Parliament’s Committee on Physical Infrastructure has called on Uganda Railways Corporation (URC) to account for 81 railway wagons reportedly sold as scrap for Shs3.7 billion.
The committee, chaired by Hon. Mwine Mpaka, raised concerns over the disposal of railway assets during an on-site inspection of URC’s headquarters on 11 August 2026.
The visit formed part of the committee’s ongoing inquiry into URC’s operations, assets, expenditure and procurement ahead of the planned allocation of resources to support the corporation’s recovery.
During the inspection, MPs questioned URC management over the disposal of the wagons. The committee said it had established that 81 wagons had been sold as scrap and had subsequently become aware of an advertisement for the sale of additional wagons in Tanzania that had not previously been disclosed to it.
The committee is seeking to establish the condition of URC’s assets and assess expenditure before Parliament considers allocating additional resources to the corporation.
URC is seeking sustained government funding to rebuild its operations following years of inadequate investment, ageing equipment and shortages of specialised railway personnel.
Managing Director Benon Kajuna told the committee that URC currently has four mainline locomotives available for cargo operations, while the Kampala-Mukono passenger service operates with five coaches.
According to Kajuna, the corporation requires more than Shs100 billion annually over five years to stabilise its operations.
URC is also pursuing the procurement of 10 new locomotives and 100 flat wagons with support from the African Development Bank, alongside rehabilitation of the railway line between Mombasa and Kampala.
MPs questioned the proposed five-year recovery period and whether improvements to railway services could be delivered sooner. Bunyole West County MP Hon. James Waluswaka also raised concerns over the timeframe for procuring new locomotives given the urgency of restoring more efficient railway operations.
Kajuna advised the committee that the manufacturing lead time for a new locomotive is approximately 2.3 years from contract signing, taking into account manufacturing, testing and delivery.
The committee also revisited concerns over locomotives purchased during the 10th Parliament that had reportedly experienced operational difficulties on Uganda’s metre-gauge railway.
Kajuna said the locomotives were not incompatible with the railway network. He attributed the difficulties to their longer design and constraints at a turning point affected by construction work on a flyover.
URC’s shortage of specialised railway personnel was also raised during the inspection. The corporation currently lacks signalling and telecommunications engineering capacity as well as an electrical engineer.
Kajuna attributed the skills shortage partly to the suspension of railway staff training from the 1990s, when the government was pursuing plans to concession the railway.
URC is recruiting specialised personnel and plans to establish a railway training institute under an African Development Bank-supported project.
