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Parliament has approved over $600 million in loans and grants to fund the Greater Kampala Metropolitan Area Urban Development Programme, aimed at improving infrastructure, environmental conservation, and service delivery.

Parliament has formally approved the government’s proposal to borrow and receive a grant amounting to over $600 million to finance the Greater Kampala Metropolitan Area Urban Development Programme (GKMA-UDP).

The approval was granted following a motion presented by the State Minister for Finance, Hon. Henry Musasizi, during a sitting chaired by the Deputy Speaker, Rt. Hon. Thomas Tayebwa, on January 22, 2025.

In his presentation, Hon. Musasizi outlined that the programme aims to enhance the capacity of the Ministry of Kampala City and Metropolitan Affairs, Kampala Capital City Authority (KCCA), and eight local governments within the Greater Kampala Metropolitan Area to provide coordinated infrastructure and services.

“The programme is aligned with the National Development Plan IV and seeks to achieve specific objectives, including strengthening economic infrastructure, conserving environmental assets, supporting the informal sector, promoting tourism, and improving service delivery by local governments,” Hon. Musasizi explained.

The loan terms include a 25-year repayment period, with a seven-year grace period.

The Chairperson of the Committee on National Economy, Hon. John Bosco Ikojo, noted that progress on the project began after Parliament’s initial approval of the borrowing request in May 2024.

“By the end of the first quarter, flagship road projects covering 29.74 km were underway in Kira and Mukono municipalities. Additionally, thirteen road projects, totalling 81.25 km and spanning Wakiso, Mpigi, Kampala, Makindye-Ssabagabo, Nansana, and Entebbe, have been advertised,” Hon. Ikojo reported.

He further highlighted that funds had been allocated for consultancy services, civil works, environmental impact assessments, and social safeguards. However, he cited challenges such as delays in loan approval processes and fluctuating interest rates from multinational lenders.

The committee recommended that the Ministry of Finance accelerate loan negotiations to address interest rate risks and reduce delays in project implementation.

Rt. Hon. Thomas Tayebwa expressed concern over KCCA’s performance, observing that despite receiving over Shs3 trillion since 2018, the impact on the ground has been minimal.

“The perception that the government is not funding Kampala is inaccurate. The real issue lies in poor implementation,” Rt. Hon. Tayebwa remarked.