Business 27 August 2026 Daily Monitor (Uganda)
MPs Grill Uganda Airlines Officials Over Shs230 Billion Loss
Members of Parliament have questioned Uganda Airlines management regarding significant financial losses totaling Shs230.8 billion in the 2024/25 financial year. Officials cited the impacts of Covid-19 and new route costs for the financial challenges. Source: https://www.monitor.co.ug/uganda/news/national/mps-grill-uganda-airlines-officials-over-shs230b-loss-5573968
Lawmakers on the Committee on Commissions, Statutory Authorities and State Enterprises (Cosase) have put Uganda Airlines officials on the spot over substantial financial losses, mounting debt, and irregularities highlighted in the Auditor General’s latest report. The national carrier reported a deficit of Shs230.816 billion for the 2024/25 fiscal year, adding to previous years’ losses.
The airline’s debt ratio has reportedly climbed, with accumulated arrears also seeing a significant increase. The Auditor General’s report further pointed to a concerningly low recognition of government investment against the total funds injected, alongside issues with lease agreements, unbanked cash, and fuel supplier contracts.
Concerns were also raised about potential revenue leakage, including allegations of duplicated air tickets and the procurement of aviation fuel without formal contracts. Committee members pressed the airline’s Chief Finance Officer, Allan Joel Kyeyune, on these matters and the heavy reliance on passenger revenue, which constitutes 87% of the airline’s income.
Kyeyune explained that the losses were largely attributed to the repercussions of the Covid-19 pandemic, the financial commitment to establishing new routes, and limited revenue diversification. He noted that new airline routes typically require four to five years to achieve profitability.
CEO Girma Wake acknowledged the challenges but informed the committee that a recovery and expansion strategy is underway. This plan includes restoring grounded aircraft, enhancing regional connectivity, and positioning Entebbe as a key aviation hub. The airline has also placed orders for new Boeing aircraft, with deliveries anticipated from 2032 onwards, and plans to utilize smaller aircraft for regional expansion to feed into its long-haul services.
Uganda Airlines maintains that these strategies, while not yielding immediate profitability, are crucial for its long-term sustainability and objective of strengthening Entebbe’s position as a regional aviation center. The airline is also implementing improved payment systems to address issues like unbanked cash collections.