Overview:
While Uganda Railways Corp. narrows its financial losses to 17.05 billion shillings, the new board faces a critical mission to recover grabbed land and rehabilitate decaying tracks.
KAMPALA, Uganda — Former Energy Minister Daudi Migereko has assumed the chairmanship of the Uganda Railways Corp. board at a pivotal moment, as the state enterprise reports a 67 percent reduction in operating losses.
The corporation’s financial performance improved significantly over the last year, with operating losses falling to 17.05 billion shillings in the 2024-25 financial year from 51 billion shillings previously. Despite this progress, Migereko inherits a system still struggling with the effects of decades of neglect, vandalism and underinvestment.
Works and Transport Minister Katumba Wamala, who inaugurated the new board last week, challenged Migereko to sustain this momentum by enforcing strict accountability and ethical standards. Katumba emphasized that the government expects a harder line on governance issues that have historically weakened the corporation.
A primary focus for the new leadership will be the protection of railway assets. Katumba noted that the agency has suffered from extensive land grabbing, sometimes involving high-ranking officials. Securing land titles and defending boundaries is viewed as essential for the corporation to maintain its revenue base and operational space.
While financial losses are narrowing, infrastructure remains a hurdle. Managing Director Benon M. Kajuna reported that the railway is underutilized due to a lack of equipment, noting the corporation has only four active locomotives, with four others currently being rehabilitated.
The government is currently working with the African Development Bank to rehabilitate the meter-gauge line from Malaba to Kampala and the line to Gulu. Migereko said these investments are critical for Uganda to reduce the cost of doing business and better transport bulky raw materials as a landlocked exporter.
The board’s success will be measured by its ability to transition the railway from a state of decay into a reliable backbone for regional trade, eventually linking with the planned standard gauge railway system.