Airtel Uganda renews Buganda kingdom deal as data race with MTN heats up

Airtel Uganda has extended its partnership with Buganda kingdom for another three years as the country’s second-largest mobile operator seeks to reach more customers in central Uganda.

The renewed deal runs until 2028 and adds education, technology and income-generating projects to the areas the two sides already work on. They are also expected to cooperate on water projects and other development programmes. Neither side disclosed the value of the agreement.

Soumendra Sahu, Airtel Uganda’s managing director, said the company would make a major announcement this week about how it connects customers, including those in remote and island communities.

“This week, we will be announcing a major rise in the standards with which we connect our people to opportunities, from the remote coffee farmers to the isolated island communities of Buvuma,” Sahu said. He did not give details.

The renewal comes weeks after Airtel Uganda reported half-year results. Its profit after tax rose 13.9 percent to 224.7 billion Ugandan shillings ($60m) in the six months to June, and revenue grew 10.2 percent to 1.19 trillion shillings ($320m).

Data now makes up 51.1 percent of the company’s service revenue, ahead of voice. The number of Airtel’s data customers rose 18.8 percent to 8.9 million, and its total customer base grew 10 percent to 19.7 million.

Airtel still trails MTN Uganda. MTN reported 25.4 million mobile subscribers and 12.6 million data subscribers at the end of June.

Buganda’s links with Airtel are also commercial. The kingdom’s telecoms venture, K2 Telecom, has used Airtel’s network since 2018, with its customers keeping their own 0708 and 0709 number prefixes. That arrangement was renewed separately in December 2024.

Airtel is also the title sponsor of the Masaza Cup, the kingdom’s inter-county football tournament, which reached its 22nd edition this year. The company also sponsors the Kabaka Birthday Run, the Bika competitions, the Kabaka’s birthday and coronation anniversary celebrations, and Iftar events.

Sahu said the renewed partnership was in line with Situla Omutindo, or “Raise the Standard”, a campaign launched in February by Charles Peter Mayiga, the Katikkiro, or prime minister, of Buganda. The campaign builds on the kingdom’s decade-old coffee-growing drive and covers six areas: coffee and agriculture, trade and business, health, education, family welfare and talent development.

Robert Waggwa Nsibirwa, Buganda’s second deputy Katikkiro and finance minister, said the partnership should also address the quality and accessibility of technology services in the kingdom, calling for efforts to “raise the standard of technology services” available to its people.

Mayiga said the partnership had produced results in health and in developing sporting talent.

“Partnerships are living things; they must be nurtured, cared for and allowed to grow. As we renew this partnership, we look forward to expanding its horizons and pursuing bigger and better opportunities for the people we serve,” he said.

Airtel Uganda said the arrangement had given people in the kingdom access to its Airtel Money mobile financial services, internet and voice and data bundles.

Airtel Uganda is a subsidiary of Airtel Africa and is listed on the Uganda Securities Exchange.