Kampala, Uganda – Members of Parliament have expressed concerns over the Bujagali Hydropower Project’s tax waiver, citing alleged financial miscalculations and possible overcharging of Ugandans.
The concerns were raised during a meeting of the Committee on Finance, chaired by Amos Kankunda, where officials from Bujagali and the Ministry of Finance appeared to discuss the Income Tax (Amendment) Bill, 2025.
Herbert Tayebwa, MP for Kashongi County, questioned the basis for tariff computation, citing discrepancies in the Auditor General’s report. “We computed and found that the tariff calculation was based on incorrect figures. The tax of US$63 million from interest between 2007 and 2012 was never collected by URA,” Tayebwa noted.
Tayebwa further expressed disappointment at the government’s failure to recover the uncollected taxes. “Why has the government not acted to recover these funds despite clear evidence of miscalculation?” he asked.
Nandala Mafabi, MP for Budadiri West, accused Bujagali Energy Limited of unfair profit-making at the expense of Ugandans. “You cannot remove money from a balance sheet without making adjustments. It is criminal to redeem shares and continue charging Ugandans the same high tariffs,” Mafabi argued.
Mafabi also emphasized that Bujagali earns significant profits while Ugandans bear the burden. “They are getting a 19 percent return on investment and still making extra profits. This is cheating Ugandans under the guise of investment,” he said.
Xavier Kyooma, MP for Ibanda North, raised concerns over whether shareholders continued receiving dividends even after redeeming shares. “If they withdrew US$169 million between 2013 and 2015, did they keep earning returns as if nothing had changed? This is treacherous,” Kyooma stated.
Agnes Atim Apea, MP for Amolatar Woman, questioned the justification for continued tax waivers. “The minister must provide a clear analysis of the errors in tariff computation. We cannot approve waivers based on flawed reports,” she said.
Henry Musasizi, Minister of State for Finance (General Duties), led the government officials to the committee meeting.
The Bujagali Hydropower Project, a 250MW facility commissioned in 2012, has been a subject of controversy regarding its financial sustainability and cost to consumers. While it was initially hailed as a solution to Uganda’s power shortages, concerns over its high tariffs and continued tax waivers have sparked criticism from lawmakers and the public.
