By Mulengera Reporters
Outstanding government debt to the Uganda Civil Aviation Authority (UCAA) has climbed to UGX166.6 billion as of June 2025, tightening financial pressure on the regulator and airport operator, hence raising concerns about the long-term sustainability of aviation services.
The issue was disclosed during a stakeholders’ engagement breakfast at Imperial Royale Hotel where the authority through its Director General, outlined the financial constraints affecting its day-to-day operations.
Mr. Fred Bamwesigye said unpaid fees by government entities have significantly weakened UCAA’s cash flow position, affecting routine maintenance, safety oversight, staff obligations and timely settlement of supplier contracts.
He noted that while the Aviation Authority generates revenue internally, a substantial portion of its income is tied to services provided to government agencies that remain unpaid.
According to him, the accumulation of arrears has forced the authority to prioritize essential operational expenditure, limiting financial flexibility and increasing reliance on short-term adjustments to keep critical services running.
The debt stood at UGX166.6 billion by June 2025, an amount UCAA says continues to grow in the absence of structured settlement arrangements.
Efforts to engage defaulting government agencies are ongoing, with the Ministry of Works and Transport providing support in coordinating debt-recovery discussions.
Bamwesigye warned that persistent arrears pose a systemic risk to aviation safety and regulatory effectiveness if left unresolved, noting that aviation infrastructure and oversight require predictable funding due to their high safety sensitivity and capital-intensive nature.
He argued that aviation must be recognized and financed as a strategic national service rather than treated as a peripheral revenue-generating agency, citing its direct link to national security, disaster response, medical evacuations, tourism and trade facilitation. (For comments on this story, get back to us on 0705579994 [WhatsApp line], 0779411734 & 041 4674611 or email us at mulengeranews@gmail.com).
