Kampala: The Ugandan government has received approval to acquire a pound 207.75 million loan from Citi Bank and other financial institutions for the design and construction of crucial roads in the Busoga region, including the Jinja-Mbulambuti-Kamuli-Bukungu road and Jinja City roads. This decision was announced following a parliamentary session where the motion was presented by the Minister of Finance, Planning and Economic Development, Hon. Henry Musasizi, on Thursday, September 3, 2026.
According to African Press Organization, the 127-kilometer Jinja-Mbulambuti-Kamuli-Bukungu road is a vital transport corridor that connects Busoga to Lake Kyoga in Teso, providing an alternative route between Northern and Southern Uganda. Minister Musasizi emphasized that this road links several districts across Lake Kyoga, with the terminal point at Bukungu acting as a gateway to Amolatar, Kaberamaido, Soroti, Nakasongola, and Kayunga districts. Additionally, the 10-kilometer Jinja city roads are expected to enhance trade and urban mobility, facilitating industrial transport in Uganda's primary industrial city, thereby boosting local trade.
The Committee on National Economy has recommended approval of the loan but stressed that the loan agreement should not be signed until the Ministry of Works and Transport completes the registration of all Project Affected Persons (PAPs). The Chairperson of the Committee, Hon. Jane Pacuto, noted that while land valuation was conducted in 2022 with compensation estimated at Shs112.8 billion, the report has neither been updated nor submitted. This delay poses a risk of project setbacks due to unresolved engagements with PAPs under the new policy.
The committee urged for a swift determination, approval, and disclosure of conclusive compensation amounts to ensure effective financing and minimize implementation delays. They emphasized that the Ministry of Finance should refrain from sourcing or committing to financing projects involving PAPs until resettlement impacts are fully assessed.
In a minority report, Hon. Hassan Kirumira from Katikamu County South objected to the loan request, insisting that compensation issues for PAPs should be resolved before signing the loan agreement. He warned that proceeding without mutual agreements could lead to increased project costs due to undisbursed loans. Kirumira also suggested exploring concessional loans, as commercial loans are costly and the country is already burdened by heavy debt.
Hon. James Waluswaka from Bunyole West County supported the loan approval but recommended removing the budget allocation for road design, which he claimed had already been completed by the ministry. Hon. Moses Walyomu from Kagoma County highlighted the potential boost to tourism in the Busoga region, with the road passing near attractions such as Busowoko and Itanda falls, thereby benefiting the tourism sector.