Kyambogo University is set to enter a public-private partnership with an investor to develop a multi-purpose sports arena, a business center, and more than five student hostels. This initiative aims to boost the university’s revenue amid ongoing financial challenges.
The plan is part of the university’s strategy to address funding shortfalls caused by declining government support. Vice Chancellor Professor Elly Katunguka Rwakishaya explained that with the continued reduction in government funding, the university was asked to explore alternative avenues for raising funds to sustain operations.
On Tuesday, Kyambogo University hosted over 40 local and international companies that responded to its call for proposals. The potential investors toured the designated sites for the project, which will be built on 31 acres of land provided by the university. The estimated cost of the development exceeds USD 100 million.
According to Professor Katunguka, Kyambogo University operates on an annual budget of UGX 140 billion but receives only UGX 67 billion from the government, which is earmarked solely for staff salaries. This reliance on internally generated revenue, mainly from tuition fees, has proven insufficient, forcing the university to accumulate debts exceeding UGX 10 billion. As a result, the university management decided to seek alternative revenue sources through a public-private partnership.
Professor Katunguka mentioned that the decision to focus on constructing student hostels was based on the potential for steady income. He cited Makerere University, which has nine halls of residence, each accommodating more than 200 students.
The new hostels at Kyambogo University will accommodate at least 10,000 students, a significant increase from the current facilities that house only 1,400 students, of whom 1,000 are government-sponsored. Regarding the multipurpose sports arena, Katunguka explained that it would also generate revenue by being available for rent to external organizations. Uganda currently lacks such a facility.
The planned arena will have a seating capacity of 5,000 and parking space for at least 340 cars. Upon completion, the university will agree with the private investor on revenue-sharing terms, allowing the investor to recoup their investment before handing over the facilities to the university. When asked about the anticipated contribution of these projects to the university’s annual budget, Katunguka noted that the exact figures would be determined after discussions with the investor.
Robert Baterengaya, the Director for Planning and Development at Kyambogo University, told URN that the university aims to finalize the partnership by June 2025. Construction is expected to be completed within two years.
-URN
