NEC, Kyambogo University partner to construct 1.3km road worth sh2.99b

KAMPALA - The National Enterprise Corporation (NEC) and Kyambogo University have partnered to construct a 1.3-kilometre road at a cost of sh2.99 billion, in a move aimed at improving infrastructure within the university.

According to the Memorandum of Understanding (MoU), NEC will undertake the upgrading of selected roads within the university, including drainage works, earthworks, pavement construction, asphalt surfacing and other ancillary roadworks.

The project is expected to be completed within three to six months.

The roads earmarked for construction include the stretch from the main roundabout to Kabaka Gate, UPK Engineering Road, Kisonsokole Road, MacKay Loop 1, MacKay Loop 2 and MacKay Road.

The university secretary and accounting officer, Arthur Katongole, said the institution has long struggled to improve its infrastructure, noting that previous engagements with private contractors were largely disappointing.

Lt. Gen James Mugira (L) on behalf of National Enterprise Corporation (NEC) and Prof. Eli Katunguka of Kyambogo University after signing a Memorandum of Understanding (MoU), where NEC will undertake the upgrading of selected roads within the university. (All Photos by Mpalanyi Ssentongo)

“Private companies face many challenges. They frequently request advance payments, and in certain instances, they misuse the funds, resulting in incomplete or delayed projects," he stated.

Katongole explained that the university sought NEC's services after being impressed by its previous work. During our visit to Kiira in Jinja city, NEC informed us that they constructed the roads at Kiira Motors.

"They looked good, and we were impressed," he added, expressing confidence in NEC's ability to deliver quality work.

NEC is the commercial arm of the Uganda People’s Defence Forces (UPDF), established in 1989 by an Act of Parliament to run business ventures on behalf of the military. It was created during a period of economic recovery to help make the army more self-reliant and reduce its dependence on government funding.

Under reforms promoted by President Yoweri Museveni, NEC was designed to engage in income-generating activities while contributing to national development.

Its core mandate includes supporting soldiers’ welfare, utilising military expertise in sectors such as engineering and logistics, and participating in commercial and industrial enterprises.

Over the years, NEC has expanded into sectors including construction, agriculture, manufacturing, logistics and, more recently, mining. Through its subsidiaries, it has been involved in major infrastructure projects such as road construction and housing, positioning itself as a key player in Uganda’s development efforts.

However, NEC has also faced criticism over the military’s involvement in civilian business, concerns about competition with private firms and questions around transparency.

Despite these issues, it remains an important institution in Uganda’s economic and institutional landscape.

Kyambogo University vice chancellor, Prof. Eli Katunguka, urged NEC to produce high-quality work, emphasising that this could pave the way for additional collaborations. He also raised concerns about the university’s security, citing the lack of a perimeter wall.

“Our university is open to everyone. We do not have perimeter walls, unlike others. If you do quality work, we can also negotiate for more projects like these,” he said.

Katunguka added that the road project had initially been planned before the outbreak of COVID-19 but was delayed as national priorities shifted. He described the partnership as historic and expressed optimism that successful completion would lead to more contracts.

He said, "The president has a lot of confidence in the military, which is why they trust them with such projects."

NEC general manager, Lt Gen. James Mugira, commended the university for entrusting the corporation with the project. He noted that, beyond road construction and renovation of institutions, NEC is also exploring opportunities in railway development to expand its portfolio.

He assured stakeholders that the project would be executed to high standards, emphasising that both NEC and Kyambogo University are government entities committed to national development.