Government has allocated Shs 6.92 trillion to develop integrated transport infrastructure in the upcoming 2025/26 financial year, with a focus on road, rail, water, and air transport.
Delivering the budget speech at Kololo Independence Grounds, Finance Minister Hon. Matia Kasaija said the government had made considerable progress in enhancing connectivity across the country.
“The tarmacked road network now stands at 6,287.6 kilometres, up from 3,112 kilometres in 2010/11,” he announced.
Major road corridors have significantly reduced travel times, such as the Malaba–Kisoro route, which now takes about 10 hours, compared to 48 hours previously. Other key achievements in the road sector during FY 2024/25 that he mentioned included Rehabilitating 125 km of roads, Upgrading over 100 km to paved standard,Disbursing Shs 579 billion for DUCAR maintenance, Committing Shs 1.4 trillion to road and drainage works in the Greater Kampala Metropolitan Area m and Completing the Kampala Flyover Project and progressing on 10 strategic bridges.
For FY 2025/26, the Minister revealed that an additional Shs 790 billion will be added to the road budget, bringing the total to Shs 4.28 trillion. Over 20 road projects will be prioritised, including Kampala-Gayaza-Kalagi, Kabale-Lake Bunyonyi, Karugutu-Ntoroko, and Koboko-Yumbe-Moyo among others. Construction of bridges and the Kampala-Jinja Expressway through a PPP model will also commence.
In railway transport, he noted that the President launched the Standard Gauge Railway (SGR) from Malaba to Kampala, which is expected to cut cargo transport costs by 50% and reduce delivery time from Mombasa to Kampala from 7 days to 1 day. Rehabilitation of Mukono-Kampala and Tororo-Gulu metre gauge lines is also ongoing.
In water transport, the government is maintaining ferries and constructing new ones for Bukungu-Kaberamaido-Kagwara and Lake Bunyonyi, alongside continued development of Bukasa Port.
In the aviation sector, Uganda Airlines now flies to 17 destinations, with market share growing from 4% in 2019 to 24% in 2024. A return ticket to Nairobi now costs around USD 300, down from USD 800 five years ago. The airline’s revenue jumped from Shs 28 billion in 2019/20 to Shs 319 billion in 2023/24.
The Entebbe International Airport upgrade is nearly complete, with expanded cargo and passenger facilities. FY 2025/26 will also see capitalisation of Uganda Airlines, operationalisation of Kabalega International Airport, and upgrade of regional aerodromes.
“These infrastructure investments are critical for accelerating trade, tourism, and industrial growth,” Hon. Kasaija concluded.