By Naome Namusoke/ KMA Updates
Parliament’s Budget Committee has raised fresh concerns over the National Water and Sewerage Corporation’s (NWSC) ability to finance critical water infrastructure projects after revelations that the utility’s plan to mobilize over UGX600 billion from domestic commercial banks has been significantly hindered by outstanding government water bill arrears.
While appearing before the committee, Herbert Ariko, Chairperson of Parliament’s Committee on Environment and Natural Resources, disclosed that NWSC had intended to secure the funding from local banks to expand and improve water infrastructure across several towns in Uganda. According to Ariko, each town requires an estimated investment of between UGX19 billion and UGX20 billion to meet infrastructure demands.
However, Ariko noted that the corporation’s creditworthiness in the financial market has been weakened due to unpaid water bills owed by government Ministries, Departments and Agencies (MDAs). As of December 2025, the outstanding arrears stood at approximately UGX69.94 billion across 40 MDAs.
“However, the ability of NWSC to mobilize financing has been curtailed in the market, especially due to the outstanding government arrears totalling about UGX69.94 billion from the 40 MDAs as of December 2025. These are the issues that have curtailed National Water in getting their own funding to help us develop water infrastructure in the country,” Ariko told the committee.
He further revealed that although Parliament had earlier recommended the allocation of UGX81 billion to clear all water bill arrears up to zero by June 2025, the funds were not fully remitted to the respective MDAs. Instead, new arrears accumulated between July and December 2025, pushing the debt back toward the UGX80 billion mark or potentially higher.
Ariko emphasized the need for stronger compliance and accountability mechanisms to ensure that funds appropriated for settling water bills are remitted to NWSC. He warned that failure to address the issue could continue to undermine the corporation’s financial stability and delay essential infrastructure development.
Members of the Budget Committee echoed similar concerns, with Vice Chairperson Remigio Achia urging that the matter be escalated directly to the Ministry of Finance. Achia questioned the rationale behind channeling funds through MDAs that ultimately fail to clear their obligations.
“This matter should be captured and reported to the Ministry of Finance. Because why did they insist on giving money to the people who don’t pay?” Achia remarked. He added that the issue should be prioritized in the ongoing budget process, stating that the first call should be on the UGX69.4 billion in outstanding arrears.
Moses Aleper, Vice Chairperson of the Finance Committee, committed to ensuring that the issue of unpaid water bills is formally discussed with the Ministry of Finance and Treasury Operations. He assured the committee that the matter would be brought to light and followed up to prevent further accumulation of debt.
Achia also faulted the Ministry of Finance for failing to remit the funds intended for clearing water arrears directly to NWSC, arguing that entrusting MDAs with the money has often led to diversion of funds to unrelated expenditures.
The revelations highlight growing concern within Parliament over financial discipline among government entities and the broader impact of unpaid utility bills on national infrastructure development. Lawmakers warned that unless decisive action is taken, NWSC’s expansion plans and service delivery could remain constrained, ultimately affecting access to clean and reliable water across the country.
