Lands Ministry Put On The Spot Over $510m World Bank Loan As MPs Demand Full Accountability
The Ministry of Lands, Housing and Urban Development has come under intense scrutiny from Parliament over the utilisation of a $510 million World Bank loan obtained under the Uganda Support to Municipal Infrastructure Development (USMID) programme. MPs on the Public Accounts Committee (Central Government) want the ministry to provide a clear explanation of how the borrowed money was used.
The committee raised the concerns on Wednesday, September 30, 2026, when Permanent Secretary Dorcas Okalany led a ministry delegation before MPs to respond to queries contained in the Auditor General’s Report for the 2024/2025 financial year. However, some of the answers provided by the officials were considered inadequate, prompting the committee to demand further information.Okalany explained that the first phase of USMID was funded with $150 million and targeted 14 municipalities.
She said an additional $360 million was subsequently released to expand the programme, taking the total financing under the initiative to $510 million.The funds were intended to improve urban infrastructure and services through projects including roads, markets and other public facilities in selected municipalities and cities. Despite the scale of the investment, MPs said they needed a detailed picture of what had been achieved, how much individual projects had cost and how much of the loan had actually been utilised.Mityana County North MP Muhamad Nsegumire pressed the ministry to disclose the amounts spent on roads constructed in places such as Entebbe and Ntungamo. He also questioned the quality of some roads delivered under the second phase, saying they appeared inferior to infrastructure constructed during the programme’s first phase.
The committee also raised questions about USMID projects that remain incomplete, particularly where contractors have gone to court. Bunyaruguru County MP Cadet Benjamin sought an explanation on the status of such roads, while Gweri County MP Herbert Ariko questioned the failure to complete planned abattoirs and the proposed renovation and beautification of mayors’ gardens.Beyond the physical projects, MPs wanted the ministry to explain Uganda’s repayment obligations and when the government expects to begin servicing the World Bank loan.
Committee chair Patrick Nsamba stressed that the money was borrowed and would eventually have to be repaid, meaning Parliament must understand how the debt will affect the country’s finances.The committee said accountability for the $510 million was particularly important after learning that government had obtained another $540 million to accelerate urban development. Ministry officials were therefore ordered to return with precise expenditure figures, supporting documents and satisfactory responses to all outstanding audit concerns before the committee can complete its review.
