KAMPALA, Uganda – The Uganda Railways Corporation (URC) has dismissed reports alleging that more than UGX 25 billion was spent exclusively on training its staff, saying the claims misrepresent a broader capacity-building programme financed under a Spanish government loan.
In a detailed clarification issued on Friday, URC explained that following the termination of the Rift Valley Railways (RVR) concession on January 25, 2018, the Government of Uganda directed the corporation to immediately take over and sustain railway operations.
The corporation said a comprehensive assessment was subsequently conducted to identify investment priorities in railway infrastructure, rolling stock and human resource capacity.
As part of these efforts, the Government secured a €28.96 million loan from Spain in 2019, under which Spanish firms Consultrans and Imathia were contracted to implement several components of the railway rehabilitation programme.
According to URC, the project covered detailed engineering designs for the rehabilitation of the Kampala–Namanve and Namanve–Mukono railway sections, preliminary designs for the Kampala Multimodal Hub, supply of 4,605 UIC 54E1 rails, rehabilitation of the 26.8-kilometre Kampala–Mukono railway line, and capacity building for URC personnel.
The corporation clarified that the €4.821 million allocated to the capacity-building component—equivalent to about UGX 20.84 billion at current exchange rates—was not dedicated solely to staff training, contrary to reports circulating in sections of the media and online.
URC explained that refresher courses for its employees formed only one part of the programme. The budget also catered for operational costs incurred by the contractor during its three-year engagement in Uganda, including remuneration for international experts, Ugandan personnel and other implementation-related expenses.
The corporation further emphasized that all project funds were disbursed directly to the contractor in Spain, adding that no money was transferred directly to URC for expenditure.
“Although these funds have been presented as having been spent exclusively on training URC staff, they were not,” the corporation said.
Major Railway Projects Progressing
URC also provided an update on ongoing infrastructure projects aimed at revitalising Uganda’s railway network.
The corporation said rehabilitation of the Tororo–Gulu metre-gauge railway line is progressing steadily, with construction works currently reaching Lira, while project completion and handover remain scheduled for October 2026.
Station rehabilitation is also underway along the corridor, including Mbale, Kumi, Soroti, Achuna, Lira and Gulu.
In addition, URC is implementing an African Development Bank-funded modernisation programme, which includes installation of concrete sleepers on the Malaba–Jinja, Kampala–Kyengera and Port Bell railway lines, procurement of diesel-electric locomotives, 100 high-capacity wagons, LPG tank wagons and construction of a 1,500-tonne multipurpose water vessel.
Passenger transport infrastructure is also being expanded, with new passenger hubs under construction at Namanve and Kyengera, while a new hub in Mukono is planned ahead of the 2027 Africa Cup of Nations (AFCON). The corporation also intends to extend passenger rail services to Jinja and procure additional passenger facilities.
URC noted that it has resumed transportation of domestic cargo within Uganda, describing the move as part of efforts to increase the railway’s contribution to national logistics and trade.
On railway safety, the corporation said manual barriers are being installed at high-risk level crossings, while the Uganda Police Force has deployed 100 officers to protect railway infrastructure and manage traffic at critical crossing points. Procurement of automated railway crossing systems is also underway.
URC said the ongoing investments are intended to strengthen Uganda’s railway infrastructure, improve operational efficiency and support the country’s long-term transport and economic development objectives.
