National Water and Sewerage Corporation’s plan to borrow over UGX600Bn from commercial banks in Uganda to fund infrastructure projects has been rejected by MPs.
This is a result of the Corporation’s wicked credit worthiness due to unpaid UGX69.94Bn water bills by Ministries, Departments and Agencies (MDAs).
The revelation was made by Herbert Ariko, Chairperson, Parliament’s Committee on Environment and Natural Resources, while appearing before the Budget Committee, to present the report on the 2026/27 National Budget Framework, for the Corporation on 28th January 2026.
Ariko revealed, “National Water and Sewage Corporation had planned to mobilize UGX600Bn from domestic banks to finance water infrastructure in these towns with an estimated requirement of about UGX19Bn to UGX20Bn per town. However, the ability of NWSC to mobilize financing has been curtailed in the market, especially due to the outstanding government areas totalling to about UGX69.94Bn from the 40 MDAs as of December 2025. These are the issues that have curtailed national water in getting their own funding to help us develop water infrastructure in the country.”
Ariko further informed the Budget Committee that as much as Parliament recommended for the provision of UGX81Bn to have the water bill arrears cleared up to zero as of June 2025, the money hadn’t been remitted to some of the MDAs, but also, between July and December 2025, there has been also accumulation of a new kind of areas and as such, NWSC would likely return to the staggering UGX80Bn or even higher. He thus called for the strengthening of compliance mechanisms and ensure that when the money is provided for, it is actually remitted.
Remigio Achia, Vice Chairperson Budget Committee asked Ariko to ensure that the matter of unremitted water bills is handled by the Ministry of Finance remarking, “This matter should be captured and reported to the Ministry of Finance. Because why did they insist on giving them money to the people who don’t pay? And what would be the action because they (Ministry of Finance) should be the one to have this the vote holders, we are in the budget process, the first call should be on this UGX69.4Bn.”
Moses Aleper, Vice Chairperson, Finance Committee committed to see to it that the matter of unpaid water bills is discussed with Ministry of Finance stating, “I would wish to inform you that as a committee of finance, we are going to take this matter with treasury operations and make sure this matter is brought to light eventually.”
Remigio faulted the Ministry of Finance for failing to remit the money meant for water bill arrears directly to NWSC, and instead, entrusting it with MDAs, that end up diverting money to other items.
“You asked for UGX81Bn please, we accept the supplementary budget, but you can’t you send it (money) directly to NWSC. They say no, give it to the vote holders. You give it to the water holder and they decide to use money for a different purpose. We asked here rhetorically, is that possible? That means there is collusion. Who is that person who approves the exchange of money of water to be paid for something else? Well, that is the collusion. So, I think we need to put to them, commit as a committee of finance to come to the bottom of this,” added Achia.
