Funding Crisis in Parliament

Uganda’s road and bridge sector is under severe strain. On 30 July 2025, the Minister of Works and Transport, Gen. Edward Katumba Wamala, told Parliament that 27 major road projects have either been suspended or slowed down due to an unprecedented funding shortfall.

The Works Ministry required Shs3.153 trillion for the 2025/26 financial year but received only Shs682 billion, leaving a gap of Shs2.472 trillion. On top of this, the government is carrying Shs1.071 trillion in arrears, with contractors already demanding commercial interest on unpaid balances.

High-profile projects caught in the crisis include the Masindi–Biiso and Kabale–Kiziranfumbi oil roads, the Kampala–Mpigi Expressway, and the Kampala–Jinja Highway. Land acquisition has made matters worse, with Shs443 billion needed for compensation before work can even progress.

President Museveni’s Directive

In response, President Museveni directed the Ministry of Transport to give priority to completing ongoing projects and to keep both tarmac and murram roads in good condition.

Reviewing the sector’s Shs5.912 trillion budget, he noted that resources are also stretched to cover the Standard Gauge Railway and Uganda Airlines. He stressed that road works alone require about Shs3.2 trillion, calling for urgent government action to secure the necessary funding.

The President specifically called out roads such as the Mityana–Mubende–Kyenjojo, Ibanda–Mbarara, Ishaka–Mbarara, and Mukono–Lugazi–Jinja highways as urgent priorities.

Voices from the Ground

Away from Parliament and State House, the crisis is visible on the ground.

On the Najjanankumbi–Busabala Road, residents described dangerous, half-finished stretches littered with uncovered manholes. Along the Mubende–Mityana road, traders and transporters say stalled works are negatively affecting business.

These voices illustrate the human cost: stalled projects don’t just frustrate contractors, they affect farmers, commuters, and entire trade corridors.

Why It Matters

• Contractors: Local firms face mounting arrears, risking insolvency and layoffs.

• Suppliers: Unpredictable demand for cement, steel, and aggregates creates volatility in the materials market.

• Communities: Poor and unfinished roads raise transport costs and compromise safety.

• Investors: Confidence in Uganda’s infrastructure pipeline remains fragile — political directives need cash to back them.

• Fiscal Reality: Deferred maintenance could triple future costs, draining already scarce resources.

CFU Takeaway

Parliament has raised the alarm, the President has demanded urgency, and communities are calling for action. The real test lies in whether Uganda can align political will with financial capacity to deliver critical infrastructure without sacrificing fiscal discipline.

CFU will continue to track which projects resume, which remain in limbo, and how these decisions reshape the construction industry’s future.