Kyambogo University Faces Scrutiny Over Shs 2 Billion Printing Contract

A recent investigation by the Public Procurement and Disposal of Public Assets Authority (PPDA) has revealed significant financial irregularities at Kyambogo University, involving over Shs 2 billion in payments for printing services that were not fully utilized. The PPDA report, dated July 13, 2026, identified that the university paid MFI Document Solutions Ltd based on minimum monthly printing volumes stipulated in their contract, rather than the actual number of pages printed.

This contractual arrangement led to substantial excess payments. For black-and-white printing, Kyambogo paid Shs 2.26 billion, while the services were valued at approximately Shs 1.42 billion, resulting in an overpayment of Shs 842.87 million. Similarly, Shs 2.23 billion was paid for colour printing services worth about Shs 1.02 billion, creating an excess payment of Shs 1.21 billion. In total, the university incurred a financial loss of Shs 2,042,985,617 due to these unfavourable terms.

The investigation has placed the University Secretary, Arthur Katongole, under scrutiny as the accounting officer responsible for managing the contract and its subsequent renewal. The PPDA report stated that the renewal of the contract with MFI Document Solutions Ltd, which began in October 2021, breached procurement regulations. The university’s Contracts Committee had previously advised against renewal, recommending a fresh competitive bidding process.

Despite these recommendations and concerns raised internally about minimum printing obligations and alleged over-invoicing, Katongole reportedly renewed the contract. The PPDA has ordered Kyambogo University to terminate the current contract within one month and initiate a new procurement process in accordance with the law. The case highlights potential risks of minimum volume clauses in public contracts, which can lead to public funds being paid for services not received.

Source: The Observer (Uganda)