UNOC now deals in wholesale distribution of bulk petroleum products
Several public corporations and state enterprises are making profits although many aren’t paying dividends to the Government as a key shareholder.
According to the Auditor General’s report dated December 2025, Edward Akol, the Auditor General analyzed the profitability of fifteen (15) public corporations and state enterprises.
He noted that nine (9) reported profits/surpluses during the year under Review (2024/2025
According to the report, Uganda National Oil Company (UNOC) Limited led with a profit of UGX.359.731Bn. The improved profitability was due to acquisition of licenses for importation, storage, and wholesale distribution of bulk petroleum products.
It was followed by Mandela National Stadium (MNSL) with UGX.92.6Bn profit, up from UGX18.66bn in 2023/2024 and National Housing and Construction Company Limited (NHCCL) after it posted UGX.79.2Bn in the year under review from UGX3.21bn posted the previous year.
The increase in profit was “mainly attributed to fair value gains on investment properties.”
However, while the Uganda Electricity Generation Company Limited (UEGCL) reported a profit of UGX.25.018Bn, this was a decline from UGX.54.282Bn reported in the previous year.
“The decrease was primarily attributed to the underutilization of the Karuma
Hydropower Plant due to low national demand,” the report says.
Other state-owned enterprises that made a profit include; NEC – Luwero Industries Limited (UGX12.1bn), NEC AGRO SMC Limited (UGX5.01bn), Uganda Printing and Publishing Corporation (UGX1.45bn), Nile Hotel International Limited (UGX1.34bn), NEC Uzima Limited (UGX589M) and Uganda Post Limited (UGX266m).
Loss-making enterprises
A comparison with the previous year revealed unfavourable trends for some state enterprises and corporations. For example, Uganda Broadcasting Corporation (UBC) and Uganda Property Holdings Limited (UPHL) both registered an increase in losses, and Uganda Electricity Transmission Company Limited (UETCL) transitioned from a profitmaking position to loss-making.
According to the report, these declines were caused by reduced revenue streams without a corresponding decrease in operating costs.
Uganda Electricity Transmission Company Limited made a loss of UGX293.09bn in 2024, from a profit of UGX82.25bn recorded a year earlier.
Uganda Railways Corporation’s losses reduced slightly to UGX32.81bn from UGX36.346bn.
Uganda Broadcasting Corporation (UBC) losses increased by 424% to UGX7.5bn from UGX1.432bn in 2023. Management attributed the revenue decline to strategy of opening radio stations in low-income areas to disseminate government information (strategic reasons).
NEC Farm Katonga Limited saw its losses decline to UGX1.57bn from UGX1.9bn, with management explaining that it is focusing on improving its revenue generation capacity.
“The programmes being implemented for food and feed production, in addition to bull fattening and breeding and will eventually offset the negative position,” the report reads.
For Uganda Property Holdings Limited, its losses increased by 252% to UGX96m from UGX63m. The loss was attributed to decline in revenue from the loss of World Food Programme as a major client and increased income tax.
“The above indicates mixed performance among public corporations and state enterprises. While nine demonstrated profitability, several faced significant challenges that could impact their future operations and obligations,” the Auditor General notes in his report to Parliament.
He advised the loss-making entities to devise clear strategies for improving operations and adopt more efficient financial management practices to reduce operating costs and enhance revenue generation.
“The Government should consider recapitalizing the most adversely affected entities to revamp their operations,” he further advises, adding: “Profit-making entities should consolidate their success strategies to ensure sustained growth and profitability.”
No Dividend Pay-out
According to the report, several public corporations and state enterprises, despite reporting significant profits, chose not to distribute any dividends to shareholders, particularly the government.
These included UNOCL, MNSL, NHCCL and UEGCL, among others.
“These entities cited their intention to retain earnings to fund planned investments/projects as the reason for withholding dividends,” the report says.
However, it adds that a review of financial statements and the Consolidated Summary Statement of financial performance, revealed that two entities declared and paid out dividends.
Although the New Vision Printing and Publishing Company Limited and NHIL declared dividends of UGX.3.837Bn and UGX.0.0.271Bn, they paid out UGX.1.390Mn, UGX.0.159Bn respectively.
“I also noted that Housing Finance Bank Ltd, which had declared dividends of UGX.32.567Bn, did not pay at all,” Akol says in his report, adding: “While retaining earnings for reinvestment may be strategically beneficial for growth, it is essential to balance this with shareholder returns. Shareholders expect return on their investment, especially in profitable entities.”
