Matia Kasaija (2nd Left), Uganda’s Finance Minister and Katumba Wamala, Minister for Transport, appearing before Parliament’s National Economy Committee
NRM MPs have clashed over Uganda’s rising public debt as Government moves to borrow UGX69.02bn for the construction of the Nebbi-Goli Road.
This was during a meeting held between Parliament’s National Economy Committee and Ministry of Finance, as well as Ministry of Works and Transport to consider the US$20Million (UGX69.02bn) by Arab Development Bank of Economic Development (BADEA) for the construction of the Nebbi-Goli Road, on 15th October 2025.
Charles Tebandeke (Bbale County) protested the increasing consumption of loans by Government amidst skyrocketing debt was met with mixed reaction by his counterparts in ruling National Resistance Movement (NRM), who deemed his protest misplaced and hypocritical given that the loans were approved by Parliament as part of the UGX72.38Trn for the 2025/26 national budget.
“We are borrowing the money as if we are dying, as if Uganda is withering tomorrow. When you look at the debt ratio in line with the interest Ugandans are supposed to pay and the extent of performance of the loan this parliament is passing and the recovery means, they are not telling, they are not matching. I am wondering why cabinet is bringing a sequence of loans at a time when we are nearing election, parliament will not have even enough time to do oversight. The agencies are not also in a position to perform to the expectations of Ugandans. Why are we rushing? Why are we subjecting Ugandans to such a deeper debt payment of loans that are not performing to the expectation?” remarked Tebandeke.
His concerns come at the time when the Annual Debt Statistical Bulletin and Public Debt Portfolio Analysis June 2025 compiled by the Directorate of Debt and Cash Policy at Ministry of Finance that was published recently revealed that Uganda’s debt as at June 2025 had grown to UGX116.2Trn, of which external debt amounted to UGX55.9 trillion (US$15.5 billion) while domestic debt rose to UGX60.3 trillion (US$16.8 billion), thus accounting for a 26.2% increase of debt acquired in a single year, up from US$25.6Bn (UGX 89.592Trn) recorded in June 2024.
However, Tebandeke’s concerns on skyrocketing debt saw Henry Kibalya (Bugabula South) put him to order accusing him of misrepresenting the law saying his procedural matter wasn’t cited based on the correct rules of procedure of Parliament and tasked him to express his concerns about the loan by authoring a minority report.
“The applicability is wrong. What is the mandate of the committee? It’s not to apply that role. The committee has one duty to look at the loan, either reject or receive. After receiving, you either pass it or have a minority report. Is it in order for a colleague to raise a rule which he knows very well that cannot apply in the committee but he has the duty or is he free to come up with a minority report and the point he has raised would be the best point to be raised in a minority report,” argued Kibalya.
While ruling on Tabandeke’s procedural matter, Bosco Ikojo, Chairperson, Parliament’s Committee on National Economy defended the Committee’s stance arguing that it is the duty as members of parliament of this committee to scrutinise all loans and went on to remind Tebandeke that the loans were part of the loans that Government projected to borrow to fund the national budget.
“We are not the approving committee. It is the house that approves the loan. It is the same members of parliament. We are the ones who will pass the budget and most of these loans are financing the budget that we passed in the house. So, it’s not at this time that we’re supposed to begin saying we should have rejected it at the time at the budgeting time. So, I don’t see the applicability of what you’re raising,” said Ikojo.
It should be recalled that to fund the UGX72.376Trn national budget, Government intends to borrow UGX32.075Trn which is equivalent to 44.3% of the national budget while UGX34.051Trn will be raised through tax revenue collections by Uganda Revenue Authority.
The Minister of Finance, Matia Kasaija informed the Committee that the total estimated cost of the project is US$23Million with BADEA providing a loan of US$20Million and Government of Uganda providing counterpart funding of US$3Million respectively.
The counterpart funding will cover land acquisition, audit fees and contingencies and the loan will be paid in 20years including the 5year grace period and it will attract an interest rate of 2.5% per annum on principal amount per loan amount withdrawn, terms that Alex Byarugaba (Isingiro South) described as favourable for Uganda.
Minister Kasaija defended the Nebbi-Goli Road loan, saying it is intended to support Uganda’s continued development by improving access to social infrastructure, facilitating cross-border trade and reinforcing regional integration and the project aims to achieve this by improving the stock and the quality of road transportation to the project area, resulting in reduced transportation costs.
“The existing Nebi-Goli road does not adequately serve the transport demand for trading activities across the border crossing at Goli and access to Zombo district. The poor condition of the road has resulted in high transportation costs, frequent accidents and reduced cross-border trade,” Kasaija said, adding: “The project development objective is to provide an all-weather road between Nebbi town and Goli border crossing with the aim of improving access in North Western Uganda and providing a reliable connection to Democratic Republic of Congo.”
