Ugandan taxpayers are facing a staggering Shs250 million in daily interest charges due to unpaid work by contractors and suppliers engaged by the Uganda National Roads Authority (UNRA).
This revelation was made by UNRA Executive Director Allen Kagina, who stated that the accumulating interest fluctuates based on the Authority’s ability to settle its debts.
Kagina made these remarks while appearing before the Parliament’s National Economy Committee, which was reviewing a loan request of Shs324.922 billion for the construction of the Laropi-Moyo-Katuna-Kamuganguzi Road Project.
Denis Oguzu, the Maracha County MP, questioned Kagina about the repeated abandonment of road projects and the mounting financial burden caused by delayed payments to contractors.
Kagina attributed the problem to the unpredictable nature of cash flows within the Authority, affecting their ability to clear invoices on time.
“The interests depend on when we are able to pay the contractors. Delays, unfortunately, result in penalties that accumulate and are shouldered by the taxpayers,” she explained.
The Shs324.922 billion loan is part of the government’s larger infrastructure development plan, which aims to enhance Uganda’s road network, particularly in regions critical to trade and transportation.
However, concerns about financial management and the long-term sustainability of these projects have heightened as the debt burden continues to grow.
MPs expressed frustration over the lack of proper financial planning within UNRA, stressing the need for more transparency and efficiency in managing public funds.
As Uganda continues its ambitious infrastructure agenda, the increasing debt tied to unfinished or delayed projects remains a significant concern for both lawmakers and the general public.