Parliament’s Committee on Physical Infrastructure has questioned the decision to award Pinnacle Security Ltd a Shs 36 billion annual contract to collect toll fees on the Kampala-Entebbe Expressway, saying the arrangement could expose government to revenue losses.
The committee, chaired by Mwine Mpaka, raised the concerns during an on-spot inspection of the expressway’s tolling operations, where MPs questioned the procurement process, revenue-sharing arrangement and the effectiveness of the toll collection system.
The committee’s vice chair Eng. William Taylor Tiyo said Pinnacle appeared to have been handed the contract without adequate due diligence, following the expiry of the contract held by Egis, the previous toll operator.
“It will look like Egis now said that we have mentored a child and it is called Pinnacle, and therefore there was no need for new due diligence. They just pressed enter and the contract was produced,” Tiyo said.
Mpaka questioned why government had committed such a significant amount of revenue to a private contractor when the expressway generates an average of Shs42 billion annually from toll collections.
“Since you committed us to such an arrangement, for example, one year, our average revenue from road tolls is Shs42 billion and you have given a private contractor Shs36 billion,” Mpaka said.
He said government must establish who would bear responsibility for any losses arising from the arrangement.
“All the losses that are made, someone must account for them,” Mpaka said.
The MPs also questioned the Shs200 million reportedly spent by Egis on training, seeking clarification on the purpose and beneficiaries of the expenditure.
Pinnacle contract questioned
The committee established that after the Egis contract expired in May 2026, Pinnacle Security Ltd was contracted through direct procurement to collect toll fees at an annual cost of Shs36 billion.
This is despite the expressway generating an average of Shs42 billion in toll revenue annually, leaving only about Shs6 billion before other operational costs are considered.
The MPs further established that Ivan Katamba, the former general manager of Egis, is also the general manager of Pinnacle Security Ltd.
The development raised questions about the relationship between the two companies and the extent to which the previous operator may have influenced the award of the new contract.
Katamba told the committee that Egis had been responsible for marketing, branding and provision of the tolling software, while much of the actual toll collection and patrol operations were being carried out by Pinnacle.
“Pinnacle Security Ltd was the one conducting patrols, collecting money and operating the call centre,” Mpaka said, questioning what functions Egis was performing under its contract.
The MPs also questioned why Pinnacle was selected without open advertising or a fresh due diligence process.
Toll system found to be manual
The committee’s concerns deepened after MPs discovered that the tolling system on the Kampala-Entebbe Expressway is not fully automated, contrary to earlier presentations by Egis that suggested the system was automated.
During the on-spot inspection, MPs tested an electronic card intended to open a toll barrier. However, instead of the barrier opening automatically, the officer on duty manually opened it.
In another practical test, a toll card issued for a saloon car, which attracts a Shs5,000 fee, was used to clear a bus that should ordinarily pay Shs15,000.
The barrier was opened manually by the toll operator, allowing the vehicle to pass despite the card being registered for a lower tariff.
The incident prompted MPs to question the implications of manual intervention for revenue collection, accountability and possible revenue leakage.
The committee is expected to scrutinise the toll collection arrangements further and establish whether the current system provides adequate safeguards against loss of public revenue.
Expressway background
The 49.5-kilometre Kampala-Entebbe Expressway was commissioned in 2018 after construction by China Communications Construction Company (CCCC).
The project, which started in 2012, was financed through a US$476 million loan from the Export-Import Bank of China, with a repayment period of 20 years.
The expressway currently serves an average of 28,000 vehicles daily, while more than 4,570 motorists use Upesi electronic smart cards to pay toll fees.
Over the past three years, the expressway has recorded 25.3 million vehicle passages, highlighting its importance to Uganda’s transport network.
The road has significantly reduced travel time between Kampala and Entebbe and has become a major transport corridor for motorists accessing Entebbe International Airport and surrounding areas.
