NWSC wants UGX 650 Billion now, but its real water funding gap is UGX 1.4 Trillion
The National Water and Sewerage Corporation (NWSC) is asking government for UGX 650 billion (about USD 176 million), mostly in the form of a concessionary loan, to expand water production and supply across 50 towns. The request covers only a fraction of what the utility says it actually needs: NWSC put its total investment financing gap at about UGX 1.436 trillion (about USD 388 million).
Of the UGX 650 billion request, UGX 500 billion (about USD 135 million) would come as a government loan at 2% annual interest, with a two year grace period and a 20 year repayment window that NWSC says it will service itself from its commercial revenues. The remaining UGX 150 billion (about USD 40.5 million) would come as a revenue grant, matching the level of government support NWSC has received over the past five years. Funds would be released in five equal annual tranches of UGX 130 billion (about USD 35 million) from the 2027/28 to 2031/32 financial years.
The 50 Towns Water Supply Improvement Project responds to rising strain on NWSC's networks, where capacity utilisation now averages 85%, the level at which customers begin to feel shortages, managing director Dr Silver Mugisha told a meeting at the corporation's International Resource Centre in Bugolobi.
Where the money would go
The 50 towns span all four NWSC regions: 14 in the Central region (UGX 202 billion, about USD 54.6 million), 14 in the Eastern region (UGX 178 billion, about USD 48.1 million), eight in the Northern region (UGX 90 billion, about USD 24.3 million) and 14 in the Western and South Western region (UGX 180 billion, about USD 48.6 million). Individual allocations range from UGX 10 billion (about USD 2.7 million) for smaller towns to UGX 30 billion (about USD 8.1 million) for larger systems such as Gomba and Tororo.
The investment would go toward water production systems, electro-mechanical equipment, transmission mains, storage reservoirs, distribution networks and water quality monitoring. NWSC said it plans to deliver the works using in-house design and direct supervision, split into regional or technical lots to widen competition among domestic and regional contractors, and procure critical equipment directly from manufacturers. Oversight measures cited include a dedicated project ledger, annual investment plans, internal audit, procurement controls and quarterly public reporting, alongside efforts to contain non-revenue water.
A ministerial nod, and some pointed remarks
Gen. Kahinda Otafiire, the new Minister of Water and Environment, pledged government backing for the project on his first visit to NWSC since taking over the ministry in May. He told management and staff that supplying water to every Ugandan was a duty the corporation could not leave to technocrats alone, and urged it to plan at least 20 years ahead.
He also addressed recent whistle-blower complaints against the corporation, saying such reports were a sign that management was working, comparing it to how "a moving car will always raise dust," and adding that legitimate grievances should still be addressed. NWSC board chairman Prof. Henry Alinaitwe said the board had commissioned an audit in response, and that early findings showed initiatives such as the corporation's insurance arm were helping it save money.
On NWSC's reliance on imported inputs, Otafiire said government was ready to support the corporation in setting up in-country assembly plants for materials such as pipes and meters, telling staff that global conflicts made self-reliance urgent. Dr Mugisha, in turn, appealed to the minister not to compel public institutions to adopt outside systems where local expertise already exists, an apparent reference to pressure on state bodies to adopt standardised government IT or procurement platforms, though he did not elaborate. He separately asked for backing to solarise NWSC's power systems to cut energy costs and to support local manufacture of imported inputs such as soda ash, polymers, meters and generators.
The bigger picture
Dr Mugisha said NWSC had grown from 23 towns in 2013 to 293 as of 30 June 2026, now serving more than 22 million people. Connections have risen from 300,000 to over one million, turnover from UGX 120 billion to UGX 680 billion, and assets from UGX 580 billion to UGX 5 trillion over the same period. He attributed the growth to cutting the cost of doing business and building systems in-house.
In a separate presentation, Johnson Amayo said NWSC's pipeline network had grown to about 24,000 kilometres and customer satisfaction stood at 82%. He cited a completed treatment plant at Katosi, now upgraded to a capacity of 240 million litres, with talks underway with the finance ministry for a further 80 million euros to expand intake and evacuation capacity. He also referenced a State House-directed Service Coverage Acceleration Project channelling UGX 30 billion a year toward providing a water point in every village.
Representing the ministry's permanent secretary, John Mary Vianne Twinomujuni described NWSC as one of the ministry's best-performing institutions and pledged support in guiding the 50 towns project through the required approval processes.
