COSASE grills URC over mounting losses, missing wagons, and underutilized assets

The Parliamentary Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) has sharply questioned the Uganda Railways Corporation (URC) over persistent financial losses, an alarming number of missing wagons, and a substantial amount of underutilized railway assets. These concerns were raised during an oversight visit where MPs undertook a train journey from Kampala to Mukono to personally assess issues highlighted in the Auditor General’s 2025 report.

COSASE Chairperson Muwada Nkunyingi stated that the inspection aimed to evaluate the condition and functionality of URC’s assets before engaging management. “We are interrogating all this because the Auditor General observed that Uganda Railways Corporation is making losses whereas the government has injected and invested a lot of money,” Mr. Nkunyingi explained.

The committee noted that the Auditor General’s report identified several wagons that are unaccounted for and cannot be traced. During their assessment, MPs inspected various assets including locomotives, coaches, and wagons. They also visited the Goods Shed inland depot in Kampala, which was found to be non-operational, and a depot in Mukono that, while functional, suffers from staffing shortages. The lack of Uganda Revenue Authority (URA) presence at the Mukono depot was cited as a factor that could push businesses towards private alternatives.

URC Managing Director Benon Kajuna attributed the corporation’s financial woes largely to underinvestment and the severe deterioration of infrastructure following the collapse of a railway concession in 2018. He indicated that URC inherited a massive maintenance backlog and that the current fleet of only four locomotives, which are frequently inoperable and difficult to repair due to a lack of spare parts, significantly hinders operations. This situation forces the use of two poorly performing locomotives to haul a mere five coaches, drastically increasing operational costs, particularly fuel consumption.

Despite these challenges, Mr. Kajuna mentioned plans to procure 10 new locomotives and 100 freight wagons. URC is also preparing to manage services for the upcoming Africa Cup of Nations (AFCON) in 2027, with government funding allocated for station upgrades and park-and-ride facilities. However, securing additional funds for the lease of 20 coaches remains a priority.

The committee intends to seek further explanations from URC management to formulate recommendations for revitalizing the railway system. The potential of rail transport to alleviate traffic congestion for both passengers and cargo was evident during the Kampala-Mukono train journey, underscoring the need for a fully functional network.

Source: https://www.monitor.co.ug/uganda/news/national/cosase-questions-urc-over-losses-missing-wagons-and-idle-assets-5558390