Civil society organisations have questioned whether Parliament is effectively exercising its constitutional mandate to scrutinise government borrowing, warning that weak oversight has contributed to Uganda’s rising public debt and poor returns from loan-funded projects. The concerns were raised during a dialogue between Members of Parliament and civil society organisations organised by the Southern and Eastern Africa Trade Information and Negotiations Institute (SEATINI) Uganda.
The country’s public debt has risen to about 130.2 trillion shillings (US$34.9 billion), according to the Ministry of Finance and Bank of Uganda, with some estimates placing the figure closer to Shs136 trillion.
The country’s debt-to-GDP ratio now stands at about 53 percent, above the East African Community’s 50 percent benchmark and slightly above the International Monetary Fund’s recommended threshold. While the Ministry of Finance maintains that the debt remains sustainable, critics argue that Parliament has approved successive loans without adequately scrutinising their necessity, implementation and economic returns.
Budget expert, Sulaiman Kiggundu, said Parliament already possesses sufficient legal powers to hold accounting officers accountable for misuse of borrowed funds. He noted that lawmakers can sanction accounting officers who violate public finance regulations, including withholding funding from ministries, departments and agencies that fail to comply with financial management requirements.
Participants noted that although Parliament occasionally questions government loan requests and supplementary budgets, it rarely rejects them.
Hilda Tumuhe, SEATINI Uganda’s Programme Officer for Debt and Aid, called for stronger parliamentary oversight throughout the entire public investment management cycle.
She argued that legislators need greater technical capacity to assess the long-term implications of borrowing, particularly where expensive commercial loans finance projects that generate limited economic returns. Tumuhe also criticised the growing reliance on externally financed projects in which contractors arrange financing and subsequently dictate project terms.
She warned that measuring debt sustainability solely by the government’s ability to service loans ignores the wider impact on health, education and other essential public services. The debate has gained renewed urgency following investigations into alleged corruption surrounding the Busega-Mpigi Expressway project.
Originally scheduled for completion in 2023, the project has already consumed about Shs1.3 trillion, largely financed through loans from the African Development Bank, and government has indicated additional funding will be required before completion.
Parliament’s National Economy Committee member Hassan Kirumira acknowledged Parliament’s oversight responsibility but argued that corruption within implementing agencies often undermines both parliamentary decisions and executive directives.
Herbert Kafeero, Deputy Executive Director of SEATINI Uganda, said Uganda’s debt challenge cannot be separated from weaknesses in domestic revenue mobilisation.
He argued that low tax collection, revenue leakages and generous tax incentives reduce government’s ability to finance development through domestic resources, forcing greater reliance on borrowing. Kafeero also identified limited time for scrutinising loan requests, inadequate access to information and insufficient technical expertise as key constraints affecting Parliament’s oversight role.
Budget Committee Chairperson Amos Kankunda agreed that weaknesses often begin during the loan acquisition process, where decisions are sometimes influenced by individual interests rather than national priorities.
Kankunda said Parliament intends to strengthen oversight by involving more sectoral committees throughout the borrowing and project implementation process.
The discussion comes amid growing public debate over whether Uganda’s increasing debt burden is translating into economic growth and improved public services or exposing taxpayers to rising repayment obligations without corresponding development outcomes-URN. Give us feedback on this story through our email: kamwokyatimes@gmail.com
