Government Allocates Shs8.79 Trillion for Transport Infrastructure in New Budget

By Samuel Ssenono

Government has allocated Shs8.79 trillion for transport infrastructure development in the 2026/27 financial year, with roads, railways, airports, bridges, ferries and Uganda Airlines listed among the priority areas.

Finance Minister Henry Musasizi said the money will support construction of the Malaba-Kampala Standard Gauge Railway, completion of rehabilitation works on the Metre Gauge Railway, construction and maintenance of roads and bridges, development of water transport systems, operationalisation of Kabalega International Airport, upgrading of regional aerodromes and expansion of Uganda Airlines.

According to the Budget Speech, government continued construction of 24 major roads totalling about 1,154 kilometres during the 2025/26 financial year. It also rehabilitated 949 kilometres of national roads and continued work on 14 strategic bridges.

The minister said over 7,400 kilometres of paved roads and 14,000 kilometres of unpaved roads were maintained through labour-based contracts. A further 1,282 kilometres of paved roads and 3,146 kilometres of unpaved roads were maintained under routine mechanised maintenance.

Government also opened 124 kilometres, graded 175 kilometres and gravelled 64 kilometres of District and Community Access Roads using Force Account. Local governments maintained 2,700 kilometres of District and Community Access Roads, upgraded and maintained 820 kilometres of city and municipal roads, and rehabilitated 120 kilometres of district roads.

In the Greater Kampala Metropolitan Area, government says it is working to upgrade more than 600 kilometres of roads over the next five years and maintain major existing roads. So far, 297 kilometres of roads have been paved, several roads rehabilitated, and eight major junctions signalised to improve traffic flow and road safety.

On railway transport, government says construction of the 273-kilometre Malaba-Kampala Standard Gauge Railway has commenced. Upon completion, container transport costs from Mombasa to Kampala are projected to reduce from about USD3,500 to about USD1,600, while transit time is expected to fall from five days to one day.

The rehabilitation of the Tororo-Gulu Metre Gauge Railway has reached 66 percent, while the Kampala-Mukono section has been completed.

Government also reported progress in water transport. It says 15 ferries have been constructed, maintained and operated to connect island communities to markets and services. The Buyende-Kagwara-Kaberamaido ferry has started operations, while two ferries on Lake Bunyonyi are under construction and expected to begin service by June 2027. Preliminary works for Bukasa inland port are nearly complete.

In aviation, physical works at Kabalega International Airport are complete. Government is now finalising operational requirements to prepare the airport for First Oil and AFCON 2027.

Construction of Kidepo International Airport is underway to boost tourism in Karamoja. Phase One of Entebbe International Airport’s rehabilitation and expansion has also been completed, with a new passenger terminal and expanded cargo facility. Passenger terminal capacity has increased from 2 million to 3.5 million travellers per year.

The Budget Speech also says 12 regional aerodromes have been maintained to support regional connectivity for tourism and trade.

Government has also listed Uganda Airlines among critical transport infrastructure. Musasizi said the airline is being strengthened to improve international connectivity for tourism, trade, investment and the diaspora. He said government will further capitalise the airline through acquisition of eight additional passenger aircraft.