Inside govt’s Shs8.8 trillion plan for roads, railway in FY2026/27

The long-awaited completion of the Shs200 billion Kira-Kasangati-Matugga Road project is among the major infrastructure priorities earmarked for funding under the government’s Shs84 trillion budget for the 2026/27 financial year. The road, whose construction was launched by President Museveni in December 2020, forms part of a wider package of transport infrastructure projects that the government says will improve connectivity, lower transport costs and support economic growth.

Constructed by Chongqing International Construction Corporation (CICO), the approximately 23 kilometre road stretches from Kyaliwajala Trading Centre through Kira and Kasangati to Matugga, with a spur road to Buwate. The project includes dual carriageways, five major junctions and street lighting along key sections. Initially scheduled for completion in January 2024, the project suffered delays that sparked public frustration after progress reports in August 2023 showed that work had reached only 30 per cent completion.

Now, according to the 2026/27 National Budget Framework Paper, the road is among four major highway projects expected to be completed during the coming financial year. The others are the 92-kilometre Muyembe-Nakapiripirit road linking the Bugisu and Karamoja sub-regions, the Tororo-Busia road together with the Mayuge-Busia Town road, and the 100.1-kilometre Apac-Lira-Puranga road. Together, these projects form part of a broader infrastructure programme that will consume Shs8.79 trillion under the Works and Transport sector allocation.

Focus on stalled road projects

Beyond the completion of ongoing projects, the government plans to commence construction and upgrading of an additional 697.6 kilometres of roads identified under the Fourth National Development Plan (NDP IV). The projects include the Kayunga-Baale-Galiraya road, Katine-Ochero road, Muko-Katuna road, Jinja-Mbulamuti-Kamuli-Bukungu corridor, Kitgum-Kidepo road, Kumi-Ngora-Brooks Corner-Serere-Kagwara road, Karugutu-Ntoroko road and its Rwebisengo link, Laropi-Moyo-Afoji road, as well as road works in Kaberamaido, Kalaki, Jinja City and Ntoroko District. Works and Transport Minister Fred Byamukama said the government’s immediate focus will be on completing projects that have stalled or suffered prolonged delays.

‘We have seen tarmac roads take four years, six years and are not finished. We even have abandoned projects such as Mubende-Mityana. I want to ensure that roads that have not been completed, for example Mubende-Mityana Road, Mutukula Road and the Jinja Express Highway, are prioritised,’ he said. The ministry is also planning extensive maintenance works across the national road network. The government intends to undertake routine manual maintenance on about 20,000 kilometres of roads, including 5,857.86 kilometres of paved roads and 13,350.6 kilometres of unpaved roads.

Another 13,844 kilometres will undergo routine mechanised maintenance, while 1,185.95 kilometres of unpaved roads will be maintained under periodic maintenance programmes. Among the major highways earmarked for rehabilitation are the Kampala-Jinja Highway, Busunju-Kiboga-Hoima road, Mityana-Mubende road and Mityana town roads, Kikorongo-Bwera-Mpondwe road, Olwiyo-Pakwach road, Matugga-Semuto-Kapeeka road, Tororo-Mbale-Soroti road, Soroti-Dokolo-Lira-Kamdini road, Masaka-Mutukula road and the Karuma-Olwiyo road. Emergency reconstruction works will also continue on Katonga Bridge, Lwera Swamp and Kalandazi Swamp sections, which have previously disrupted transport along major corridors.

The government plans to grade roads under the Force Account Unit in districts including Amuria, Katakwi, Kole, Yumbe, Gomba and Sembabule. Under the Shs1 billion road maintenance grant programme, authorities plan to rehabilitate 11,000 kilometres of district and community access roads and 2,460 kilometres of roads in cities and municipalities. A significant share of infrastructure spending will target the Greater Kampala Metropolitan Area (GKMA), where the government is implementing a long-term urban development strategy approved by Cabinet in 2013. The GKMA Development Framework 2040 designated the metropolitan area as a Special Planning Area to support coordinated urban growth.

In September 2024, Vice President Jessica Alupo unveiled a broader programme under which the government plans to construct 440.19 kilometres of roads, 19 markets, two slaughter facilities and 54.5 kilometres of stormwater drainage systems across the metropolitan region.

Greater Kampala expansion

Kampala Capital City Authority is expected to receive 72.06 kilometres of roads, four markets and three drainage channels.

Mukono District will receive 59.3 kilometres of roads, two markets, a slaughterhouse and drainage infrastructure. In comparison, Makindye-Ssabagabo Municipality is slated to get 56.6 kilometres of roads, a market, a slaughterhouse and drainage systems.

Other beneficiaries include Wakiso District, Mukono Municipality, Nansana Municipality, Mpigi District, Entebbe Municipality and Kira Municipality.

Kira, which became the first beneficiary under the programme, is expected to receive 46 kilometres of roads and two markets.

The government will also continue implementing the Kampala City Road Rehabilitation Project (KCRRP), Kampala City Roads and Bridges Upgrading Project (KCRBUP), and the Greater Kampala Metropolitan Area Urban Development Programme. Under KCRRP, more than 120 kilometres of roads are being upgraded, including Salaama Road, Spring Road, Fifth Street, Sixth Street, Seventh Street, Port Bell Road, Old Mubende Road and Sir Apollo Kaggwa Road. Construction on the Mpererwe-Kiteezi-Kiti corridor is also expected to commence.

Funded by the African Development Bank, the project goes beyond road surfacing to include drainage improvements, street lighting and signalised junctions aimed at reducing congestion and flooding. Beyond roads, government is increasingly focusing on rail transport as part of efforts to lower freight costs and reduce pressure on the road network. Finance Minister Matia Kasaija’s representative and State Minister for Finance Henry Musasizi said government remains committed to delivering the Standard Gauge Railway (SGR) and rehabilitating the existing Meter Gauge Railway (MGR). According to the National Budget Framework Paper, government plans to construct 272 kilometres of SGR. The project gained momentum in 2024 when Uganda signed a 2.7-billion-euro contract with Turkish firm Yapi Merkezi for construction of the line between Tororo and Kampala.

Railway revival

The railway is expected to serve both freight and passenger transport and connect directly with Kenya’s SGR network, reducing transit times and transport costs across the region. President Museveni and Kenyan President William Ruto recently launched the extension project. Government has indicated that financing will come from a combination of domestic resources and development partner support. In March, the World Bank committed $650 million towards the project, subject to completion of technical, economic, commercial and legal feasibility studies.

The budget framework shows that the government intends to finance the construction of the first 27 kilometres of the railway from Malaba towards Kampala during the coming financial year. Speaking during the Budget Speech last week, President Museveni said anticipated oil revenues would help finance strategic infrastructure projects, particularly rail transport. ‘We need to use some of it (oil money) to do crucial infrastructure like the railway with Kenya, Tanzania, Congo, South Sudan and Rwanda so that all heavy cargo moves from the road to the railway,’ he said.

According to the President, shifting freight transport from railroads will significantly lower cargo transportation costs and improve efficiency. Mr Byamukama described the Kampala-Malaba section and the rehabilitation of the Kampala-Malaba-Tororo-Gulu meter gauge network as among the government’s highest transport priorities.

Meter Gauge Railway rehabilitation

The government also plans to complete physical maintenance works on the Tororo-Gulu railway line and rehabilitate another 245 kilometres of track between Kampala and Malaba. Additional investments include the construction of two passenger terminus stations and five passenger halts. To strengthen railway operations, the government intends to procure four 3,000-horsepower locomotives, two 2,000-horsepower locomotives and four 1,200-horsepower locomotives. The Uganda Railways Corporation will also acquire four Diesel Multiple Unit locomotives, six passenger coaches and a 100-tonne crane.

A multifunctional one-stop railway centre is also planned. The government’s transport strategy also places renewed emphasis on aviation infrastructure. The Works and Transport Ministry plans to operationalise Kabalega International Airport and rehabilitate strategic airports and aerodromes in Gulu, Kasese, Arua, Pakuba, Kidepo, Kisoro, Mbarara, Lira, Tororo, Masindi, Moroto, Jinja and Soroti. The government also intends to increase the capitalisation of Uganda Airlines to support fleet expansion and strengthen the national carrier’s route network.

Last week, Uganda Airlines signed a Shs3.7 trillion agreement with American aircraft manufacturer Boeing to acquire 10 new aircraft. Mr Byamukama described the acquisition as a strategic investment that will strengthen Uganda’s global connectivity.

‘It is a very expensive project, but the President said we have no other option. We need to build our own airline. That is how Uganda can be connected to the rest of the world,’ he said.

The airline has faced significant operational challenges in recent months due to fleet shortages and maintenance-related disruptions. In March, the government secured Shs422.26 billion to support fleet expansion as part of a supplementary budget allocation.

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