law 28 August 2026 The Observer (Uganda)
Attorney General cautions Parliament against terminating Entebbe Expressway toll contract
Uganda's Attorney General has cautioned Parliament against prematurely terminating the contract of EGIS Road Operation S.A., the private operator managing the Entebbe Expressway. Termination without due process could lead to costly international arbitration, the AG's office warned. Source: https://observer.ug/news/attorney-general-warns-against-terminating-contract-of-entebbe-expressway-toll-operator
Parliament’s committee on physical infrastructure had recommended the immediate termination of French company EGIS Road Operation S.A., which handles toll collection and maintenance for the Kampala-Entebbe Expressway. The committee cited EGIS’s failure to fully implement several contractual obligations, including road safety improvements and traffic monitoring systems, as grounds for their recommendation.
However, Deputy Attorney General Jackson Karugaba Kafuuzi advised that terminating a valid contract requires establishing persistent breaches and adhering to the contract’s specific procedures. This involves formally notifying the operator of any breaches and providing a 14-day period for them to rectify the issues. Kafuuzi suggested a comprehensive assessment to determine if EGIS’s alleged failures meet the contractual threshold for termination, rather than immediate dismissal.
The Attorney General’s office also addressed concerns regarding a contract extension for Pinnacle Security Limited, disputing claims of illegality. They stated that the extension was provided for within the original agreement and did not require separate legal clearance as it was a ‘no-cost extension’. Furthermore, the proposal for the Uganda Revenue Authority (URA) to take over toll collection faces legal challenges, as the Roads Act designates this responsibility to the Ministry of Works and Transport. The AG’s office proposed a forensic audit of revenue collection systems instead.
Recent audits have highlighted weaknesses in the expressway’s operations, including high costs, governance issues, and system vulnerabilities. The AG’s office also commented on free toll passes, suggesting that irregularities in their issuance were attributable to the government and may not be recoverable from the operator. Caution was also urged regarding calls for prosecution, emphasizing that the Director of Public Prosecutions holds authority over investigations and prosecutions.