By The Uganda Railways Corporation (URC) has renewed calls for government support, proposing an annual allocation of at least UGX 500 million to repair and maintain the country’s dilapidated railway network. The funding, URC argues, would significantly improve rail safety, increase train speeds, and help ease the rising burden on Uganda’s deteriorating road infrastructure.
Appearing before Parliament’s Committee on Commissions, Statutory Authorities, and State Enterprises (COSASE) on August 6, 2025, URC Managing Director Benon Kajuna stressed the urgency of rail maintenance. “The government spends heavily on road repairs, but has overlooked railways. Investing UGX 500 million annually in rail maintenance could reduce long-term road maintenance costs and improve transportation efficiency,” Kajuna said during discussions on the Auditor General’s December 2024 report.
Latest
UPDF Officers Under AUSSOM Complete Human Security Planning Training in Somalia
Vuvuzelas, Fireworks, and Umbrellas Banned Ahead of Uganda vs Guinea Clash at Namboole
Gov’t Waste Strategy Targets Sector Reform, Resource Recovery
Minister Magezi Urges Citizens to Take Lead in Waste Management
Sandra Teta Held Over Alleged Assault on Singer Weasel in Munyonyo
Presidential Aspirants to Begin Picking Nomination Forms on August 11 – EC
UPC Urges Calm Ahead of Party Primaries, Warns Against Indiscipline
Kenyan High Court to Hear Besigye’s Illegal Extradition Petition
DPP Blocks Bail for Besigye and Lutale, Citing 180-Day Constitutional Rule
The appeal comes at a time when Uganda’s road infrastructure is facing a crisis. Last week, Works and Transport Minister Gen. Edward Katumba Wamala revealed a massive UGX 10.5 trillion loss in the value of the country’s paved road network falling from UGX 37.4 trillion to UGX 26.9 trillion due to underfunding and delayed maintenance. Currently, 2,460 kilometers, or 39% of the road network, are in critical condition.
According to the ministry, failure to conduct timely maintenance means roads deteriorate into the more expensive rehabilitation or reconstruction phases. Periodic maintenance costs UGX 888 million per kilometer, but this figure jumps to UGX 2.59 billion for rehabilitation and UGX 3.7 billion for reconstruction. “Neglecting even 100 kilometers of roads could cost the country an extra UGX 111 billion,” Katumba warned.
In response to limited funding, URC has laid out a series of innovative strategies to raise its own revenue. One such approach includes leasing portions of its approximately 10,000 hectares of land across districts such as Kampala, Jinja, Kasese, Tororo, Soroti, Lira, Gulu, Pakwach, Masindi, and Arua. “We are seeking credible investors to develop these properties under a leasehold model, while URC retains ownership. This will generate income and reduce our dependency on the national budget,” Kajuna said.
The corporation also floated the idea of a railway levy, similar to those in Kenya and Tanzania, where a small fee is charged per ton of cargo transiting through regional ports like Mombasa or Dar es Salaam. “A levy of just one dollar per ton could generate substantial revenue to fund railway maintenance,” said Kajuna, noting that such mechanisms have proven effective in neighboring countries.
Facing operational hurdles, URC is also grappling with a UGX 900 million fuel debt. To resolve this, it is proposing a UGX 10 billion annual fuel reserve fund to ensure uninterrupted service. Kajuna confirmed that the proposal has already been shared with the Ministry of Works and Transport and has received support.
Additionally, URC is prioritizing staff capacity development and regional collaboration. The corporation plans to roll out performance-based contracts and training programs in railway operations, maintenance, and planning. “We are working closely with our counterparts in Kenya and Tanzania to strengthen operations and verify our assets in the region,” Kajuna added.
With these reforms and budgetary appeals, URC hopes to not only revitalize the rail sector but also ease the pressure on Uganda’s strained road network—advancing safer, cheaper, and more sustainable transportation infrastructure.
