Soroti Fruit Factory posts Shs5.3Bn loss despite management overhaul – Audit

Soroti, Uganda: The Soroti Fruit Factory operates at a loss of Shs5.371 billion for the 2024/2025 Financial Year, deepening its financial troubles despite a recent management overhaul, the latest Auditor General’s report reveals.

The audit report released on December 31, 2025 by Auditor General Edward Akol shows that the factory’s losses widened from Shs4.391 billion recorded in the previous financial year. Over the past four years, the plant has averaged losses of about Shs5.5 billion annually, further expanding its accumulated deficit.

Commissioned on April 13, 2019 by President Yoweri Museveni, the factory was established to add value to citrus and mangoes harvested from more than eight million trees planted across the Teso Sub-region.

The planting campaign was rolled out under the National Agricultural Advisory Services (NAADS) in partnership with the National Agricultural Research Organisation (NARO), as part of government’s agro-industrialisation agenda.

But the audit report highlights persistent governance weaknesses at the factory.

Since January 2023, the company has not held an Annual General Meeting (AGM), has not filed company returns since 2017, and has not issued share certificates to shareholders — raising serious compliance concerns.

The report further indicates that the factory’s return on assets stood at 6.49 percent as of June 30, 2025, suggesting it is struggling to generate sufficient revenue from its asset base to cover operational costs.

The factory was initially managed by the Uganda Development Corporation (UDC), which held an 80 per cent stake on behalf of government, but in 2023, the Cabinet transferred management to Chimaki Company, headed by Ms Azeb Mesfin Zenawi, while government retained financial oversight through the Treasury.

Despite the transition, the latest audit shows no significant financial turnaround.

“There is no way our fruit plant will post returns if our own farmers and people are not consuming its products,” he said.

Calls for Local Support

The cultural leader of the Iteso Cultural Union, Mr Emorimor Paul Sande Emolot, has urged residents of Teso to prioritise consumption of locally manufactured products to boost the factory’s fortunes.

Mr Julius Ekoom, the factory’s executive director, said the new management is pursuing international certification and plans to establish an automated processing line for mangoes, pineapples and apples.

The proposed independent line is expected to reduce production costs, including bottle procurement expenses.