Business 24 March 2026 Daily Monitor (Uganda)
Uganda Secures Shs422 Billion Loan for 10 New Uganda Airlines Aircraft
The government has obtained Shs422.26 billion through borrowing to purchase 10 new planes for Uganda Airlines, addressing fleet shortages that have disrupted international routes. This funding, part of a larger supplementary budget approved last year, aims to boost the airline's capacity amid rising fiscal pressures. Source: https://www.monitor.co.ug/uganda/business/markets/govt-secures-shs422b-to-buy-10-planes-for-uganda-airlines--5401954
The Ugandan government has finalized Shs422.26 billion in funding to expand Uganda Airlines’ fleet with 10 new aircraft. This allocation comes from a Shs1.696 trillion supplementary budget approved last year and is detailed in the Ministry of Finance’s February economic performance report.
Uganda Airlines has struggled with a limited number of planes, leading to operational issues on long-haul routes to Europe, Asia, and the Middle East. Maintenance delays and technical problems have forced temporary route suspensions, prompting a short-term lease of a Boeing Dreamliner from Ethiopian Airlines.
The new aircraft will enhance route reliability, increase flight frequency, and support growth in passenger and cargo services. Officials view the national carrier as key to boosting trade and tourism.
This borrowing contributed to February’s net government borrowing of Shs1.22 trillion, surpassing the Shs985.85 billion target. Expenditures on grants, including airline payments, and interest rose above projections.
Meanwhile, revenues underperformed at Shs2.61 trillion against a Shs2.88 trillion goal, due to weak indirect taxes, lower non-tax collections, and delayed grants. Spending reached Shs3.39 trillion, with overruns in grants and interest payments.
Source: Daily Monitor (Uganda)