Uganda Railways Remains Loss-Making Despite Investment and Rehabilitation

Uganda Railways remains loss-making despite rehabilitation and rising revenue, raising questions about freight capacity, asset use and transport efficiency.

News: Despite recent investment and rehabilitation, Uganda Railways Corporation remains loss-making. It recorded a Shs. 32.8 billion loss in FY2024/25, according to findings arising from the Auditor General’s review. Parliamentary scrutiny has also highlighted weak revenue generation, idle assets, missing wagons, rehabilitation delays and unresolved land issues.

URC's Gulu Logistics Hub in 2022, Photo Innova/CFUg

Context: The loss narrowed from about Shs36.3 billion the previous year, while internally generated revenue increased. However, URC continues to operate with severe infrastructure and rolling-stock constraints. Management has cited the rehabilitation backlog inherited after the railway concession ended, limited locomotive availability and difficulty obtaining spare parts. Parliament has separately questioned the whereabouts of hundreds of wagons and the under-use of railway assets.

Stakeholder Implications: Rail remains strategically important to Uganda’s freight and construction economy, particularly for bulk materials and regional trade. The concern is therefore not simply whether URC makes an accounting profit, but whether continuing public investment is translating into dependable freight capacity, productive assets and lower logistics costs.