Uganda’s Toll Road Faces More Than Shs1bn In Suspected Revenue Losses

August 8, 2026
By Mintesinot Nigussie

Uganda’s Kampala-Entebbe Expressway is facing scrutiny over more than Shs1 billion in suspected revenue losses after an internal audit found that 10,446 vehicles could not be reconciled with toll records. The findings were presented to Parliament’s Committee on Physical Infrastructure, as lawmakers questioned officials from the Ministry of Works and Transport, expressway operator EGIS and contractor Pinnacle over discrepancies in toll collections.

The audit found that 586 vehicles could not be accounted for in November 2024, resulting in an estimated revenue shortfall of about Shs407 million. A further 2,860 vehicles were missing from toll records in December 2025, while more than 7,000 were unaccounted for in May 2026. The discrepancies translated into suspected revenue losses exceeding Shs1 billion. The findings have raised questions about the integrity, reliability and security of the electronic toll collection system on Uganda’s first toll road.

The committee, chaired by Mwine Mpaka, also questioned whether the government was receiving value for money from the expressway. Fred Byamukama, the minister of state for works, told lawmakers that the government secured a US$350 million loan in 2021 to finance its construction. Since tolling began, the government has collected approximately Shs129 billion in toll revenue, while about Shs122 billion has been paid to the contractor responsible for operating the tolling system. James Waluswaka, a member of the committee, questioned the economics of the arrangement. "When almost as much money goes to the contractor as what Government collects from motorists, Parliament must ask whether Ugandans are obtaining value for money from this investment," he said.

The ministry said payments under the performance-based maintenance contract vary according to whether contractors meet agreed key performance indicators. Deductions have been imposed for failures including non-functional street lighting, damaged guardrails, defective road signs, poor road cleanliness and delays in implementing the overload control system. Officials said about Shs55 million has consistently been deducted because the overload control system remains incomplete. Lawmakers also questioned why Shs1.6 billion allocated for the installation of weigh-in-motion bridges had not been utilised. Isaac Wani, an engineer at the ministry, attributed the delay to unsuitable terrain near existing toll plazas. He said the funds had instead been incorporated into a subsequent contract to install fixed weighbridges at toll plazas and weigh-in-motion equipment along the Northern Bypass.

The committee also sought clarification on vehicles exempted from toll payments and whether the exemptions were supported by the necessary statutory instruments. Lawmakers warned that discretionary exemptions without proper legal backing could undermine transparency. Another area of concern was the Automated Payment Collection Unit account, which temporarily receives electronic toll payments before they are remitted to the Consolidated Fund. Barbara Namugambe, the ministry’s undersecretary, asked the committee for additional time to reconcile the records and submit the required information. The committee also questioned more than Shs200 million spent on training in India, given that the supervising contractor is a French company. William Tiyo, the committee’s deputy chairperson, demanded evidence that the training had improved management of the toll road. The committee ordered the ministry to submit a comprehensive report by August 12 detailing the training beneficiaries, modules, expenditure and measurable outcomes, as well as the information needed to account for the toll-record discrepancies.

Source: FSX Business News