Parliament Approves EUR207.74 M Loan for Strategic Jinja-Kamuli-Bukungu Road

What the report says

Parliament in Uganda has approved the government’s plan to borrow up to EUR207.74 million from Citi Bank and other financial institutions to fund road works in eastern Uganda, according to Nile Post. The package covers the design and construction of the 127-kilometre Jinja-Mbulamuti-Kamuli-Bukungu road, along with a separate 10-kilometre road project in Jinja City.

The motion was brought to Thursday’s plenary by Finance Minister Henry Musasizi, who told lawmakers the route is an important connection from Busoga to Amolatar and Teso, with Bukungu in Buyende District serving as a link. The report from the Committee on National Economy, presented by chairperson Jane Pacuto, supported the borrowing but urged the ministry to follow the Public Debt Management Framework 2023 and keep borrowing and debt-service costs as low as possible.

A minority view from Katikamu South MP Hassan Kirumira opposed the loan, arguing that the commercial terms would not be favourable for taxpayers. That position was rejected by the majority, who backed the project as a strategic investment in regional trade, mobility and wider socio-economic development.

The road is expected to improve travel time, ease movement of people and goods, and open access to hard-to-reach areas around Buyende and the islands beyond. In general, such transport projects are often seen as key to connecting farming and trading communities to larger markets, though the specific economic gains will depend on implementation and financing costs.