MPs Probe Shs40Bn Locomotive Deal as Half of Uganda Railways Fleet Lies Idle
Four years after Uganda Railways Corporation (URC) spent over Shs40 billion on four used locomotives from South Africa’s Grindrod, Parliament has renewed scrutiny of the controversial deal, with fresh revelations indicating that two of the engines are now grounded and awaiting repairs.
The matter first came to light in November 2021 when the Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) was informed that the locomotives were initially incompatible with Uganda’s railway infrastructure. URC Workers Union secretary general Victor Byemaro told MPs at the time that the locomotives were “too long for the triangles” — the turning junctions used to reverse engines — and had remained parked in the workshop. The issue was later resolved by expanding the triangles, but questions around the procurement have persisted.
Appearing before COSASE on August 6, 2025, URC Managing Director Benon Kaiuna acknowledged that only two of the four locomotives are currently operational. “The fact is, URC bought four locomotives, not eight. Now, only two are working. The others are in the workshop,” he said.
URC Chief Operations Officer Abubaker Ochaki defended the purchase, saying the second-hand units were acquired urgently during the COVID-19 pandemic when most cargo was moving by rail and the corporation had no engines. “These locomotives were not brand new. We needed a fast solution. That’s why these locomotives are sick, not dead — they just need spare parts,” Ochaki said.
However, MPs expressed frustration over what they view as poor investment decisions. COSASE chairperson Medard Lubega Ssegona likened the purchase to “the worst decision a poor man can make” — buying an old item that requires frequent repairs.
URC is now seeking Shs6 billion to repair nine locomotives and about 300 wagons, further raising concerns about the sustainability of Uganda’s rail investments.
Bukhooli Islands MP Peter Okeyoh questioned whether better procurement options were considered at the time of purchase. Ochaki maintained they had explored alternatives, but Kenya had no locomotives to sell or lease as it was expanding its own rail services. Elgon North MP Gerald Nangoli disputed this, claiming that Kenyan locomotives available at the time were in better condition than those bought from South Africa.
The renewed probe underscores ongoing concerns over infrastructure management and procurement practices in Uganda’s railway sector. With grounded locomotives limiting capacity, Parliament is demanding assurances to prevent similar costly mistakes in the future.
