news 26 August 2026 Daily Monitor (Uganda)
Nakawuka Road Project: Officials Arrested in Shs700 Billion Compensation Fraud Scandal
Two Ministry of Works and Transport officials have been arrested amid an investigation into a multi-billion shilling scam involving inflated land compensation for the Kisubi-Nakawuka road project. Investigations revealed fraudulent claims including fake graves and unfinished structures. Source: https://www.monitor.co.ug/uganda/news/national/fake-graves-wooden-high-rises-exposed-in-shs2b-per-acre-nakawuka-road-valuation-scam-5572444
Officials from Uganda’s Ministry of Works and Transport are facing serious allegations of corruption following the uncovering of a massive scam related to land compensation for the Nakawuka road project. The ongoing investigation has already led to the arrest of a senior land valuer and a surveyor.
According to the Minister for Works and Transport, Mr. Fred Byamukama, the suspects are accused of collaborating with local land brokers to artificially inflate compensation claims. The minister highlighted a stark discrepancy in land valuation, stating that while land in Mpigi District typically costs around Shs35 million per acre, claims have been submitted for as high as Shs2 billion per acre.
The crackdown was prompted by intelligence and complaints from local residents, revealing elaborate schemes designed to defraud the government of billions of shillings. Investigators have discovered numerous instances of cosmetic construction, including buildings that are painted and finished on the outside but remain unplastered internally. Some unfinished house shells were reportedly fitted with doors and windows to appear developed.
In a particularly audacious move, investigators are also probing reports of fake graves being dug in Membe village to inflate compensation figures. The minister described these actions as a blatant attempt to steal public funds and vowed that those involved would face prosecution. A list of nine other ministry staff members, both current and former, are reportedly under scrutiny, along with several suspected land brokers who have since fled.
The total cost of the road project, which spans 72.5 kilometers, includes a Shs340.5 billion construction contract and an initial land acquisition budget of Shs430 billion. However, Minister Byamukama warned that fraudulent valuations could push the compensation costs to nearly Shs700 billion, significantly exceeding projections and highlighting the need for stricter controls.
To date, Shs139 billion has been paid to 1,093 out of 5,115 Project Affected Persons. The minister assured genuine claimants that payouts would continue promptly, with disbursements for customary land rights holders set to begin next week.
Local leaders have expressed disappointment over the delays but commended the ministry’s efforts to combat corruption. They urged the contractors to expedite the roadworks, with a directive to have tarmac laid by December.