Politics 6 May 2026 The Observer (Uganda)
Parliament Approves Shs 1.1 Trillion Supplementary Budget Amid Atiak Sugar Controversy
Ugandan MPs have greenlit a Shs 1.105 trillion supplementary expenditure just before the 2025/2026 financial year ends, including funds for police, health workers, elections, and more. The approval reignites debate over extra funding for the Atiak Sugar Factory project. Source: https://observer.ug/news/its-atiak-sugar-again-as-mps-approves-shs-1-1-trillion-supplementary-expenditure
Parliament has passed a massive Shs 1.105 trillion supplementary budget, weeks ahead of the 2025/2026 financial year closure. State Minister for Finance Henry Musasizi presented the request, stressing that the funds could not wait for the next fiscal period starting soon.
The budget draws from reallocations, extra non-tax revenue, external loans, and better cash management savings. Key recipients include the Uganda Police Force with Shs 132.9 billion for debts, Shs 107.52 billion for wages, pensions, and gratuities, and Shs 72.9 billion for the World Bank-funded GROW project supporting women enterprises.
Other allocations cover Shs 40.21 billion for new health workers’ wages in 19 regional hospitals, Shs 56.95 billion for local council and women committee elections per Cabinet orders, Shs 29.57 billion for 2027 AFCON preparations, and Shs 23.21 billion for schools under the UGIFT program.
Funding sources feature Shs 40.21 billion from internal shifts, Shs 6.25 billion in new non-tax collections, Shs 72.9 billion externally, and Shs 985.8 billion from efficiency gains.
Debate heated up over Shs 100 billion more for Atiak Sugar Factory, where government has sunk over Shs 668 billion already. Industry Minister David Bahati backed it, promising first sugar output by September 2026, economic boost for northern Uganda, jobs, and irrigation against weather risks.
Opposition Leader Joel Ssenyonyi slammed the move as potential taxpayer fraud, demanding accountability for past investments without production. Shadow Finance Minister Ibrahim Ssemujju highlighted a recent April approval of similar funds and criticized the deal favoring private investor Amina Moghe Hersi, who holds 60% with Shs 125 billion invested versus government’s looming Shs 768 billion for 40%.