Parliament’s Committee on Physical Infrastructure has demanded answers from Uganda Railways Corporation (URC) over the reported sale of 81 railway wagons as scrap for Shs3.7 billion.
The committee, chaired by Hon. Mwine Mpaka, raised the concerns during an on-site inspection of URC headquarters on Tuesday, August 11, 2026, as part of an ongoing inquiry into the corporation’s operations, assets, expenditure and procurement.
The probe comes ahead of Parliament’s consideration of additional resources to support the recovery of URC after years of underinvestment and operational challenges.
Mpaka questioned URC management over the disposal of railway assets, saying the committee had established that 81 wagons had been sold as scrap.
He also raised concern over an advertisement for the sale of additional wagons in Tanzania, saying the committee had not been informed about the planned disposal.
“We have come across another advert of wagons you want to sell in Tanzania, and you had not told us,” Mpaka told URC management.
The committee said the inspection was intended to establish the current state of URC’s assets and expenditure before Parliament considers allocating more funds to the corporation.
URC Managing Director Benon Kajuna told MPs that the corporation currently has only four mainline locomotives available for cargo operations, while the Kampala-Mukono passenger service operates with five coaches.
Kajuna said URC requires more than Shs100 billion annually for five years to stabilise its operations.
The corporation is also pursuing the procurement of 10 new locomotives and 100 flat wagons with support from the African Development Bank, alongside the rehabilitation of the railway line between Mombasa and Kampala.
However, MPs questioned whether Ugandans should wait five years before seeing significant improvements in railway services.
Bunyole West County MP James Waluswaka challenged the proposed recovery timeline, arguing that URC needed to deliver results much sooner.
“When you talk about five years, that means we shall be serving the lunch at dinner time,” Waluswaka said.
He also questioned whether the procurement of new locomotives could be accelerated given the urgency of restoring an efficient railway system.
Kajuna explained that manufacturing a new locomotive takes about 2.3 years after a contract is signed because the equipment must be manufactured, tested and delivered.
The committee also revisited concerns over locomotives purchased during the 10th Parliament that reportedly struggled to operate effectively on Uganda’s metre-gauge railway.
Kajuna disputed claims that the locomotives were incompatible with the railway, explaining that their longer design created difficulties at a turning point affected by construction works for a flyover.
He further revealed that URC is facing a shortage of specialised railway personnel.
“We don't have a signalling and telecommunications engineer. We don't have an electrical engineer in the URC,” Kajuna said.
He attributed the skills shortage partly to the suspension of railway staff training in the 1990s, when government was pursuing plans to concession the railway.
Kajuna said URC is now recruiting specialised personnel and plans to establish a railway training institute under an African Development Bank-supported project.
The MPs’ scrutiny places renewed focus on the management and disposal of URC assets as Parliament weighs further funding for the corporation’s recovery.