Bad Deal for Taxpayers? Toll System Under Fire as UGX1bn Lost, 10,000 Cars Unaccounted on Entebbe-Expressway

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Tolling point at Entebbe-ExpresswayParliament’s Physical Infrastructure Committee has questioned the viability of the Kampala-Entebbe Expressway tolling system after uncovering discrepancies in toll collections, missing vehicle records and concerns over whether the government is receiving value for money from the road’s operation and maintenance contract.The committee on Thursday met officials from the Ministry of Works and Transport, the former toll operator EGIS and the current operator Pinnaco while examining the Auditor General’s report on the management of the Kampala-Entebbe Expressway.The Kampala-Entebbe Expressway, Uganda’s first tolled highway, was constructed using a USD350 million loan. Following the rationalisation of government agencies, responsibility for managing the road was transferred from the former Uganda National Roads Authority (UNRA) to the Ministry of Works and Transport.Lawmakers heard that since tolling began, the Ministry of Works and Transport has collected about 129 billion shillings in toll revenue but spent approximately 122 billion Shillings on operating and maintaining the toll system. The figures prompted MPs to question whether the tolling arrangement is delivering value for money. The committee also uncovered discrepancies between the number of vehicles recorded on the expressway and the corresponding toll collections.Internal audit reports presented to the committee showed that 586 vehicles were unaccounted for in November 2024, creating an estimated revenue deficit of 407 million Shillings. In December 2025, another 2,860 vehicles were not captured by the tolling system, while more than 7,000 vehicles went unrecorded in May 2026, resulting in revenue losses exceeding 1 billion Shillings.Members directed the ministry to explain the missing vehicle records and account for the apparent loss of public revenue. The committee further questioned the procurement and engagement of companies contracted to operate and maintain the expressway, seeking explanations on their selection, responsibilities and overall performance. Defending the performance-based maintenance contract, Ministry of Works engineer Isaac Menya told MPs that contractor payments are determined by compliance with Key Performance Indicators (KPIs).He explained that deductions are made whenever inspections identify non-functional street lighting, damaged guardrails, poor road cleanliness, defective road signs or failure to operationalise the overload control system. Menya added that 55 million Shillings has consistently been deducted because the overload control system has never become fully operational.Lawmakers also questioned why 1.6 billion Shillings allocated for installing weigh-in-motion bridges remains unspent. Ministry engineers explained that the funds were never disbursed because suitable flat sections near the toll plazas could not be identified for installation of the weigh-in-motion bridges.They said the money has since been rolled over into the next contract to facilitate installation of weigh-in-motion bridges on the Northern Bypass and activation of fixed weighbridges at the toll stations.However, committee members argued that overload control is critical to protecting the structural integrity of the expressway and questioned why the component was deferred while other contract items, including lighting and tolling infrastructure, were completed.Committee Chairperson Mwine Mpaka directed the ministry to submit a detailed breakdown of all items under the original design and construction contract, saying several inconsistencies had emerged during the inquiry. He said the committee would formally engage the companies involved to explain the discrepancies highlighted in the Auditor General’s report.The committee also scrutinised exemptions granted to certain categories of vehicles from paying toll fees. Officials told MPs that the Roads Act empowers the Minister of Works and Transport to grant toll exemptions for official government functions upon request from the responsible ministries.Legislators, however, questioned whether all exemptions were supported by the statutory instruments required under the law and demanded copies of the approvals.Ajuri County MP Fred Jalameso also raised concerns over the operation of the Automated Payment Collection Unit (APCU), an account established to temporarily receive electronic toll payments before remitting them to the government’s Consolidated Fund.Jalameso sought an explanation after the Auditor General’s report indicated withdrawals from the account despite officials maintaining that it is only intended to receive electronic payments pending automatic transfer.The committee further examined 200 million Shillings spent on capacity building under the expressway contract. Bunyole West MP James Waluswaka questioned the value of the expenditure, noting that despite the training, the ministry continues to rely on external contractors to manage the tolling system.Officials explained that 12 officers from the Ministry of Works and Transport and the National Information Technology Authority-Uganda (NITA-U) underwent training at the Indian Academy of Highway Engineers in New Delhi in March 2025.The programme covered operation and maintenance of toll roads, structuring operation and maintenance contracts, tolling systems, project development and supervision, as well as India’s institutional framework for toll road management.Officials added that although the training was financed under a 200 million Shillings provisional sum managed by EGIS, the Ministry of Works separately met the participants’ airfares and per diem expenses.The committee also learnt that Ivan Katamba, who served as General Manager of EGIS Uganda during implementation of the contract, is now General Manager of Pinnaco, the company currently managing the expressway. MPs questioned the distinction between the two companies and whether the intended transfer of knowledge had been achieved.Legislators also asked why ministry officials were trained in India instead of France, where EGIS is headquartered. Ministry officials responded that India was chosen because its toll road operating environment is more comparable to Uganda’s and offers practical experience relevant to a developing toll road system.The committee directed the ministry to submit a comprehensive report detailing the beneficiaries of the training, the expenditure incurred, the training modules undertaken and how the acquired skills have been applied in managing the expressway.-URNThe post Bad Deal for Taxpayers? Toll System Under Fire as UGX1bn Lost, 10,000 Cars Unaccounted on Entebbe-Expressway appeared first on Business Focus.