Government has announced that no new road projects will be undertaken in the 2026/27 financial year, as the Ministry of Works and Transport shifts focus to completing ongoing infrastructure works due to budget constraints.
The decision was revealed by Works and Transport Minister Edward Katumba Wamala while presenting the Ministerial Policy Statement before Parliament’s Committee on Physical Infrastructure.
Officials from the Ministry of Works and Transport said the move is driven by a significant funding gap, with only Shs690.5 billion allocated for infrastructure projects against a requirement of Shs2.3 trillion.
“The Ministry is saying, let us finish ongoing projects as a priority. Let us get enough money to pay for land acquisition because we have contracts where we have a contractor on site and he has no access to land,” Katumba told lawmakers.
He emphasised that unresolved land compensation issues and unpaid contractors have slowed progress on several projects across the country.
“Now we are saying no, let us prioritise land acquisition for the projects so that the contractor does not have any reason why he should not deliver. Three; let us pay all these backlog areas because they are attracting interest, free money going, let us pay them, clear them,” he added.
The policy shift comes amid growing concern over delayed and stalled projects, including key road works such as the Mityana–Mubende highway, which has faced setbacks linked to compensation disputes and funding constraints.
According to Edward Ssimbwa, out of 67 projects currently under implementation, 28 have experienced delays while 13 have been abandoned or suspended.
“This implies that even the current budget given to us is insufficient to clear arrears and work within our required budget. If these arrears are not cleared, they will continue to incur interest, and we expect this position to further increase,” Ssimbwa said.
He noted that the decision is in line with guidance from the Ministry of Finance Planning and Economic Development directing government entities to halt new projects and prioritise the clearance of domestic arrears, with sanctions for non-compliance.
The Ministry closed the 2024/25 financial year with arrears amounting to Shs1.489 trillion. Of this, Shs541 billion has been paid in 2025/26, leaving an outstanding balance of Shs948 billion.
“We further expect to receive Shs218.456 billion once these arrears are released by the Ministry of Finance in the next quarter. However, in 2026/27, the Ministry is yet to receive a specific allocation for arrears clearance,” Ssimbwa added.
Despite the constraints, the Ministry’s overall budget has increased to Shs6.573 trillion for 2026/27, up from Shs5.920 trillion in the previous financial year, largely driven by planned investments such as the Standard Gauge Railway.
However, the ministry acknowledged that significant funding gaps remain across key priorities including national road rehabilitation, urban roads, drainage systems, ferry services and street lighting.
The shift shows the government strategy to consolidate existing infrastructure investments, rein in rising debt obligations and improve efficiency in project execution before embarking on new developments.
Winston Katushabe, Commissioner of Transport Regulation and Safety also provided an update on the implementation of the digital number plates, revealing that the Ministry of Works and Transport has so far installed 218,781 digital plates on motorcycles and 71,472 digital plates on vehicles and refuted reports of shortage of number plates in Uganda.
“One of the challenges the supplier was having recently was in terms of transporting these other components, but at the moment, they assured us that the stocks are adequate. I think in the course of this week our team is also going to inspect and confirm what is available,” Katushabe said.
