The Standard Gauge Railway (SGR), a flagship infrastructure project vital to Uganda’s transport strategy, faces potential delays due to a significant funding shortfall in the 2025/26 national budget.
Parliament’s Budget Committee has flagged a gap of Shs686 billion, threatening the project's timely commencement and progress.
Tony Awany, vice chairperson of the Physical Infrastructure Committee, revealed these concerns while presenting the committee’s report on the 2025/26 Budget Framework Paper.
The project, which has secured Shs2.281 trillion in external financing, requires substantial domestic contributions to move forward.
However, only Shs79.03 billion has been allocated domestically, far short of the Shs765.02 billion required for the fiscal year.
“Whereas the preliminary and full works for 2025/26 have adequate external financing, the domestic budget allocation is grossly inadequate,” Awany said.
“The Ministry requires Shs765.02 billion, leaving a funding gap of Shs686 billion.”
Initially, the SGR project was slated to begin during the 2024/25 financial year, but the delay in securing additional external financing and insufficient domestic funding has jeopardised the timeline.
Awany warned that without urgent government intervention, the project might stall, undermining Uganda’s broader economic and transport development objectives.
The Budget Committee has called on the Government to prioritize funding for the SGR to prevent delays, emphasising its strategic importance in improving connectivity, boosting trade, and fostering regional integration.
The SGR project is expected to modernize Uganda’s rail network, linking it to regional trade routes and facilitating the efficient movement of goods and people.
However, with the current financial hurdles, the project's long-term prospects hinge on the Government’s ability to bridge the funding gap promptly.
