Construction sector presses govt to clear sh1 trillion arrears
Wandera said the construction industry was benefiting from Uganda’s economic growth and called for stronger cooperation between the Government and the private sector.
Construction sector presses govt to clear sh1 trillion arrears
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Uganda’s construction industry has asked the government to clear outstanding arrears of more than sh1 trillion owed to contractors, saying delayed payments are putting pressure on businesses and the wider construction supply chain.
Transport state minister Julius Maganda Wandera assured contractors and infrastructure developers that the government would address the outstanding payments.
Wandera made the commitment on September 16, 2026, at the second Uganda Construction and Infrastructure Forum and Exhibition (UCIFE 2026) at Kampala Serena Hotel.
The two-day forum, organised by the Uganda National Association of Builders, Suppliers and Engineering Contractors (UNABSEC), is being held under the theme, “Harnessing Digitalisation and Innovation in Construction and Infrastructure Development.”
Wandera said the construction industry was benefiting from Uganda’s economic growth and called for stronger cooperation between the Government and the private sector.
“The economy has been growing at 6.4%, and this is reflected in the booming construction industry. It is nice to see financiers, manufacturers of building materials and interior decorators converge under UNABSEC,” he said.
He also encouraged greater use of public-private partnerships as an alternative way of financing and delivering infrastructure.
The call for payment comes against a backdrop of an industry whose operations depend heavily on reliable cash flow. Contractors need to meet payrolls, pay suppliers and subcontractors and maintain equipment while projects are being implemented.
UNABSEC president Kiara Binta said the industry must also prepare for a rapidly changing technological environment.
“Adopt AI or you risk being left by the world in this digital era. Use it to improve service delivery and efficiency in our diverse trades,” Binta said.
She also called for greater use of technology in urban planning as Kampala expands, particularly in identifying and protecting green spaces and other areas needed for a liveable city.
Participants also raised concerns about corruption in the awarding of tenders.
Protecting construction data
The shift towards digital systems is creating new responsibilities for companies and government agencies, particularly around data protection.
Joshua Bogere of the Uganda Communications Commission (UCC) highlighted cybersecurity risks as more business and government services move online.
For the construction industry, digital information can include architectural designs, engineering drawings, contracts, financial records and procurement information, making the protection of such data increasingly important.
Joshua Akandwanaho of the National Information Technology Authority-Uganda (NITA-U) said the Government was working to connect data across ministries to improve efficiency and reduce costs.
“There is a policy being put in place. There is data recovery in case of any emergency. We are also building local data centres. We have the power to keep them powered and maintain data sovereignty,” Akandwanaho said.
Designing before building
Digital technology is also changing what happens before construction begins.
Jameson Oulanya of Dott Services said artificial intelligence and digital modelling were enabling project teams to identify problems and make changes before work was completed on site.
He cited 5D modelling, which adds cost information to three-dimensional digital models, as one of the technologies changing project planning.
The technology can allow clients to virtually move through a proposed building and identify aspects that need to be changed.
“This enables making changes where need be,” Oulanya said. “The contractor can work with a supplier, engineer and labourer to perfect a given job.”
Such collaboration can bring different participants into the planning process earlier, reducing the likelihood of costly changes emerging after construction has started.
The discussions at UCIFE 2026 highlighted two immediate concerns for Uganda’s construction industry: the need for contractors to receive payments due to them and the need to adapt to new technologies that are reshaping the way infrastructure is planned and delivered.
The forum brought together contractors, suppliers, manufacturers, investors, government agencies and innovators to discuss financing, technology and the future of Uganda’s built environment.