Parliament Approves Shs4.4 Billion Tax and Debt Waivers for Kilembe Mines and K-Roma

Lawmakers have approved a motion to waive Shs4.46 billion in accumulated tax and non-tax arrears owed by two major entities, K-Roma Limited and Kilembe Mines Limited (KML). The decision was reached during a parliamentary sitting chaired by Speaker Jacob Marksons Oboth.

K-Roma Limited, the manufacturer of Bella Wine, received relief covering Shs784.4 million in principal tax, along with significant sums in penalties and interest. Presenting the report from the Committee on Finance, Hon. Patrick Ocan explained that the company’s financial downturn stemmed from the disruptions of the COVID-19 pandemic and stiff competition from informal, unregistered winemakers. Despite poor inventory management and a sharp drop in sales between 2021 and 2023, the waiver aims to offer the struggling formal enterprise a fresh start.

Meanwhile, the House also wrote off Shs2.6 billion in Non-Tax Revenue owed by Kilembe Mines Limited. KML, which is majority government-owned, has remained under care and maintenance since copper operations ceased in 1982. The mineral rent arrears accumulated between 2018 and 2025 following the termination of a previous concession. Members of Parliament noted that chronic state underfunding directly contributed to the default, with the government releasing only a fraction of the company’s approved budget in past financial years.

Clearing these financial hurdles is expected to pave the way for the smooth handover of Kilembe Mines to a new joint-venture consortium comprising the Sarrai Group, Uganda National Mining Company, and Nile Fiberboard. However, the approvals sparked debate in the House. The Leader of the Opposition, Hon. Joel Ssenyonyi, questioned the legality and timing of the waivers, pointing out potential discrepancies with the Public Finance Management Act.

In response, Minister for Defence and Veteran Affairs Hon. Kiryowa Kiwanuka defended the decision, stating that the Uganda Revenue Authority had exhausted all collection avenues without success. Speaker Oboth ultimately urged the Ministry of Finance to proactively guide the business community on accessing legitimate relief provisions. Read the original report on the Parliament of Uganda.