Uganda Airlines has come under intense parliamentary scrutiny after revealing a Shs 237.855 billion loss in financial year 2023/2024, according to the latest Auditor General’s report.
The Parliamentary Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) grilled CEO Jennifer Bamuturaki and her team over the financial hit, loss of passenger luggage, and the airline’s continued reliance on outdated Bombardier aircraft models.
“The largest contributors to our losses this financial year are high fuel costs, depreciation, and crew allowances. These have significantly affected our operational performance,” Bamuturaki told the committee.
Lawmakers questioned why such costly aircraft were procured in the first place. COSASE Chairperson Medard Sseggona said the decision was draining the airline’s resources.
“There is no production. When there’s no production, it means I won’t have spares. I’ll acquire them at a high cost possibly even used spares and we all know how sensitive that is in the aviation industry,” Sseggona said.
The committee resolved to summon those behind the procurement to explain themselves. “Matters of accountability don’t expire when someone leaves office. We need to know the team that participated in the procurement. Chairman, use your powers under Article 90 to summon them,” MP Nathan Itungo said.
Bamuturaki identified former CEO Ephraim Bagenda and a technical task force as the team responsible, noting that some members have since left the country while others remain in the airline’s service.
MPs also expressed frustration over Uganda Airlines’ failure to pay dividends to its sole shareholder — the Government of Uganda — for two years. “I don’t want to see these zeros again when it comes to dividends,” Sseggona warned.
Bamuturaki said 67.5% of operations are currently funded from internally generated revenues. “We are now looking to diversify our revenue streams. At the moment, we rely heavily on passenger and cargo services,” she said.
Beyond finances, the airline is battling legal cases over lost luggage and delayed cargo. “Why are people losing their baggage? And why should someone go to court to recover a bag? This is a matter that should be resolved well before litigation,” MP Nkunyingi Muwada said.
Although the airline carries some debt, sources note its debt-to-GDP ratio remains below 50% and is not seen as an immediate economic risk.
