Govt Seeks Parliament Approval to Write Off Shs2.3bn Kilembe Mines Debt

What the report says

The Ministry of Finance has asked Parliament to approve the write-off of Shs2.297 billion in unpaid mineral rent owed by Kilembe Mines Limited, a request tied to government’s broader effort to revive the long-idle copper mine in Kasese District. State Minister for Finance (Planning) Amos Lugoloobi presented the proposal to the Parliamentary Committee on Finance, Planning and Economic Development, alongside ministry officials.

According to the Nile Post report, the arrears built up between 2018 and 2024. The ministry said the move follows a recommendation from the Auditor General, who advised that the outstanding annual mineral rent be written off. The Finance Ministry also said it received a request from the Ministry of Energy and Mineral Development to abandon the government’s claim against the company. Lugoloobi told MPs that parliamentary approval is required because the decision would amount to writing off public revenue under the Public Finance Management Act.

Kilembe Mines was once one of Uganda’s main copper producers, but operations declined in the early 1980s and the site has remained largely dormant for years. The article notes that government signed a new mineral production sharing agreement in 2025 with a joint venture involving Sarrai Group, Nile Fibreboard and the Uganda National Mining Company, as part of renewed efforts to restart production. The proposed debt write-off does not itself restart mining, but it removes one outstanding issue in the wider revival process.