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Uganda Air Cargo Seeks Shs380bn for Fleet Replacement Amid Viability Concerns

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Uganda Air Cargo Seeks Shs380bn for Fleet Replacement Amid Viability Concerns
Cargo

The Uganda People's Defence Forces (UPDF) have requested an additional Shs381 billion to recapitalize Uganda Air Cargo, citing the urgent need to replace its aging fleet and address ongoing operational challenges.

The request was presented by Donozio Kahonda (Ruhinda South) before the Budget Committee during discussions on the 2025/26 Budget Framework Paper for the Ministry of Defence, sparking intense debate over the justification for continued taxpayer funding.

Kahonda explained that Uganda Air Cargo, already burdened with debt, has faced significant setbacks.

"The two C-130 aircraft have been grounded for years. One was repaired last financial year but suffered catastrophic engine damage due to a bird strike shortly after its return to service," he said.

"The smaller aircraft have also faced challenges, including one trapped in the Sudanese war zone, with recovery efforts stalled despite attempts to push through insurance claims."

Cabinet had approved a directive to allocate Shs381 billion for the acquisition of new aircraft, with manufacturers advising against repairing the damaged C-130, citing high repair costs and its limited remaining lifespan of 40,000 hours.

The proposal, however, has been met with criticism from lawmakers questioning the sustainability of continued funding for Uganda Air Cargo.

Dickson Kateshumbwa (Sheema Municipality) raised concerns about the duplication of roles between Uganda Air Cargo and Uganda Airlines.

"Why should Ugandan taxpayers fund two separate entities? Merging the two could save resources," he argued.

Kateshumbwa also criticized inefficiencies in other government institutions, including the Uganda Police Force, for maintaining grounded aircraft at public expense.

Critics have called for a comprehensive audit of Uganda Air Cargo's operations, expenses, and long-term viability, with some pushing for the dissolution of the agency and the transfer of its responsibilities to Uganda Airlines.

As the Ministry of Defence faces mounting pressure, the future of Uganda Air Cargo and its request for Shs381 billion remains a contentious issue in Parliament.

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