Uganda’s Major Infrastructure Projects Face Suspension Due to Severe Financial Constraints

Uganda's Major Infrastructure Projects Face Suspension

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Uganda is currently grappling with a critical slowdown and suspension of multiple important infrastructure projects, especially roads and bridges, primarily due to severe financial constraints. This crisis has put at risk the development and maintenance of critical transport infrastructure that supports economic growth, regional integration, and service delivery across the country.

As of July 2025, at least 27 major road and bridge projects have either been suspended or significantly slowed down. These include 18 projects that are fully government-funded, where contractors have halted or reduced work due to delayed payments, and 9 externally financed projects stalled mainly because the government has failed to provide timely counterpart funding. The affected projects include critical oil roads such as the Masindi-Biiso and Kabale-Kiziranfumbi roads, the Kampala-Mpigi Expressway, and the Kampala-Jinja Highway.

The Financial Shortfall and Its Causes

The underlying cause of these disruptions is a massive funding gap of approximately UGX 2.472 trillion for the 2025/2026 financial year. While the government needed UGX 3.153 trillion for ongoing road projects, only UGX 682 billion was allocated under the Medium Term Expenditure Framework. Furthermore, the government carries UGX 1.071 trillion in arrears from previous years, with additional costs accruing due to commercial interest and contractor claims. Land acquisition and compensation issues exacerbate the problem, with UGX 443 billion required to enable access to construction sites.

This shortfall has led contractors to abandon several key projects entirely. Some of the most notable fully suspended projects include:
  • Masindi-Biiso and Kabale-Kiziranfumbi oil roads (owed UGX 111 billion)
  • Najjankumbi-Busabala road (contractors owed UGX 44 billion)
  • Moroto-Lokitanyala road
  • Mityana-Mubende road (significant payments remain outstanding leading to suspension)
  • Kampala-Jinja Highway (72 km)

In addition to complete suspension, other projects are progressing at a reduced pace due to delayed payments and ongoing land acquisition problems, such as the Kira-Kasangati-Matugga road and the Kisubi-Nakawuka-Nateete corridor, among others.

 

Bridge Projects Also Affected

Critical bridge constructions are not spared from these financial woes. Projects such as the Katonga Bridge (part of Masaka road), Upper Katonga Bridge on the Kabulgasoke-Villa Maria Road, and the Ssezibwa Bridge have all experienced significant setbacks due to funding delays and land issues.

Consequences for Uganda’s Road Network and Economy

The slowdowns and suspensions are already causing rapid deterioration of Uganda’s road infrastructure. Around 1,993 kilometers require urgent periodic maintenance, and 260 kilometers need rehabilitation. Failure to maintain roads timely leads to more expensive rehabilitation costs, estimated at three times the cost of periodic maintenance—a potential fiscal loss of up to UGX 180 billion.

Minister of Works and Transport, Gen. Edward Katumba Wamala, has warned that if the situation is not urgently addressed, the disruptions will severely compromise Uganda’s ability to deliver and maintain critical national infrastructure, which is essential for economic growth, regional trade, and service delivery.

Government and Parliamentary Response

In Parliament, the severity of the situation has been acknowledged, with criticism focusing on delayed payments and budgeting lapses by the Ministry of Finance, Planning and Economic Development. However, during a parliamentary session discussing the issue, no ministry officials were available to respond, frustrating the House.

President Museveni has also intervened, ordering the Ministry of Works to fix the budgetary challenges and expedite the stalled projects to mitigate further economic losses.

Infographic & Facts Summary

Aspect Details
Number of suspended/slowed projects 27 total (18 government-funded, 9 externally funded)
Funding required for FY 2025/26 UGX 3.153 trillion
Funding allocated UGX 682 billion
Funding gap UGX 2.472 trillion
Arrears from previous years UGX 1.071 trillion
Major fully suspended roads Masindi-Biiso, Kabale-Kiziranfumbi, Kampala-Jinja Highway, etc.
Bridge projects affected Katonga Bridge, Upper Katonga Bridge, Ssezibwa Bridge
Road Km needing urgent maintenance 1,993 km
Road Km needing rehabilitation 260 km
Estimated fiscal loss if unaddressed UGX 180 billion

 

Uganda’s infrastructure ambitions face a critical juncture where financial management and timely allocation of funds are essential to avoid long-term degradation and economic setbacks. The government’s ability to mobilize resources, prioritize payments, and resolve land acquisition problems will be vital in reviving these stalled projects that underpin the nation’s development.

This analysis is based on recent official statements and reports as of August 2025 from Uganda’s Ministry of Works and Transport and Parliament.

 

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