COSASE Summons Uganda Airlines Bosses Over Shs1.9tn Investment, Shs235bn Loss

The Parliamentary Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) has summoned top managers of Uganda Airlines to explain the airline’s financial performance and audit queries raised in the Auditor General’s 2024/25 report.

The summons were issued through police after Uganda Airlines officials failed to appear before the committee and did not communicate any reason for their absence.

The committee, chaired by MP Muwada Nkunyingi, had expected the officials to answer questions about the more than Shs1.9 trillion that Government has invested in the national carrier.

The Auditor General’s report indicates that Government has injected about Shs1.984 trillion into Uganda Airlines, but only Shs200 million had been recognised as issued share capital.

This means a massive portion of the money injected by Government had not been reflected as issued share capital in the company’s accounts.

The committee was also concerned about the airline’s continued losses. According to the audit findings, Uganda Airlines recorded a loss of about Shs235 billion during the year under review.

The losses included penalties of about US$1.78 million arising from late payments to fuel suppliers.

Budadiri East MP Julius Nakiyi told the committee that the Government’s investment had effectively been eroded by accumulated losses. He said about Shs1.3 trillion of the investment had been eaten away by losses, leaving the airline with an estimated net worth of about Shs660 billion.

Nakiyi said Parliament’s interest was not to destroy the airline but to ensure that it operates as a viable business.Another MP said Parliament should work with Uganda Airlines to address the challenges affecting its operations.

Butalega MP for Persons with Disabilities Bumali Mpindi said he had heard concerns that interactions between Parliament and Uganda Airlines, particularly when covered by the media, were creating more problems for the airline instead of solving them.

Elgon MP Gerald Nangoli also complained about what he described as persistent difficulties in getting the airline to account before the committee.

He said Uganda Airlines had become a problematic entity for the committee, with officials allegedly appearing to consider themselves too powerful to account to Parliament.

Makindye East MP Zahara Namuli said no Government entity should use parliamentary authority as a shield to avoid accountability.

She cited recent guidance from Speaker Jacob Marksons Oboth that entities previously shielded by the authority of Parliament’s leadership should no longer rely on such protection to avoid appearing before committees.

The committee chairman said Uganda Airlines must appear before COSASE on the committee’s terms and not dictate when or how it should account. He subsequently directed that summons be issued requiring the airline’s officials to appear before the committee on Thursday at 8:00am.

Nkunyingi said the committee would follow up the summons with the Office of the Clerk and Parliament’s Speaker to ensure they are delivered.

The summons come amid allegations by some MPs that Uganda Airlines was among entities that had previously been shielded from appearing before parliamentary committees.

Uganda Airlines officials are expected to appear before COSASE on Thursday to respond to the audit queries.

Uganda Airlines has recorded several positive developments since its revival in 2019, despite the financial challenges facing the national carrier.

The airline’s revenue increased from about US$10.3 million in FY2019/20 to US$116.2 million in FY2024/25, showing growth in its commercial operations. The carrier has handled more than 1.7 million passengers since its revival, indicating growing demand for its services.

At its 2026 Annual General Meeting, Uganda Airlines reported a 22 percent increase in revenue to Shs437.3 billion and a 27 percent reduction in net losses. The airline is continuing to add destinations. New routes to Accra, Ghana, and Kigali, Rwanda, are expected to increase its network to 19 destinations.

Uganda Airlines operates a relatively young fleet, including Airbus A330-800neo aircraft for long-haul operations and CRJ900 aircraft for regional routes. The carrier has expanded beyond its original regional operations to serve destinations in Africa, the Middle East, Europe and Asia. Beyond commercial returns, Uganda Airlines gives the country a national carrier capable of providing direct connections that can support tourism, trade, investment and business travel.

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