Edward Akol, Uganda’s Auditor General
The Government through Uganda Development Corporation (UDC) earned a paltry UGX1.4Bn in 2025 after investing UGX1.3Trn into 22 companies, Edward Akol, the Auditor General has revealed.
In his December 2025 report which he presented to Parliament recently, Akol revealed that Government injected UGX3.1Bn in one company that remains non-operational four years after the initial investment. He adds that eight companies that were lent over UGX23Bn of taxpayer’s money hadn’t adhered to repayment terms.
It is worth noting that UDC is mandated to promote and facilitate industrial and economic development by investing in commercially viable projects that align with the National Development Goals.
“Over the last 10 years, UDC has invested UGX.1.3Tn in 22 companies through various modalities. Assessment of 10 active companies that provided documentation revealed that; 8 out of 10 companies recorded net losses for at least two consecutive years. Kaaro-Koffi Ltd, despite an investment of UGX3.1Bn, remains non-operational four years after the initial investment,” the Auditor General’s report reads in part.
It adds: “Eight companies that UDC loaned UGX.23Bn had not adhered to the agreed repayment terms and had neither paid principal nor interest. An assessment of UDC’s investment income for the year revealed a paltry UGX.1.4Bn against a UGX.1.3Tn investment, giving a return on Investment of 0.09%. The above analysis shows that the investment decisions made for UDC are not yielding returns.”
According to the report, only one company reported consistent and growing profits from 2022 to 2024 (UGX.796M in 2022, UGX.3.2B in 2024).
“One company, despite an investment of UGX.3.1 billion, remains non-operational four years after the initial investment. Financial statements were not on file for several companies for multiple years, limiting visibility on performance and compliance,” revealed Akol.
However, UDC argues that the impact of its investments in these companies should be measured on creation of both direct and indirect employment with a focus on productive jobs; utilization of local raw materials, and improvement of Uganda’s trade balance position.
Although UDC is expected to operate with a degree of independence, it is being financed through project-specific funding, the Auditor General raised concerns about Government’s interference in UDC’s mandate pointing out that Government releases funds to UDC that are already earmarked for specific projects, leaving UDC with no space to conduct proper investment appraisal.
Relatedly, the Auditor General also reported that Soroti Fruit Factory, one of the companies UDC has invested in incurred losses averaging UGX5.5Bn per year.
“However, I note that the company’s operating loss increased by 22% from UGX.4.391Bn in the financial year 2023/2024, to UGX.5.371Bn in the 2024/2025, which further increased the accumulated deficit,” stated Akol.
