Uganda suspends 27 road projects due to funding shortfall

At least 27 major road and bridge projects across Uganda have been suspended or slowed down due to a government funding shortfall, the Minister of Works and Transport, Gen. Edward Katumba Wamala, told Parliament on Wednesday, 30 July 2025.

The projects are affected by a Shs2.472 trillion gap for the financial year 25-26, where only Shs682 billion of the required Shs3.153 trillion was provided, leaving the government unable to pay contractors and acquire land.

Katumba said the affected projects include the Masindi-Biiso and Kabale-Kiziranfumbi oil roads, the Kampala-Mpigi Motorway, and the Kampala-Jinja Highway. “27 projects have been affected by either full suspension or significant reduction in progress. These include 18 fully funded by the Government of Uganda, where contractors have suspended or slowed down works due to delayed payments, and nine externally financed projects, where delays are primarily attributed to the government’s inability to provide timely counterpart funding,” he said.

He added that the government is carrying over Shs1.071 trillion in arrears from previous years, adding commercial interest and cost claims from contractors. A further Shs443 billion is needed for land compensation to access sites, which has affected externally funded projects.

“The cumulative effect of these suspensions and delays has led to slow absorption of project resources, exposure to financial claims, risk of asset deterioration, and reputational concerns,” he stated.

Uganda’s road network is also deteriorating. Katumba told Parliament that 1,993 kilometres need urgent periodic maintenance and 260 kilometres require rehabilitation. “If not implemented, these roads degrade and instead require rehabilitation, which costs about Shs2.59 billion per kilometre, three times the periodic maintenance cost,” he warned, adding that this could cause a preventable fiscal loss of up to Shs180 billion.

He called for urgent financial intervention to protect the road network’s role in economic growth and service delivery. However, Parliament could not debate the issue because no ministers from the Ministry of Finance, Planning, and Economic Development were present.