Sale of Uganda Railway Wagons as Scrap: The controversial sale of state-owned railway assets has prompted intense scrutiny from Uganda’s Parliament, with lawmakers demanding strict accountability from the Uganda Railways Corporation (URC) leadership. The Parliament’s Committee on Physical Infrastructure recently challenged the URC to explain the circumstances surrounding the disposal of 81 wagons, which were reportedly sold as scrap for a staggering Shs3.7 billion.
The issue was thrust into the spotlight during an on-spot inspection of the URC’s headquarters in Kampala on August 11, 2026, led by Committee Chairperson Hon. Mwine Mpaka. The visit forms part of a broader ongoing inquiry into the corporation’s asset management, expenditure, and overall procurement operations. During the inspection, Hon. Mpaka questioned URC management over the transparency of the disposal process. The committee’s concerns were further heightened upon discovering that the URC had discreetly advertised the sale of additional wagons in neighboring Tanzania without prior parliamentary notification.
“We have come across another advert of wagons you want to sell in Tanzania, and you had not told us,” Mpaka stated, emphasizing the need for comprehensive asset evaluation before Parliament approves any future funding allocations for the corporation.
The Uganda Railways Corporation is currently appealing for sustained government bailouts to revive its operations following years of inadequate investment, severe skill shortages, and decaying equipment. URC Managing Director Benon Kajuna informed lawmakers that the corporation currently operates with only four mainline cargo locomotives and a meager five coaches serving the Kampala-Mukono passenger route.
Uganda: Sale of Uganda Railway Wagons as Scrap Raises Queries Among Lawmakers
Kajuna stated that stabilizing the corporation would require an aggressive financial injection of over Shs100 billion annually over the next five years. As part of its recovery strategy, the URC is pursuing the procurement of 10 new locomotives and 100 flat wagons, bolstered by support from the African Development Bank, alongside a major rehabilitation project for the critical railway line stretching between Kampala and Mombasa. However, Members of Parliament remained skeptical of the lengthy recovery timeline.
Bunyole West County MP, Hon. James Waluswaka, challenged the five-year projection, arguing that Ugandans desperately need an efficient transport system now. “When you talk about five years, that means we shall be serving the lunch at dinner time,” Waluswaka argued, pushing for accelerated procurement of new locomotives. Kajuna defended the timeline, explaining that manufacturing, testing, and delivering a new locomotive takes approximately 2.3 years from the signing of a contract.
This latest scrap sale controversy arrives just days after the URC faced heavy parliamentary pressure over a separate scandal involving 394 missing railway wagons—valued at approximately US$59 million. The missing assets, which include 281 wagons belonging to Kenya Railways, reportedly disappeared during the transition to a digital wagon-management platform following the termination of the Rift Valley Railways concession. Lawmakers have since demanded detailed documentary evidence to track and recover the unaccounted regional rolling-stock.
