Financial year 2026/27: Infrastructure spending hits Shs8.79 trillion as government bets on rail, roads and air transport

Government has allocated Shs 8.79 trillion for transport infrastructure development in the 2026/27 financial year, with major investments planned in roads, railways, airports and water transport as part of Uganda’s strategy to accelerate economic transformation.

Presenting the national budget on Thursday, Finance Minister Henry Musasizi described transport infrastructure as the “bone marrow” of the economy, saying it remains critical for connecting farmers to markets, industries to inputs and exporters to global markets.

“Transport infrastructure is the bone marrow of the economy. It connects farmers to markets, workers to jobs and industries to inputs, while linking exporters to regional and global markets,” Musasizi said.

The minister reported significant progress in road construction and maintenance during the outgoing financial year.

Government continued construction of 24 major roads covering approximately 1,154 kilometres while rehabilitating 949 kilometres of national roads.

More than 7,400 kilometres of paved roads and 14,000 kilometres of unpaved roads were maintained, while local governments upgraded and maintained thousands of kilometres of community access roads.

The Greater Kampala Metropolitan Area road programme also registered notable progress.

According to Musasizi, 297 kilometres of roads have already been paved under the programme, with several roads rehabilitated and eight major junctions signalised to improve traffic flow and road safety.

Government is targeting the upgrade of more than 600 kilometres of roads within the metropolitan area over the next five years.

In rail transport, Uganda recorded what Musasizi described as a historic milestone following commencement of construction of the Standard Gauge Railway from Malaba to Kampala.

The 273-kilometre railway is expected to significantly reduce transport costs and improve regional competitiveness.

“Upon completion, container transport costs from Mombasa to Kampala are projected to fall from about USD 3,500 to roughly USD 1,600, and transit time from five days to one day,” he said.

Government also reported that rehabilitation of the Tororo-Gulu Metre Gauge Railway has reached 66 percent completion while the Kampala-Mukono section has been completed.

The aviation sector likewise registered significant progress.

Physical works at Kabalega International Airport have been completed, with government now focusing on operational requirements ahead of oil production and the 2027 Africa Cup of Nations tournament.

Construction of Kidepo International Airport is underway, while Phase One of the rehabilitation and expansion of Entebbe International Airport has been completed.

The upgrade has increased passenger handling capacity from two million to 3.5 million travellers annually.

Government also maintained 12 regional aerodromes to support tourism and trade.

In a major boost to the national carrier, Musasizi announced plans to further capitalise Uganda Airlines through acquisition of eight additional passenger aircraft.

The minister said the expansion would strengthen international connectivity and support tourism, investment and exports.

Priority areas in the new financial year will include continued construction of the Standard Gauge Railway, expansion of road infrastructure, development of ports and ferries, operationalisation of Kabalega Airport and expansion of Uganda Airlines.