The Ministry of Works and Transport has announced that in the 2026/27 financial year, the government will not embark on new road projects. Instead, the focus will be on completing ongoing works, after only Shs 690.5 billion was allocated for infrastructure projects out of the Shs 2.3 trillion requested.
The revelation was made by Katumba Wamala while presenting the 2026/27 Ministerial Policy Statement before Parliament’s Committee on Physical Infrastructure. “Our priority now is to finish ongoing projects. We must secure land for contractors, pay backlog arrears, and ensure no reason exists for delays,” he said.
He added, “Backlog payments are attracting interest, which is essentially free money going to waste. We need to clear these arrears and prioritise land acquisition so contractors can deliver on time.”
Dr. Edward Ssimbwa defended the halting of new projects, revealing that out of 67 ongoing works, 28 experienced delays and 13 were abandoned or suspended. He noted that this approach aligns with the Ministry of Finance directive for all agencies to prioritise clearing domestic arrears and halt new projects, warning that accounting officers who fail to comply will face penalties.
The Committee was informed that the Ministry closed FY2024/25 with arrears totaling Shs 1.489 trillion, of which Shs 541 billion was cleared in FY2025/26, leaving a balance of Shs 948 billion. “We further expect Shs 218.456 billion once arrears are released by the Ministry of Finance next quarter. However, even with the current allocation of Shs 690.53 billion for national roads, we are still far below the required Shs 2.3 trillion,” Dr. Ssimbwa explained. He warned that failure to clear these arrears would continue to generate interest, worsening the financial pressure.
In the 2026/27 national budget, the Ministry has been allocated Shs 6.573 trillion, up from Shs 5.920 trillion in 2025/26. The increase reflects anticipated work on the Eastern Standard Gauge Railway and planned recruitment of additional staff.
However, the allocation still leaves a funding gap of Shs 1.923 trillion. Of the gaps highlighted, Shs 1.028 trillion has been funded, leaving several priorities unfunded. The Standard Gauge Railway requested Shs 515 billion but received only Shs 149 billion, leaving a shortfall of Shs 366 billion. Uganda National Airlines requested Shs 195 billion but received Shs 184.73 billion, leaving Shs 10.27 billion unfunded. The Ministry also seeks an additional Shs 351.9 billion for District Urban Community Access Roads.
With the budget constraints, the Ministry is prioritising completion of ongoing projects, land acquisition, and arrears clearance to prevent further delays and rising costs. “The message is clear: no new projects until ongoing works are fully funded and delivered,” Katumba said.
