Parliament
MPs Query Shs40Bn Locomotive Deal as Uganda Railways Struggles with Faulty Engines
Four years after Uganda Railways Corporation (URC) spent over Shs40 billion to procure four used locomotives from South African firm Grindrod, lawmakers have reignited scrutiny over the controversial purchase, with fresh revelations showing that half of the engines are now grounded and undergoing repairs.
The scandal, which first came to light in November 2021, stirred public uproar when the Uganda Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) was informed that the locomotives were incompatible with Uganda’s railway infrastructure. Then URC Workers Union secretary general, Victor Byemaro, told MPs that the locomotives were too long for Uganda’s turning junctions, known as triangles.
“They imported these locomotives not knowing that they were too long for the triangles,” Byemaro said. “They can’t turn. Since they arrived, they’ve been parked in the workshop.”
Although the issue of incompatibility was later resolved by expanding the turning triangles, URC Managing Director Benon Kaiuna told COSASE on August 6, 2025, that only two of the four locomotives are currently operational.
“The fact is, URC bought four locomotives, not eight. Now, only two are working. The others are in the workshop,” Kaiuna stated.
URC Chief Operations Officer Abubaker Ochaki defended the decision to purchase second-hand locomotives, citing urgency and the COVID-19 disruptions that had strained global logistics at the time.
“These locomotives were not brand new. We needed a fast solution as most cargo was being moved by rail, and we had no engines. It was a crisis decision,” Ochaki said. “That’s why these locomotives are sick, not dead — they just need spare parts.”
However, MPs were unimpressed by the justification. COSASE chairperson Medard Lubega Ssegona remarked, “The worst decision a poor man can make is buying an old item. An old car should be bought by a rich man who can afford constant repairs.”
Today, URC requires Shs6 billion to repair nine locomotives and about 300 wagons, raising further concerns about the sustainability of Uganda’s rail sector investments.
Bukhooli Islands MP Peter Okeyoh questioned whether other procurement options had been fully explored before settling on the South African engines. In response, Ochaki explained that at the time, Kenya had just begun scaling up its railway operations and did not have locomotives available for sale or lease.
But Elgon North MP Gerald Nangoli challenged that claim, citing findings from a fact-finding mission in Kenya. “We met your consultant in Kenya who said locomotives were being disposed of, which were better than the ones from South Africa,” Nangoli said.
The revived scrutiny comes amid broader frustrations about infrastructure mismanagement and procurement inefficiencies. With URC now asking for billions more to fix grounded assets, MPs are pressing for answers, accountability, and assurance that Uganda will not repeat such costly procurement missteps.
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