugar factory in Namayingo could potentially contribute to employment, local economic activity, markets for farmers and government revenue.

However, investment promotion must operate alongside statutory regulation and court orders.

The central issue, therefore, is whether CN Sugar will have secured the necessary approvals before the planned commissioning date and whether all concerns previously raised by the High Court have been addressed.

The government may also need to clarify the company’s current licensing status, the outcome of any subsequent court proceedings and how the concerns regarding the location of the factory have been resolved.

For now, the September 4 commissioning remains dependent on the regulatory process and the legal status of CN Sugar.

The company could ultimately secure approval to operate, but the legal and regulatory process will determine whether the factory can lawfully open its doors.

[pdf-embedder url=”https://www.spyuganda.com/wp-content/uploads/2026/08/Uganda-Sugar-Manufacturers-Association-USMA-Limited-v-Attorney-General-3-Others-2025-UGHCCD-4-20-January-2025.pdf” title=”Uganda Sugar Manufacturers Association (USMA) Limited v Attorney General 3 Others 2025 UGHCCD 4 (20 January 2025)”]