TOP STORY! Battle for control of Kampala-Entebbe Expressway toll system deepens

KAMPALA. The battle over who should collect tolls and manage Uganda’s only expressway is widening, with Parliament pushing for the removal of the current operator as a private company seeks government backing to introduce a new automated tolling system.

The dispute over the Kampala-Entebbe Expressway has so far centred on whether the existing tolling system can adequately account for money collected from motorists.

But behind the parliamentary investigation is a bigger question: who should control the lucrative tolling business and technology on a road that now handles far more traffic than initially projected?

Parliament’s Committee on Physical Infrastructure has recommended that the government terminate Pinnacle Security Ltd’s operation and maintenance contract, citing weaknesses in the tolling system that, it says, make it difficult to reconcile cash transactions and protect public revenue.

The committee wants the Ministry of Works and Transport to take over operation and maintenance of the expressway, while the Uganda Revenue Authority (URA) assumes responsibility for toll collection.

It has also called for a forensic audit of the tolling system used by French firm Egis Operations SA and later Pinnacle, including an investigation into Shs314.36 million reportedly linked to irregular free passes.

The recommendations come barely three months after Pinnacle formally took over the contract from Egis, which had managed the expressway’s technology and revenue operations.

The timing has raised a fresh commercial dimension to the dispute because another company, Samanga Utilities Ltd, has separately proposed to government that it modernise and automate toll collection on the expressway.

There is, however, no evidence that Samanga has been selected to replace Pinnacle or that the parliamentary inquiry was undertaken to create an opening for the company.

The proposal remains under consideration by government.

From subcontractor to operator

Pinnacle’s involvement with the expressway predates its assumption of the main contract.

The Ugandan company worked with Egis for several years, supplying toll collectors, patrolling the highway, responding to accidents and providing security.

Egis handled the technology and supervised revenue operations.

When Egis decided to exit the project after reporting heavy losses, it identified Pinnacle as its preferred successor.

The transition began in late 2024, following meetings between Egis and Ugandan government officials in France and Kampala.

On October 10, 2025, Egis formally asked the Ministry of Works and Transport to transfer its operation and maintenance contract to Pinnacle.

In the letter, Egis chief executive Patrick Viellard said Pinnacle had supported the project from the proposal stage in 2019 and had accumulated the experience required to take over the operation.

Egis also offered to transfer its employees and provide access to the tolling technology under a service-level agreement.

Following guidance from the Solicitor General and clearance from the Attorney General, the government, Egis and Pinnacle signed a novation agreement on May 8, 2026.

The agreement transferred the contract and its associated liabilities to Pinnacle, making the local company the principal operator of the expressway.

The arrangement is now under scrutiny.

Revenue questions

Presenting the committee report, its chairperson, Mr Mwine Mpaka, said the existing system could not produce reliable historical statements for vehicles whose drivers paid cash.

The committee cited a Works Ministry internal audit that reportedly identified 93 vehicles captured on closed-circuit television paying and passing through a toll point but missing from the toll system records.

The lawmakers said the discrepancy weakened the audit trail and created a risk of revenue leakage.

The committee also cited 10,446 vehicles that it said could not be reconciled across November 2024, December 2025 and May 2026, with suspected shortfalls exceeding Shs1 billion.

Pinnacle disputes the interpretation of the data.

Mr Ivan Katamba, speaking for the company, said some of the apparent discrepancies could have resulted from differences in the periods used to analyse traffic.

He said the operator’s accounting day runs from 6am to 6am the following day, while an audit based on a midnight-to-midnight period could shift some transactions into different dates.

“The operator believes the Parliament Committee interpretation of the data is flawed and sought reconciliation with them on how it is being analysed,” Mr Katamba said.

Pinnacle has also rejected suggestions that it controls or retains toll revenue.

According to the company, all toll collections are deposited daily into a government account controlled by the Ministry of Works and Transport.

The company says it does not retain money at the toll point or determine how the government eventually uses the collections.

It also says the ministry has real-time access to raw toll transaction data and conducts independent daily checks through the Independent Traffic Monitoring System.

Pinnacle has offered to subject its revenue controls and tolling system to an independent review.

The automation question

The controversy comes as government considers a proposal by Samanga Utilities Ltd to automate and modernise toll collection.

Official correspondence describes Samanga as a Tanzanian group.

The company has proposed a number of infrastructure projects, including an alternative internet route connecting Uganda through Tanzania and digital infrastructure along electricity and petroleum pipeline corridors.

Its proposal also includes automation of toll collection on the Kampala-Entebbe Expressway.

President Museveni directed Prime Minister Robinah Nabbanja and relevant ministers to study the proposals and recommend a way forward.

“Finally, they also proposed automating the collection of the tolls on the Entebbe Expressway,” the President said in the directive.

The Ministry of ICT and National Guidance subsequently instructed the National Information Technology Authority-Uganda to prepare a report on the proposals, including the toll automation component.

The matter is expected to be considered through a government coordination process led by the Prime Minister.

There is currently no indication that Samanga has received a contract, gone through a procurement evaluation or been selected as a replacement for Pinnacle.

But the proposal has introduced a new question into the controversy: if Pinnacle is removed, what system will replace it and who will operate it?

Who controls the system?

Part of the challenge lies in the technology inherited by Pinnacle from Egis.

Pinnacle says the existing platform was designed as a largely manual system supported by electronic Upesi cards, rather than a fully automated tolling operation.

Even electronic card transactions require intervention by toll personnel, according to the company.

The source code for the platform is also legally owned by Egis. Pinnacle has conditional access, while the Ministry of Works and Transport has read-only access.

That arrangement could strengthen the case for modernising the tolling system.

But modernisation does not necessarily require terminating the existing operator.

If government decides to introduce a new technology provider, it will face questions similar to those now being raised about Pinnacle: whether the procurement is competitive, whether the provider has the required technical capacity, what the costs will be and whether the arrangement offers value for money.

Ministry seeks time

The parliamentary recommendation has also created a procedural dilemma for the government.

Hoima City Woman MP Asinasi Nyakato urged Parliament to adopt the committee report without further debate.

Works and Transport Minister Fred Byamukama, however, asked for more time to study the findings and prepare a comprehensive response.

The ministry participated in the inquiry, alongside officials and former Uganda National Roads Authority employees.

The minister’s position highlights the possible legal, financial and operational consequences of abruptly ending a contract that was signed only months ago following legal advice and clearance from government lawyers.

Pinnacle says its takeover from Egis was undertaken with the guidance of the Solicitor General and clearance from the Attorney General.

Any premature termination could therefore trigger questions about contractual liabilities, continuity of services and the process for appointing another operator.

A valuable public asset

The stakes are high because the expressway has become a significant revenue-generating public asset.

Traffic has grown beyond the initial projections, with daily volumes reaching about 28,000 vehicles compared with an initial projection of 18,447.

The road generated average monthly toll collections of about Shs3.7 billion by early 2025, while collections reached Shs119.8 billion during its first three years of tolling.

The parliamentary inquiry therefore goes beyond a disagreement over accounting records.

At its heart is a debate over how government should manage an increasingly important public asset, how toll revenues should be protected and whether Uganda should move from a largely manual system to automated collection.

For Parliament, the immediate priority is plugging what it sees as weaknesses in revenue accountability.

For government, the challenge is to determine how to implement any changes without disrupting operations or exposing the taxpayer to unnecessary contractual costs.

For private companies, the expressway represents a growing commercial opportunity as traffic and toll collections increase.

The outcome of the dispute could consequently determine not only Pinnacle’s future but also who controls the technology and revenue collection system on the expressway in the years ahead.