The Ministry of Trade has halted the operations of three Tobacco Companies in Bunyoro region.
The companies are Continental Tobacco Company Limited, NIMA Tobacco Company Limited and Tropical Tobacco Company limited.
They are accused of failing to pay farmers over sh2 Billion.
Meanwhile the ministry has issued operational licenses to four companies to transact business and they are; Alliance One Uganda Tobacco Company, Global Leaf Holdings, Meridian Tobacco Company and Uganda Tobacco Service.
Hoima leaders have welcomed the move.