- Industries lead to pollution of air, water and land. Nile and Uganda breweries foristance dump their waste products into Lake Victoria killing thousands of fish and contaminating water supply for towns such as Kampala.
- The bakery and ceramics industries have cut down forests for bio-mass power. Also industrial expansions like in Namanve, Mbale and Tororo forests have been cleared.
- Industrial expansion has reclaimed the swamps in many parts of the country like in Nakawa, Ntinda and Kyambogo for Oscar and Spear Motors, Nalukolongo valley for Ssembule steel mills and this has caused environmental degradation.
- Industries have led to urbanization and RUM associated problems. RUM has decreased labour for agriculture in rural areas, un employment, street beggers, high crime, slums, prostitutions like in many parts of Kampala of Kisenyi, Katanga, Kivulu, etc.
- Many industries in Uganda are foreign owned leading to constant profit repatriation like century bottling company, uniliver Uganda limited, etc. this leads to under development of Uganda.