Igara Growers Tea Factory has secured a four-month reprieve from auction as the government prepares to intervene in its debt crisis, Deputy Speaker Thomas Tayebwa has said.
The agreement offers relief to tea farmers who risk losing a key buyer of their green leaf. Dfcu Bank had scheduled the sale for November 6, 2026, to recover an outstanding loan of about Shs5 billion.
Tayebwa announced the breakthrough after meeting bank representatives, factory officials and MPs from Greater Bushenyi and Tooro at Parliament on October 29, 2026. Henry Musasizi and Permanent Secretary and Secretary to the Treasury Ramathan Ggoobi also attended.
“I’m glad we have agreed on halting the auction of the factory for four months as the government finalizes efforts to intervene,” Tayebwa said.
The meeting examined the factory’s debts, possible tax relief and measures to restore normal operations.
Tayebwa did not disclose the value or form of the proposed intervention. His statement also gave no repayment terms for the four-month suspension.
Igara’s financial troubles extend beyond its bank loan. The factory has faced unpaid farmer deliveries, salary arrears, outstanding statutory obligations and management disputes. These problems contributed to its closure earlier this year.
Tayebwa said government support for struggling tea factories would come alongside audits and stronger governance structures to sustain their operations.
“The government recognizes the critical role tea plays in our economy, and we cannot allow our tea factories to collapse,” he said.
He added that fertilisers pledged by the government had been delivered.
The latest talks follow an earlier promise of wider relief for tea processors. On September 8, 2026, Tayebwa announced plans to write off more than Shs35 billion in tax arrears owed by tea factories. He also outlined a planned Shs212 billion investment in the sector, with access tied to sound management.
Uganda’s tea industry has struggled with weak prices and rising production costs. Lower export earnings have squeezed factories’ ability to pay farmers and meet operating expenses.
Tayebwa said participants also proposed visiting tea-growing communities in Greater Bushenyi to explain the government’s recovery measures and encourage farmers to resume green leaf supplies.
“To all tea farmers in Greater Bushenyi and across the country, remain hopeful. Government support is on the way,” he said.
