Despite widening net losses in 2024, Uganda Clays Limited (UCL) is doubling down on its future, unveiling a bold 10-year strategic transformation aimed at stabilizing operations, modernizing production, and expanding across East Africa.
The clay products manufacturer reported a UGX 4.95 billion net loss for 2024, up from UGX 2.85 billion in 2023, largely due to escalating operational and financing costs. Yet, company leadership remains upbeat, signalling a clear roadmap for recovery.
“We have turned a critical corner,” said Eng. Martin Kasekende, UCL Board Chairman. “We are not simply reacting to the losses. We are executing a structured, future-focused plan that lays out exactly how we will recover and grow.”
While revenues rose slightly from UGX 30.4 billion in 2023 to UGX 31.6 billion in 2024 driven by steady demand for clay tiles and bricks gross profit dipped to UGX 8.2 billion. The drop was mainly attributed to increased interest expenses, which rose from UGX 1.8 billion to UGX 3.2 billion due to full-year accrual on a UGX 20 billion National Social Security Fund (NSSF) loan.
Hopes for converting the NSSF loan into equity were dashed by Parliament’s intervention, but the debt has since been restructured to ease short-term financial strain. Discussions with potential equity partners are ongoing.
“The NSSF loan remains a noose, but not a dead end,” Kasekende said. “Our performance is turning, and serious investors are taking notice.”
Uganda Clays is not alone in this struggle, The broader construction sector faces mixed signals demand driven by urbanization and public infrastructure projects on one hand, and high borrowing costs, currency volatility, and post-pandemic distortions on the other.
Still, UCL is forging ahead with a phased strategy built around three key stages: Turnaround (2024–2025), Repair (2025–2027), and Aggressive Growth (from 2027 onward).
The company’s Managing Director, Mr. Reuben B. Tumwebaze, emphasized that the plan is anchored in automation, operational efficiency, and market expansion.
“Already, 90% of the equipment for a high-capacity Italian tile production line has arrived at Kajjansi,” he noted.
“Installation is expected by late 2025. Once fully operational, this line will triple our production, cut turnaround times, and expand our product offerings.”
The Key achievements over the past four years include: Overhauling production lines at Kajjansi and Kamonkoli, Expanding clay reserves from 2.5 acres to over 140 acres—securing raw materials for the next 30 years, Procuring modern kilns and extruders to support specialty brick and affordable housing solutions, Digitizing inventory systems to improve logistics and order fulfillment.
The company also plans to broaden its reach into regional markets including Rwanda, South Sudan, eastern Democratic Republic of Congo, and western Kenya targeting areas with construction growth and limited access to quality clay products. Future product diversification will include ceramic tiles, granite, and eco-friendly materials designed for a range of income levels.
“We want Uganda Clays to be at the heart of building a modern East Africa,” said Tumwebaze. “From affordable housing to premium architectural finishes, our portfolio will cater to every segment.”
Beyond its product and market ambitions, UCL is investing in its people and sustainability. The company is now one of Uganda’s top-paying employers in the manufacturing sector and has launched employee training programs to match its modernization goals.