In a bold push to strengthen connectivity, reduce transport costs, and drive sustainable economic growth, the Ugandan government has allocated approximately Shs8.79 trillion (commonly rounded to Shs8.8 trillion) to the transport and infrastructure sector in the FY2026/27 national budget.
The allocation, announced as part of the overall Shs84 trillion-plus national budget, prioritizes roads, railways, airports, bridges, ferries, and the expansion of Uganda Airlines, signaling a continued commitment to infrastructure-led development.
Finance Minister Henry Musasizi highlighted that the massive investment will support flagship projects including the construction of the Malaba-Kampala Standard Gauge Railway (SGR), completion of rehabilitation works on the Metre Gauge Railway, and extensive road construction and maintenance programmes.
Key road projects earmarked for completion or advancement include:
- The long-awaited Kira-Kasangati-Matugga Road (costing around Shs200 billion)
- The 92-kilometre Muyembe-Nakapiripirit road linking Bugisu and Karamoja sub-regions
- Tororo-Busia and Mayuge-Busia Town roads
- The 100.1-kilometre Apac-Lira-Puranga road
These initiatives aim to improve regional connectivity, ease pressure on existing infrastructure, and unlock economic potential in underserved areas.
Focus on Railways and Regional Integration
A significant portion of the budget will accelerate progress on the Standard Gauge Railway, a game-changer expected to slash cargo transport costs, boost trade with neighbouring countries, and support Uganda’s ambitions as a regional logistics hub. The government is also eyeing completion of rehabilitation works on older rail networks to complement the modern SGR push.
Aviation infrastructure has not been left behind. Funds have been set aside for the operationalisation of Kabalega International Airport, upgrading of regional aerodromes, and further expansion of Uganda Airlines to enhance both domestic and international connectivity.
Economic Impact and Expectations
Analysts say the Shs8.8 trillion investment is expected to create thousands of jobs in construction and related sectors, stimulate local economies along project corridors, and contribute to the government’s target of expanding GDP to an estimated Shs250 trillion by the end of June 2026.
The focus on completing ongoing projects rather than initiating many new ones reflects a strategic shift toward efficiency and value for money, as emphasised by the Ministry of Works and Transport.
Challenges Ahead
While the allocation has been widely welcomed by stakeholders in the construction and business communities, concerns remain about timely implementation, project oversight, and ensuring that funds reach intended priorities without leakages.
As Parliament and the public scrutinise budget execution in the coming months, the success of this infrastructure push will be measured by visible improvements in road quality, reduced travel times, and enhanced trade flows.
The government maintains that sustained investment in infrastructure remains central to Uganda’s Vision 2040 and the National Development Plan, positioning the country for stronger regional competitiveness and inclusive growth.
