Uganda’s government has halted or slowed work on at least 27 major road and bridge projects across the country due to a significant budget deficit, according to the Minister of Works and Transport, Gen. Edward Katumba Wamala. He told Parliament that the ministry faces a Shs2.472 trillion shortfall for the 2025/26 fiscal year, having received only Shs682 billion out of the Shs3.153 trillion it requested.
The affected infrastructure includes vital routes such as the Masindi–Biiso and Kabale–Kiziranfumbi oil roads, the Kampala–Mpigi Expressway, and the Kampala–Jinja Highway. These roads are essential for supporting Uganda’s oil production, trade corridors, and national connectivity.
Delayed payments
Katumba explained that 18 of the stalled projects are entirely funded by the Ugandan government, with contractors either halting operations or significantly reducing progress due to delayed payments. The remaining nine projects, which rely on external financing, have also been delayed as the government has failed to provide timely counterpart funding, which is often required to unlock external disbursements.
In addition to the current budget crisis, the ministry is grappling with arrears of Shs1.071 trillion carried forward from previous years. These unpaid bills have led to financial claims and penalties from contractors. Moreover, the government needs Shs443 billion to compensate landowners to gain access to project sites a bottleneck that particularly affects donor-funded projects.
Katumba warned that the ripple effects of these disruptions include slow implementation, mounting legal and financial claims, deteriorating road assets, and damage to Uganda’s credibility with development partners.
He also raised concern about the condition of Uganda’s road network. According to the ministry, nearly 2,000 km of roads need urgent maintenance, and another 260 km are in such poor shape that full rehabilitation is required. If neglected, these roads could deteriorate further and cost the government up to Shs2.59 billion per kilometre to fix three times more than regular maintenance costs potentially resulting in avoidable losses of up to Shs180 billion.
The Minister appealed for urgent financial support to safeguard the country’s road infrastructure and its contribution to economic growth. However, Parliament was unable to engage in detailed discussion as no representatives from the Ministry of Finance were present during the session.