The House passed the motions for grant of the waivers
By Johannah Nantongo
Parliament has approved the cancellation of Shs4.46 billion in accumulated tax and non-tax arrears owed by K-Roma Limited, manufacturers of Bella Wine, and Kilembe Mines Limited (KML), following debates over the financial difficulties facing the two companies.
The resolutions were passed on Wednesday, November 11, 2026, during a parliamentary sitting chaired by Speaker Jacob Marksons Oboth.
K-Roma Limited received approval for a waiver covering Shs1.86 billion in outstanding tax obligations, comprising Shs784.4 million in principal tax, Shs300.6 million in penalties and Shs779.3 million in interest.
Local Excise Duty accounted for the largest share of the company’s outstanding obligations at Shs1.39 billion, followed by Value Added Tax (VAT) of Shs409.4 million and Income Tax of Shs65.4 million.
Presenting the report of the Committee on Finance, Hon. Patrick Ocan attributed the company’s financial difficulties partly to the effects of the COVID-19 pandemic and competition from informal wine producers.
Ocan told Parliament that K-Roma had struggled to maintain its financial position amid declining sales and growing competition from businesses operating outside the formal sector.
However, the committee also identified weaknesses in the company’s management, particularly poor inventory control and borrowing decisions. It noted that the company continued accumulating stock despite a 49 per cent decline in sales between 2021 and 2023.
The House also approved the cancellation of Shs2.6 billion in annual mineral rent arrears accumulated by Kilembe Mines Limited, a company that is 99.06 per cent government-owned.
Kilembe Mines has remained under care and maintenance since copper production stopped in 1982. Following the termination of its concession agreement with Tibet Hima Limited in 2017, the mining licence, ML 2151, reverted to the government-owned company.
The company subsequently accumulated unpaid mineral rent obligations between 2018 and 2025.
Members of Parliament attributed the arrears partly to inadequate government funding, noting that Kilembe Mines received only 28 per cent of its approved budget during the 2022/2023 financial year. The limited funding reportedly covered staff salaries and directors’ expenses.
Kigorobya County MP Gerald Kasigwa said clearing the outstanding debt would facilitate the winding-up process and complete the handover of the mines to a new joint-venture consortium comprising Sarrai Group, Uganda National Mining Company and Nile Fiberboard.
However, Leader of the Opposition Joel Ssenyonyi raised concerns about the legality and fairness of the two debt waivers, warning that selective relief could undermine voluntary tax compliance.
On Kilembe Mines, Ssenyonyi questioned whether the government had followed Section 33(1) of the Public Finance Management Act, which requires parliamentary approval before abandoning a tax claim.
He argued that an inter-ministerial committee had already agreed to write off the arrears in January 2025, raising concerns that Parliament was being asked to endorse a decision that had effectively been taken earlier.
Regarding K-Roma, Ssenyonyi described the proposed waiver as problematic, pointing out that the company’s outstanding tax arrears were nearly twice the total taxes it had paid over its 16-year operating period, amounting to Shs1.07 billion.
In response, Defence and Veteran Affairs Minister Kiryowa Kiwanuka defended the waivers, arguing that the Uganda Revenue Authority had exhausted the necessary efforts to recover the outstanding taxes without success.
He warned that pursuing the companies further could result in additional costs to government without guaranteeing recovery of the money.
In his closing remarks, Speaker Oboth urged the Ministry of Finance to increase awareness among business operators about the availability of tax waiver provisions, saying this would help struggling businesses understand and access the relief mechanisms provided by law.