Transport Ministry proposes UGX 8.3 trillion budget for roads, rail and air

Uganda and Kenya agree on SGR standards to link their conflicting rail systems, advancing the massive regional infrastructure project.

KAMPALA, Uganda — The Ministry of Works and Transport is requesting 8.3 trillion shillings for the 2026/27 fiscal year, a 40% increase intended to modernize the nation’s aging infrastructure through a multi-modal approach.

Works and Transport Minister Gen. Katumba Wamala presented the plan to Parliament’s physical infrastructure committee last Wednesday. The proposal represents a significant jump from the 5.9 trillion shillings allocated in the current budget, signaling a shift toward infrastructure as a primary economic catalyst.

Road projects remain the government’s top priority, claiming 4.17 trillion shillings, or roughly half the total request. Of that, 3.63 trillion shillings is designated for national roads, while funding for district and community access roads is set to triple to 330.34 billion shillings.

A substantial portion of the road budget aims to resolve existing bottlenecks. Approximately 758 billion shillings is earmarked to finish ongoing construction, while 44 billion shillings is targeted at short-term relief for congestion at the Busega junction.

Land acquisition remains a primary financial hurdle. The ministry has requested 338 billion shillings to secure the right-of-way for the Kampala-Jinja Expressway. Overall, the government plans to acquire more than 280 hectares of land in the coming year to prevent compensation disputes from stalling work.

The ministry reported that recent fiscal performance reached 63% by the end of the second quarter for 2025/26. However, development expenditure lagged at 56%. Officials cited delayed fund releases and a lack of counterpart funding for land acquisition as the primary causes for the slowdown, particularly in externally financed projects.

Beyond the road network, the government plans to spend 3.69 trillion shillings on rail, air, and water transport:

Rail: Rehabilitation of the Tororo-Gulu line is 66% complete. The ministry aims to begin construction on a 27-kilometer section of the Malaba-Kampala Standard Gauge Railway.

Aviation: Uganda Airlines is slated to receive 145 billion shillings for operations. Another 126.9 billion shillings is requested for a terminal at Kabalega International Airport, which is currently 96% complete.

Water: Reclamation at the Bukasa port is expected to finish by June, with the project currently at the halfway mark.

The proposal faced sharp questions from lawmakers during the committee meeting at Speke Resort Munyonyo. Committee Chairman Tony Awany questioned the necessity of the 126.9 billion shilling request for Kabalega International Airport, asking why such costs were surfacing when the project is nearly finished.

Lawmaker Sarah Opendi criticized the continued 145 billion shilling subsidy for Uganda Airlines despite its ongoing losses. She suggested redirecting those funds toward the railway system, which she argued is a more cost-effective alternative.

Other members of Parliament pushed for more equitable distribution of infrastructure funds. Francis Mwijukye called for better connectivity in gold-producing regions like Buhweju, while Gerald Rwemulikya Ibanda urged the national carrier to establish domestic routes to improve its financial viability.

The committee will continue to review the policy statement before the final budget is approved for the new financial year starting in July.