Ms. Dorcas Olalany, the Undersecretary Ministry of Lands, Housing and Urban Development, appearing before the Public Accounts Committee on Wednesday, 30 September 2026
By Johannah Nantongo
KAMPALA — Parliament’s Public Accounts Committee on Central Government has ordered the Ministry of Lands, Housing and Urban Development to provide a detailed account of the US$510 million borrowed under the Uganda Support to Municipal Infrastructure Development (USMID) programme.
The committee, chaired by Patrick Oshabe, halted its consideration of the Auditor General’s Report for the 2024/2025 financial year after ministry officials failed to adequately respond to questions concerning the implementation and expenditure of the programme.
A ministry delegation led by Under Secretary Dorcas Olalany appeared before the committee on Wednesday, September 30, 2026, to respond to audit queries relating to the ministry’s operations and use of public funds.
Olalany told MPs that the first phase of USMID was financed with a US$150 million World Bank loan to support 14 municipalities. An additional US$360 million was later secured to expand the programme to more urban areas.
The programme has financed the construction and rehabilitation of roads, markets and other urban infrastructure intended to improve service delivery in municipalities and cities.
MPs, however, demanded a breakdown of expenditure, including the cost of constructing individual roads, the progress of projects and how the borrowed funds have been utilised.
Mityana North MP Nsegumire Kibedi asked officials to provide specific expenditure figures for roads constructed in Entebbe and Ntungamo municipalities.
Kibedi also questioned the quality of infrastructure delivered under the second phase, saying some of the roads appeared to be of a lower standard than those constructed during the first phase.
Bunyaruguru County MP Cadet Benjamin asked officials to explain the status of incomplete USMID-funded roads, particularly projects whose contractors have taken the government to court.
Gweri County MP Herbert Edmund Ariko also questioned the failure to implement some planned projects, including the construction of abattoirs and the remodelling and beautification of mayors’ gardens.
The committee further sought clarification on the repayment schedule for the World Bank loan and the anticipated impact of the debt obligation on government finances.
“These are loans, we borrowed money and we will need to start paying back. We therefore wish to know when government intends to begin paying the first instalments,” Oshabe said.
MPs said detailed accountability was necessary given that the ministry had disclosed that government had secured another US$540 million to accelerate urban infrastructure and service delivery.
The committee directed the ministry officials to return with accurate expenditure figures, supporting documents and comprehensive responses to all outstanding audit queries before the committee proceeds with its consideration of the ministry’s accounts.