WATER CRISIS LOOMS! NWSC Begs Shs650bn To Save 50 Towns From Shortages
Otafiire made the commitment during his maiden visit to NWSC's International Resource Centre in Bugolobi since taking charge of the ministry in May
By Evans Najuna
KAMPALA: The National Water and Sewerage Corporation (NWSC) has put government on the spot, seeking a whopping Shs650 billion to boost water production and supply in 50 towns across the country as its existing systems come under increasing pressure.
Under the proposed financing arrangement, government would provide Shs500 billion as a concessionary loan at an annual interest rate of 2%, with a two-year grace period and a 20-year repayment window.
NWSC says it would service the loan from its own revenues, while another Shs150 billion would be provided as a revenue grant.
The funds would be released in five equal annual tranches of Shs130 billion during the 2027/28 to 2031/32 financial years.
The cash request received a major boost after the new Minister of Water and Environment, Gen. Kahinda Otafiire, pledged government backing for the ambitious expansion programme.
Otafiire made the commitment on Thursday, August 28 during his maiden visit to NWSC’s International Resource Centre in Bugolobi since taking charge of the ministry in May.
He told NWSC management and staff that providing clean and reliable water to Ugandans was a national duty that could not be left to technocrats alone.
The minister challenged the corporation to abandon short-term planning and think at least 20 years ahead if it is to keep pace with the country’s growing population and demand for water.
While commending NWSC’s leadership as capable managers, Otafiire warned that many African institutions collapse not because they lack intelligent people, but because of poor management and execution.
“In Africa we have intelligent people with poor management skills,” Otafiire said.
He urged NWSC to motivate and retain workers with specialised skills, saying the corporation could not afford to lose valuable expertise.
Otafiire also promised government support for NWSC to establish local assembly plants for critical water-sector materials, including pipes and meters.
He argued that global conflicts and disruptions in international supply chains had made self-reliance increasingly urgent.
The minister also weighed in on whistle-blower complaints against NWSC, saying legitimate grievances should be investigated and addressed.
He likened criticism to dust raised by a moving vehicle, arguing that an institution that is active and moving will inevitably attract scrutiny.
Otafiire urged NWSC management to treat opposition as a “mirror” that can expose weaknesses and help the corporation improve rather than viewing critics as enemies.
He praised NWSC as evidence that government-owned institutions can perform, recalling that the corporation had once been lined up for privatisation.
NWSC Managing Director Dr Silver Mugisha presented the 50 Towns Water Supply Improvement Project, saying it was designed to address increasing pressure on the corporation’s water systems.
Mugisha said the project followed a request by Otafiire for NWSC to develop a strategy for improving water supply in the selected towns.
The NWSC board has since reviewed and approved the concept, with amendments, and will forward it to the ministry before implementation.
According to Mugisha, NWSC’s average capacity utilisation has reached 85%, a level at which customers increasingly begin experiencing water shortages.
The proposed Shs650 billion investment will finance water production systems, electro-mechanical equipment, transmission mains, storage reservoirs, distribution networks and water-quality monitoring.
The 50 towns are spread across the corporation’s four regions, with 14 towns in the Central Region allocated Shs202 billion, 14 towns in the Eastern Region receiving Shs178 billion, eight towns in the Northern Region getting Shs90 billion and 14 towns in the Western and South-Western regions sharing Shs180 billion.
Individual allocations will range from Shs10 billion to Shs30 billion, depending on the size and requirements of each water system.
Mugisha revealed that NWSC currently faces an investment financing gap of about Shs1.436 trillion, underscoring the scale of resources required to keep up with its rapid expansion.
He said the corporation had grown from just 23 towns in 2013 to 293 towns as of June 30, 2026.
The utility now serves more than 22 million people, while customer connections have risen from about 300,000 to more than one million.
Turnover has also jumped from Shs120 billion to Shs680 billion, while the corporation’s assets have grown from Shs580 billion to about Shs5 trillion.
Mugisha attributed the growth to efforts to reduce the cost of doing business and the development of in-house systems and expertise.
He appealed to Otafiire to ensure public institutions are not forced to adopt expensive external systems where local expertise is already available.
In a separate presentation, Johnson Amayo said NWSC’s pipeline network had expanded to approximately 24,000 kilometres, while customer satisfaction stood at 82%.
He highlighted the Katosi water treatment plant, whose capacity has been increased to 240 million litres.
Amayo said talks were underway with the Ministry of Finance for an additional 80 million euros to expand water intake and evacuation capacity.
He also pointed to the Service Coverage Acceleration Project, under which about Shs30 billion annually is being channelled towards ensuring every village has access to a water point.
Beyond the Shs650 billion financing request, Mugisha asked the minister to support the solarisation of NWSC’s power systems to reduce the corporation’s energy costs.
He also called for government support towards local production of materials currently imported by NWSC, including soda ash, polymers, meters and generators.
NWSC Board Chairman Prof. Henry Alinaitwe pledged continued strategic guidance, oversight and support to the corporation.
On the whistle-blower allegations, Alinaitwe said the board had commissioned an audit and that findings so far indicated that some NWSC initiatives, including its insurance company, were helping the corporation save money.
Representing the Permanent Secretary at the Ministry of Water and Environment, John Mary Vianne Twinomujuni pledged the ministry’s support, describing NWSC as one of its best-performing institutions.
He said the ministry would guide the corporation through the necessary processes to ensure the 50 Towns Water Supply Improvement Project is implemented in accordance with government requirements.
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