Kyambogo University Faces Scrutiny Over Shs 2 Billion Printing Contract Scandal

An investigation by the Public Procurement and Disposal of Public Assets Authority (PPDA) has uncovered a significant financial irregularity at Kyambogo University, involving payments exceeding Shs 2 billion for unused printing services.

The PPDA’s report, dated July 13, 2026, revealed that the university paid MFI Document Solutions Ltd based on stipulated minimum monthly printing volumes rather than the actual number of pages printed. This arrangement led to substantial payments for underutilized capacity.

Specifically, the university paid an estimated Shs 4.53 billion against contracted minimum volumes. However, the actual printing services consumed were valued at approximately Shs 2.49 billion, resulting in an identified financial loss of Shs 2.04 billion due to what the PPDA termed “unfavourable contractual provisions.”

This loss represents funds paid without equivalent services being received, potentially impacting the university’s resources for education, research, and student welfare.

The investigation has also placed University Secretary Arthur Katongole, the institution’s accounting officer, under scrutiny for his role in managing and renewing the contract. Katongole stated he is preparing a comprehensive response to the PPDA’s findings.

The contract with MFI Document Solutions Ltd began in October 2021, with concerns about its value for money and payment terms raised internally as early as August 2025. Despite advice against automatic renewal, the whistleblower alleged that Katongole renewed the contract without proper approvals.

The PPDA concluded that the contract renewal breached procurement regulations, as the services did not qualify for renewal and necessary authorizations were not obtained. Executive Director Canon Benson Turamye has ordered the termination of the contract within one month and mandated a new competitive procurement process.

The case highlights broader issues concerning public contracts that guarantee minimum business volumes, potentially leading to taxpayer-funded payments for unutilized services. The university must now address the termination timeline, initiate competitive bidding, and determine accountability for the financial loss.

Source: The Observer (Uganda)