Uganda Airlines to receive sh145b in 2026/27 budget

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The government has allocated sh145b to support Uganda Airlines in the 2026/27 financial year as part of a broader sh8.3 trillion transport budget.

This was revealed by the Works and Transport Minister, Katumba Wamala, while presenting the ministry’s Ministerial Policy Statement to Parliament’s Physical Infrastructure Committee, chaired by Nwoya County legislator Tony Awany, on March 1, 2026, at Speke Resort in Munyonyo.

Planned outputs for Uganda Airlines include fast-tracking aircraft acquisition for wide-body, narrow-body, and freighter aircraft, establishing a wheels and brakes shop, and completing key scheduled maintenance on both CRJ 900 and Airbus A330-800 aircraft.

Feasibility studies for a business lounge at Entebbe International Airport and a maintenance, repair, and overhaul hangar are also underway.

The airline currently operates six owned aircraft and one leased aircraft and will use the funds to implement a turnaround strategy that includes route rationalisation, schedule development, and investment in maintenance and operations.

An additional sh126.9 billion has been earmarked for the construction and equipping of a modern terminal at Kabalega International Airport, which is 96% complete, while sh20 billion is set aside for its operationalisation.

The budget will also support continued maintenance of 12 out of 13 regional airports, including Arua, Gulu, Pakuba, Lira, Kidepo, Moroto, Soroti, Tororo, Jinja, Mbarara, Kasese, and Kisoro.

While MPs raised concerns over continued funding to a loss-making airline, the ministry emphasises that investment in domestic and regional connectivity could generate higher yields and strengthen Uganda’s position as a regional aviation hub in the long run.