The Uganda Civil Aviation Authority (UCAA) has revealed that it is
demanding Shs233.9 billion to government institutions and Uganda
Airlines for services provided at Entebbe International Airport, raising
concerns over the financial pressure the outstanding debt is placing on the
aviation sector.
The disclosure was made before Parliament’s Committee on Physical
Infrastructure in July 2026, where UCAA officials explained that the
accumulated arrears include charges for airport services and other facilities.
According to UCAA Director of Finance Hassan Musinguzi, the debt for
the central government alone stands at approximately Shs91.6 billion,
while Uganda Airlines is demanded by the Authority about Shs91.7 billion.
The remaining amount is attributed to other government-related obligations and
services.
What is the money owed for?
The outstanding bills are linked to services provided at Entebbe
International Airport, including airport passenger service charges, parking
fees, rental-related charges and other aviation services.
UCAA said the continued accumulation of unpaid bills is putting pressure
on its cash flow and could affect its ability to finance operations and
critical infrastructure requirements. The issue is particularly significant
because UCAA plays a central role in Uganda's aviation sector, including
aviation regulation, airport management and the provision of air navigation
services.
Uganda Airlines also facing financial
pressure
The revelation comes amid continued scrutiny of Uganda Airlines'
financial performance. A 2025 Parliamentary Public Accounts Committee report
noted that Shs1.87 trillion had been invested in Uganda Airlines since its
revival, while the airline recorded a net loss of Shs237.9 billion in
the 2023/24 financial year. At the same time, the committee noted
substantial growth in passenger, cargo and excess-baggage revenues. The latest
UCAA figures therefore add another dimension to the debate surrounding the
national carrier: while Uganda Airlines is expected to expand the country's
international connectivity and contribute to the aviation industry, it also has
outstanding obligations to the authority responsible for managing and
regulating much of that aviation infrastructure.
A long-running issue
Outstanding payments between Uganda Airlines and UCAA are not entirely
new. A government Treasury memorandum previously documented significant unpaid
UCAA bills by Uganda Airlines, including Shs47.032 billion in payables
in an earlier reporting period. The document stated that the airline had been
following up on government funding to clear the arrears.
The latest disclosure, however, shows that the wider debt to UCAA has
grown substantially. UCAA told Parliament that it would continue engaging the Ministry
of Works and Transport to secure settlement of the outstanding government
debt.
Why the Shs233.9 billion matters
The revelation puts the spotlight on the relationship between government
financing, Uganda Airlines and the institutions responsible for maintaining the
country's aviation infrastructure. For UCAA, recovering the outstanding money
could provide additional resources for operations, infrastructure maintenance
and development. For government and Uganda Airlines, settling the bills would
address accumulated obligations while potentially easing financial pressure
within the aviation sector.
