A Kampala-based construction company has threatened to sue Samco Construction Company Ltd, the contractor for the multi-billion Akii-Bua Olympic Stadium works, over alleged non-payment for completed works.
Through their lawyers, Kampala Associated Advocates, Bashfame Company Limited is demanding the Egyptian firm settle $1,125,081 (about Shs3.9 billion) and Shs726 million in unpaid Interim Payment Certificates (IPCs) and compensation for delays.
In a demand notice dated September 26, 2025, Bashfame accuses Samco of breaching its contractual obligations by failing to pay on time and causing delays on site.
“Samco has failed to make payment of the entire sum due under the Interim Payment Certificates within the time stipulated in the subcontractor agreement,” the notice reads.
Bashfame added that execution of the works was delayed on various occasions due to a presidential visit on the site that saw mobilisation exercise suspended for 10 days.
They also said failure by Samco to provide the Master Construction Program to guide their works led to underutilisation of resources, while variations such as cutting of trees and removal of tree
stumps and treatment of termites also affected their operations.
"The biggest variations were filling using excavation rock material and and stock-piled materia," the lawyers said.
Bashfame, which was subcontracted to carry out earthworks, excavation and backfilling, clearing and grubbing, removal of structures, and sand supply, says these delays forced it to incur additional costs.
According to the demand letter, the contractor is liable for “prolongation costs of $326,958, idle time on hired equipment of Shs519 million, and unabsorbed overheads of $40,918,” among other claims.
The Shs470 billion stadium project, commissioned by President Museveni in January 2025, is expected to be completed by February 2027.
The 20,000-seat complex will host athletics, swimming, indoor and outdoor sports, as well as training and residential facilities.
But with subcontractors now resorting to legal action, concerns have emerged that the project’s timelines may be disrupted.
One food supplier reportedly also downed tools this week over six months of unpaid bills.
Samco, however, denies having any financial problems.
“Money is not a problem and we always pay our subcontractors upon completion of works,” project manager Eng. Mohammed Nazih reportedly said.
While this was three months ago, the claims remain unfulfilled and the subcontractor says they are under pressure to meet their end of the bargain from costs incurred in carrying out the project works.
The Akii-Bua Olympic Stadium is financed by the Government of Uganda through the National Council of Sports.