news 3 September 2026 Nile Post
Parliament Greenlights EUR207 Million Loan for Key Jinja-Kamuli-Bukungu Road Project
Uganda's Parliament has approved a significant loan of up to EUR207.74 million from Citi Bank and other financial institutions to fund the construction of the 127-kilometre Jinja-Mbulamuti-Kamuli-Bukungu road and a 10-kilometre stretch in Jinja City. Source: https://nilepost.co.ug/news/368860/parliament-approves-eur20774-m-loan-for-strategic-jinja-kamuli-bukungu-road
Lawmakers have given the nod to a substantial loan facility, authorizing the government to secure EUR207.74 million from Citi Bank and other financial entities. This funding is earmarked for the crucial design and construction phases of the 127-kilometer Jinja-Mbulamuti-Kamuli-Bukungu road, along with an additional 10-kilometer road project within Jinja City.
During a plenary session chaired by Speaker Jacob Markson Oboth, the Minister of Finance, Planning and Economic Development, Henry Musasizi, presented the motion. He emphasized the road’s strategic importance, describing it as a vital link connecting Jinja City to Amolatar and the Teso sub-region via Busoga. Musasizi highlighted that the completed project is expected to significantly reduce travel times and boost trade across the region.
The Committee on National Economy, through its chairperson Jane Pacuto, endorsed the loan. However, the committee urged the Ministry of Finance to strictly adhere to the Public Debt Management Framework 2023, aiming to minimize borrowing costs and ensure the nation’s debt sustainability.
Further recommendations from the committee stressed the need to expedite the project’s completion to quickly realize its anticipated economic benefits, especially considering the high cost of commercial borrowing. This urgency was echoed in the committee’s report, which noted the financial implications of delayed project realization.
While the majority supported the loan, a minority report from MP Hassan Kirumira (Katikamu South) argued against it, citing unfavorable commercial terms that could burden taxpayers. Despite this opposition, the majority of legislators voted in favor, recognizing the road’s strategic value for regional trade, connectivity, and socio-economic development across the Busoga, Lango, and Teso areas.
The approved loan is anticipated to enhance connectivity, ease the movement of goods and people, and stimulate economic activity, particularly by opening up island and hard-to-reach areas in Buyende and beyond. The successful passage of this motion signals a commitment to improving infrastructure and fostering regional integration.