Uproar as government agencies, Uganda Airlines owe UCAA Shs234b

The Uganda Civil Aviation Authority (UCAA) is struggling to recover nearly Shs234 billion owed by government agencies and Uganda Airlines, prompting Members of Parliament to question the authority’s ability to collect its revenues and finance critical aviation infrastructure.

Appearing before Parliament’s Committee on Physical Infrastructure on Thursday, UCAA officials disclosed that outstanding debts had risen to Shs233.9 billion, up from Shs136 billion reported by the Auditor General in December 2025—an increase of almost Shs100 billion in just six months.

The largest debtors are government Ministries, Departments and Agencies (MDAs), which owe Shs91.68 billion, while the national carrier, Uganda Airlines, owes Shs91.78 billion.

The sharp increase alarmed legislators, who warned that continued non-payment by public institutions could undermine UCAA’s financial sustainability and its ability to maintain and expand aviation infrastructure.

Committee chairperson Mwine Mpaka (Mbarara South) questioned how the debt had escalated so rapidly.

“As of December 2025, according to the Auditor General, your debt was Shs136 billion. Within about six months, it has increased by almost Shs100 billion. What will happen by December this year?” he asked.

Kapelebyong District Woman MP Jacinta Atuto challenged UCAA to produce a detailed debt recovery plan, saying continued accumulation of arrears pointed to weaknesses in enforcement and revenue collection.

She asked the authority to provide timelines for recovering the money instead of relying on general assurances that engagements with debtor institutions were ongoing.

Bukanga North MP Nathan Byanyima also questioned why the Ministry of Works and Transport—UCAA’s supervising ministry—and the Ministry of Foreign Affairs were among the entities owing the authority money.

He urged UCAA to openly explain the challenges it faces in compelling government institutions to settle their obligations, saying this would strengthen its case for additional funding.

UCAA officials said they were engaging the Ministry of Works and Transport and pursuing formal service agreements with government entities to improve payment compliance.

However, committee members said those efforts would not be sufficient without a concrete recovery strategy.

The authority, established under the Civil Aviation Authority Act, regulates Uganda’s civil aviation sector, manages Entebbe International Airport and provides air navigation, aviation security and airport infrastructure services.

Unlike many government agencies that rely on direct budget financing, UCAA depends largely on revenue generated from user charges and service fees to fund its operations and infrastructure development.

Lawmakers warned that failure by government institutions to honour their obligations could constrain planned investments in airport expansion, aviation safety and Uganda’s ambitions to strengthen Entebbe International Airport as a regional aviation hub.

The committee also sought clarification on the health of UCAA Director General Fred Bamwesigye following reports about his absence from duty.

Deputy Director General Olive Birungi Lumonya said Mr Bamwesigye remains in office and continues to perform his duties while receiving medical treatment.

She said there had been no year-long absence and that the authority’s operations were continuing without disruption.

Parliament’s committee directed UCAA to prepare a comprehensive debt recovery roadmap, signalling closer scrutiny of the authority’s financial management and the growing problem of unpaid government obligations.