Kabale District Council Greenlights Land Lease for Tembo Steels to Set Up Iron Ore Beneficiation Plant

KABALE, UGANDA — Kabale District Council has approved the lease of 19 acres of district land to Tembo Steels Uganda Limited for the establishment of an iron ore beneficiation plant in Kamuganguzi Sub-county.

The resolution was adopted unanimously during an extraordinary council sitting held at the Kabale District Rukiiko Hall on December 16, 2025, under the chairmanship of District Speaker Flavia Nyinakiiza Kanagizi. The motion to lease the land was tabled by Baker Turyamureeba, chairperson of the council’s Production, Natural Resources, Trade, Industry and Local Development Committee.

Strategic Move for Industrial Growth

Council members hailed the decision as a crucial step toward positioning Kabale as an emerging industrial hub in southwestern Uganda. Tembo Steels, described by local leaders as one of the country’s leading mining and steel companies, is expected to bring significant socio-economic benefits to the district through value addition in the mineral sector.

Next Steps and Legal Process

Following the council’s endorsement, the proposal will be forwarded to the Minister of Local Government and subsequently to Parliament for final approval, as stipulated in the law. Once confirmed, Kabale District will enter into a Memorandum of Understanding (MoU) with the company to formalize the partnership. The MoU will establish a framework for sustainable mineral development practices, environmental protection, and investment promotion.

Lease Terms and Community Benefits

Under the draft agreement, the land will be leased at UGX 500,000 per acre annually during the exploration period, which is anticipated to last up to four years. The terms will be renegotiated once full-scale operations begin.

Officials say Tembo Steels has also pledged to support the community by maintaining key access roads and implementing corporate social responsibility initiatives to benefit residents of Kamuganguzi and the broader Kabale District.

Voices from the Council

Turyamureeba emphasized that the decision aligns with the Local Government Act, which mandates councils to optimally utilize public assets to generate revenue and improve services for residents. Council members believe this investment will spur job creation, enhance infrastructure development, and strengthen industrial value addition in the region.

About Tembo Steels

Tembo Steels Uganda Limited is one of the country’s most diversified and integrated steel manufacturers, producing a wide range of steel products from locally sourced iron ore. The company operates major plants in Iganga and Lugazi and is central to Uganda’s efforts to substitute imports and grow domestic industrial capacity.

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