The government of Uganda will fully settle all UNRA debts, according to Gen Edward Katumba Wamala, Minister of Works and Transport. He offered this assurance on June 19 during a high-level dialogue with contractors in Kampala.
Speaking at the event hosted by the Uganda National Association of Building and Civil Engineering Contractors (UNABSEC), Gen Katumba clearly acknowledged the debts. He stated that the government remains committed to paying each outstanding amount from the now-dissolved Uganda National Roads Authority.
“I want to allay all your fears and assure you that the government will pay every debt owed, including those that arose under UNRA,” he said. “So don’t be afraid to continue working with government.”
He emphasized that this is not a new practice. Since 1986, the government has cleared many debts it inherited. Gen Katumba reminded attendees that his ministry once held a large debt, but the government gave them Shs1.3 trillion to cover it. Now, only Shs664 billion remains, and the ministry expects that balance in the next national budget.
Contractors in Uganda, especially those in the construction and civil works sector, often struggle with delayed payments. Gen Katumba addressed this issue and urged financial institutions to ease lending terms. He believes that fair credit access is vital to help the sector grow.
The minister also reaffirmed the government’s support for local contractors. According to current policy, at least 30% of all public contracts must go to local companies. This move, he said, strengthens Uganda’s internal capacity and creates more jobs.
The event’s theme, “Unlocking Sector Growth through Inclusive Procurement and Sustainable Financing Solutions,” attracted key stakeholders. It served as a space for government, banks, and contractors to restore trust and find solutions.
UNABSEC President Ms. Kiara Binta Nkuranga stressed the need for responsive financing models. “We need reliable and responsive financing models to address the unique needs of the construction sector,” she said. “Countries like Nigeria and Singapore offer excellent case studies we can learn from.”
Mr. Godfrey Ssebaana, from Diamond Trust Bank and the Uganda Bankers Association, suggested documentary credit facilities. These, he said, could offer lower interest rates for firms with steady cash flow. He believes such models would replace dependence on expensive commercial loans.
The Executive Director of the Public Procurement and Disposal of Public Assets Authority (PPDA), Mr. Benson Turamye, added that procurement plays a central role in development. “We must deliberately support and train our local contractors so they can grow and compete,” he said.
By promising to clear all UNRA debts, the government aims to rebuild contractor confidence. It also shows its commitment to transparency and sustainable growth.
This renewed trust, combined with better access to capital and inclusive procurement rules, creates a more hopeful future for Uganda’s construction sector. Gen Katumba emphasized that honoring historical obligations is not just policy—it’s a principle.
