"We're getting bodies six feet to eight feet underground [nearly 2.5m] - making it very hard as the area is muddy and rocky," Lt Col Wilson Kabera - in charge of the recovery operation - told the BBC's Focus on Africa programme.
"We cannot get heavy earth-moving equipment to this point so we're basically using hand-held tools," he said.
Our reporter says continuing heavy rain is hampering the operation.
Whenever a shower starts, people flee the excavation scene fearing further landslides, he says.
Uganda's President Yoweri Museveni visited the area on Wednesday and said the mudslide was partly due to the loss of tree cover.
The region, about 275km (170 miles) north-east of the capital Kampala, often suffers from landslides but this is an unusually high death toll.
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