news 2 September 2026 The Observer (Uganda)

Uganda's Road Sector Riddled with Corruption, Billions Lost

Allegations of rampant corruption within Uganda's road construction sector suggest billions of shillings are being lost through inflated contracts, fraudulent compensation claims, and manipulated project designs. Works and Transport minister Fred Byamukama estimates losses of up to Shs 50 billion quarterly. Source: https://observer.ug/news/how-road-mafias-are-eating-billions

Uganda’s road infrastructure projects are reportedly being plundered by “mafias” who allegedly siphon billions of shillings through sophisticated corrupt schemes. Works and Transport minister Fred Byamukama has revealed that government officials, instead of safeguarding public funds, are actively participating in siphoning money meant for road development. He estimates the sector could be losing as much as Shs 50 billion every three months.

Byamukama detailed several alarming practices, including the alleged creation of fake graves along proposed highway routes to claim compensation. In other instances, buildings have reportedly appeared along planned road paths shortly before government valuers arrive, and wetland areas have rapidly acquired land titles to claim compensation. These fraudulent activities inflate project costs, delay completion, and divert funds desperately needed for other public services, especially at a time when Uganda faces rising debt-servicing costs.

The minister singled out specific projects and officials. For the Masaka–Mutukula highway, he alleged a conspiracy to steal Shs 150 billion. He also pointed to the Busega Expressway, where a project initially estimated at Shs 600 billion allegedly ballooned to Shs 2 trillion due to corrupt land acquisition practices and altered road designs that favored private compensation claims. Even road projects for the 2027 Africa Cup of Nations co-hosting are not immune, with attempts to inflate the cost per kilometre.

Perhaps the most striking allegation involves the Nateete–Nakawuka–Kawuku Road, where fake graves were reportedly staged to demand compensation. Furthermore, buildings along this route are said to belong to Ministry of Works officials involved in the compensation process. The minister asserted that investigations are underway, and those found guilty, including officials and contractors, will face arrest and imprisonment, with blacklisting promised for errant contractors.

These revelations highlight a systemic issue where public money intended for vital infrastructure is lost before roads are even built, impacting the nation’s development and financial stability.

Source: https://observer.ug/news/how-road-mafias-are-eating-billions