Overview:

The clay products manufacturer is now executing a 10-year strategic roadmap to modernize operations, diversify its product offerings, and expand across East Africa.

Uganda Clays Limited (UCL) is turning financial turbulence into a bold, long-term transformation plan, setting its sights on regional dominance despite posting a deepened net loss of UGX 4.95 billion in 2024—up from UGX 2.85 billion in 2023.

While the headline numbers suggest a company in distress, UCL’s leadership sees a turning point rather than a collapse. The clay products manufacturer is now executing a 10-year strategic roadmap to modernize operations, diversify its product offerings, and expand across East Africa.

“We’ve turned a critical corner,” said Eng. Martin Kasekende, UCL Board Chairman. “These losses don’t define our future—they mark the reset. We are no longer reacting; we’re building deliberately, with a clear destination.”

The losses were primarily driven by rising operational and financing costs, including interest expenses that surged from UGX 1.8 billion to UGX 3.2 billion due to a full-year impact of a UGX 20 billion loan from the National Social Security Fund (NSSF). However, Kasekende insists the company is far from being cornered.

“The NSSF loan is a noose, but not a dead end,” he said, revealing that restructuring has already begun and discussions around converting the debt into equity through external partnerships are ongoing.

Meanwhile, UCL’s revenue inched up from UGX 30.4 billion to UGX 31.6 billion in 2024, and demand for clay products remains steady, suggesting the market fundamentals remain strong even as profit margins tighten.

A Three-Phase Blueprint

UCL’s revival is anchored in a phased strategy:

  • Turnaround (2024–2025): Focuses on stabilizing operations, cutting costs, and restoring profitability.
  • Repair (2025–2027): Prioritizes plant automation, process efficiencies, and workforce upskilling.
  • Aggressive Growth (2027 onward): Will see product diversification and geographic expansion into new East African markets.

Managing Director Reuben B. Tumwebaze says the company is already seeing early wins. “We’ve digitized our logistics, secured over 140 acres of clay reserves—up from just 2.5—and acquired new kilns and extruders that will support innovative, affordable walling solutions.”

One of the flagship projects is the modernization of the Kajjansi factory, where a high-capacity Italian tile production line is being installed. Expected to be operational by late 2025, the new line will triple production, shorten turnaround times, and allow UCL to enter the premium architectural segment.

Beyond physical upgrades, UCL is eyeing regional growth. With construction booms in Rwanda, South Sudan, eastern DRC, and western Kenya—but limited local manufacturing of high-quality clay products—Tumwebaze sees a regional gap UCL is ready to fill.

“We don’t just want to build homes—we want to help build East Africa,” he said. “From affordable housing materials to high-end finishes, we’re designing products for every income level.”

UCL is also laying the groundwork to enter the ceramic tile, granite, and eco-friendly building materials space, aligning with global sustainability and urbanization trends.

Internally, the company is investing in staff development, fair wages, and greener operations. With more competitive pay and training programs in place, UCL is positioning itself as both an employer of choice and a responsible manufacturer.

“This transformation is not just about machines or markets—it’s about people, values, and a sustainable future,” Kasekende said. “The red ink is temporary. What we’re building is lasting value—for investors, for workers, and for East Africa.”