🔥 Trending Uganda Railways Corporation Faces Financial and Corruption Allegations

The Uganda Railways Corporation (URC) is currently undergoing a period of significant change and scrutiny, marked by efforts to reduce losses, ambitious revitalization plans, and investigations into financial irregularities and missing assets.

Efforts to Reduce Operating Losses

URC has reported a substantial reduction in its annual operating losses. For the financial year ending June 2025, the corporation recorded a net operating loss of 17.05 billion Ugandan shillings (approximately $4.5 million USD) ⁴. This represents a 67% cut in annual losses, signaling progress in its reform and efficiency efforts ²⁴. Despite this improvement, the Auditor General's Report for 2025 indicated that URC continues to operate at a loss ¹.

Ambitious Revitalization Plans

URC is pursuing an ambitious five-year plan aimed at transforming the national rail network into a cornerstone for industrialization and export ⁸. This plan focuses on revitalizing the railway infrastructure and services to promote sustainable economic and social development in East Africa ⁶. The corporation is actively engaging with partners, including the EU Delegation, for strategic development initiatives ¹⁰.

Scrutiny and Investigations

Despite the positive developments in loss reduction, URC is facing intense scrutiny over several issues:

Missing Railway Wagons

Parliament is investigating the disappearance of 394 railway wagons, valued at over 220.8 billion Ugandan shillings, that became untraceable during the Rift Valley Railways (RVR) concession period ⁷⁹. The Managing Director of URC, Benon Kajuna, was directed on July 23, 2026, to record a statement with the Directorate of Criminal Investigations (CID) regarding the matter, as URC failed to provide documentary evidence of efforts to recover these assets ⁹.

Auditor General's Report Findings

The Auditor General's Report for 2025 highlighted URC's continued struggle to turn its operations into a profitable business ¹. This report underscores the ongoing financial challenges despite the reported reduction in losses.

Historical Context

URC took over the operations of the metre-gauge railway system in Uganda in 2018 after RVR lost its concession in October 2017 ⁵. Passenger services, which had been temporarily discontinued, were restored in February 2018 under URC's management ⁵.

In summary, the Uganda Railways Corporation is at a critical juncture, balancing efforts to improve financial performance and implement long-term revitalization strategies with the need to address serious accountability issues and historical challenges.