The Auditor General, Edward Akol, has released a report on the profitability of Uganda’s public corporations and state enterprises, offering insights into their financial performance.
Out of the 50 public corporations and state enterprises, 41 operate on a commercial basis, while nine are non-profit.
Each financial year, the government injects funds into public corporations and state enterprises where it holds shares.
While these entities function independently, those with a commercial mandate are expected to generate profits, operate efficiently, and remit dividends to the government, making their financial performance a matter of public interest.
The Auditor General assessed 20 out of the 41 commercially oriented public corporations and state enterprises.
In his report for the year ending December 2024, he revealed that 13 agencies posted profits, with Uganda Electricity Transmission Company Limited (UETCL), Uganda Electricity Generation Company Limited (UEGCL), and Uganda Civil Aviation Authority (UCAA) leading the pack.
UETCL recorded profits of Shs 82.25 billion, followed by UEGCL at Shs 54.28 billion, while UCAA posted Shs 32 billion.
“I analysed the profitability of 20 public corporations and state enterprises and noted that 13 made profits/surplus in the year under review, with Uganda Electricity Transmission Company Limited (UETCL) (UGX 82.25Bn), Uganda Electricity Generation Company (UEGCL) (UGX 54.28Bn), and Uganda Civil Aviation Authority (UGX 32Bn) outperforming the rest of the assessed entities,” the report states in part.
Mandela National Stadium generated Shs 18.66 billion in profits, while National Enterprise Corporation (NEC) Luwero Industries Limited earned Shs 10.65 billion. NEC Construction Works and Engineering Limited posted Shs 5.46 billion, and NEC AGRO SMC Limited earned Shs 4.34 billion.
However, profits for National Housing and Construction Company Limited (NHCC) dropped by 90.5%—from Shs 34.59 billion in the previous year to Shs 3.27 billion.
Insurance Training College made Shs 1.824 billion in profits.
Meanwhile, Uganda Printing and Publishing Corporation (UPPC), which had recorded a loss of Shs 3.07 billion the previous year, posted a turnaround with Shs 1.04 billion in profits for the financial year 2023/24.
Nile Hotel International Limited posted Shs 1.02 billion in profits, Uganda Property Holdings Limited earned Shs 638 million, while NEC Uzima Limited registered Shs 520 million.
Rising losses among state enterprises
Several state enterprises and corporations reported an increase in losses compared to the previous year. These include Kilembe Mines Limited, Uganda Electricity Distribution Company Limited (UEDCL), Uganda Railways Corporation (URC), and National Enterprise Corporation (NEC) Farm Katonga Limited.
Losses for NEC Farm Katonga Limited surged from Shs 70 million in the financial year 2022/23 to Shs 1.9 billion in 2023/24.
Kilembe Mines Limited saw its losses escalate from Shs 2.39 billion to Shs 21.35 billion, while UEDCL’s losses jumped from Shs 2.18 billion to Shs 10.92 billion. URC also reported a rise in losses from Shs 35.6 billion to Shs 36.34 billion.
Loss-making entities cutting their deficits
Despite still being in the red, Uganda National Oil Company (UNOC) and Uganda Airlines managed to slash their losses by 78.4% and 26.5%, respectively—an indication of improved revenue generation and cost management.
Uganda Airlines reduced its losses from Shs 324.9 billion in 2023 to Shs 237.85 billion in 2024, while UNOC cut its deficit from Shs 17.5 billion to Shs 3.78 billion.
Additionally, Uganda Air Cargo Corporation saw its losses decline from Shs 10 billion in 2023 to Shs 8.21 billion in 2024.
The findings raise serious concerns about the governance and efficiency of the loss-making entities, which continue to drain public funds.