The National Water and Sewerage Corporation (NWSC) has posted a landmark financial performance in the 2024/25 fiscal year, reporting an operating surplus of UGX 162 billion, it is highest ever. This figure reflects strong revenue gains, tight cost controls, and strategic investments in service expansion.
According to draft audited accounts, this surplus marks a 14% increase over the previous year. NWSC’s Managing Director, Dr. Silver Mugisha, attributes the achievement to deliberate efficiency measures, loss reduction efforts, and a focus on increasing coverage.
Core revenue from water and sewerage services rose by 5%, aided by a modest 2% tax indexation adjustment in tariffs. Meanwhile, total operating expenditures advanced only 1%, thanks to disciplined management of staff benefits, transport, and plant operations.
On the assets side, NWSC recorded a 9% growth in its total asset base from UGX 4.6 trillion to UGX 5 trillion with most increases in non-current assets (infrastructure, pipelines, treatment facilities).
The surplus has underpinned significant expansion efforts. In the year under review, NWSC brought 60,000 new household connections online and extended its pipeline network by 500 kilometres. The corporation now provides services in 282 towns across Uganda.
To further tighten operations, a key study is underway examining how overhead water tanks and meter separations influence meter accuracy. The findings are expected to feed a refined “loss adjustment factor” policy aimed at reducing non-revenue water.
NWSC currently covers about 70% of its combined operational and capital expenditure needs using internally generated funds. Over the past five years, the corporation also borrowed UGX 190 billion from local banks, fully servicing the debt without default.
Dr. Mugisha emphasized that this financing strategy gives NWSC more flexibility in execution, such as designing projects in-house and negotiating contracts more directly, rather than relying solely on external funding partners.
Despite the financial milestone, NWSC faces liquidity pressures due to delayed payments from government entities. Receivables owed by ministries, departments, and agencies (MDAs) now stretch beyond 15 months, compared to 2.5 months for non-government customers. The FY 2025/26 budget provides UGX 81 billion earmarked to clear some of these arrears a move NWSC welcomes as vital to its cash flow stability.
Looking ahead, NWSC will need to maintain discipline in operations, improve collaboration with government on receivables, and ensure that surplus funds and borrowed capital translate into better water access, reliability, and customer service across the country.