KIGEZI TOURISM ROADS SCAM! How Questionable Egyptian Firm SAMCRETE Pocketed Sh17Bn Advance & Abandoned Shs112BN Tourism Roads as Questions Mount Over AfDB Procurement
By Our Reporter
KIGEZI: Fresh details have emerged over the controversial collapse of two multi-billion-shilling tourism road projects in the Kigezi sub-region, with Egyptian contractor Samcrete Engineers and Contractors facing scrutiny after abandoning works despite receiving a hefty advance payment, while questions are now being raised over how the company secured the contracts.
The Egyptian firm was awarded contracts worth Shs112 billion in June 2025 to upgrade the 8.4-kilometre Kabale–Lake Bunyonyi Tourism Road to bitumen standard and construct the 13.4-kilometre Nyarusiza–Mgahinga Tourism Road in Kisoro District, linking Kisoro Town to the famous Mgahinga Gorilla National Park.
However, less than a year into the projects, Samcrete suspended construction works, withdrew workers and equipment from both sites and left residents stranded, triggering anger among leaders, businesses and tourism operators who had expected the roads to unlock economic opportunities in the region.
The contractor’s sudden exit has now sparked questions over the procurement process, contractor capacity and whether the African Development Bank (AfDB), which financed the projects, made adequate checks before approving the company.
Deputy Speaker of Parliament Thomas Tayebwa has revealed that Samcrete was not selected through Uganda Government procurement procedures but through the African Development Bank’s procurement framework because the projects were financed by the bank.
Speaking during the burial Mass of Mary Bazirake, wife of former Kabale Southern Division LCIII Chairperson Louis Bazirake, at Christ the King Catholic Parish in Kabale District, Tayebwa said Uganda’s priority was to secure financing for the roads, after which procurement was handled under AfDB rules.
According to Tayebwa, government did not directly select Samcrete under Uganda’s national procurement system.
“When the African Development Bank approved financing for these projects, procurement was done under the bank’s procedures,” Tayebwa said.
He added that government has already notified AfDB about Samcrete’s failure to execute the works and discussions are ongoing to replace the contractor with a company capable of completing the stalled roads.
The revelation has raised questions among stakeholders over whether AfDB procurement systems allowed a contractor whose capacity was allegedly questionable to win a major Ugandan infrastructure project.
The two tourism roads were designed to improve access to some of Uganda’s most attractive destinations, including Lake Bunyonyi and Mgahinga Gorilla National Park, while boosting tourism, trade and connectivity in the mountainous Kigezi region.
But in late May 2026, Samcrete abruptly suspended works and removed its workers and equipment from the sites without publicly explaining the decision.
The stalled projects forced leaders in Kabale District, through the Office of the Resident District Commissioner, to petition the Office of the President seeking urgent intervention.
Earlier this month, State Minister for Works and Transport Fred Byamukama told Parliament that government was considering terminating Samcrete’s contracts after establishing that the company lacked the capacity to complete the works.
He said the Ministry of Works and Transport had already engaged both the African Development Bank and the Ministry of Finance over the proposed contract termination.
Ndorwa West MP Eliab Naturinda Mporeera also raised concerns, alleging through local media that Samcrete had already received 30 percent of the contract value before abandoning the projects.
The legislator claimed the company had hired equipment from local operators in Kabale instead of deploying its own machinery, questioning how it qualified for the contracts in the first place.
However, Tayebwa dismissed the claim that the contractor had received 30 percent of the contract amount.
He insisted that the reports were false and that Samcrete had not been paid by the Ugandan government.
The Deputy Speaker said AfDB’s top management has now launched investigations into how Samcrete was awarded the contracts despite concerns over its ability to deliver.
He added that he had briefed President Yoweri Museveni about growing frustration among residents of Kigezi over the stalled projects.
Tayebwa appealed for calm, assuring residents that government was working with AfDB to resolve the crisis and ensure the roads are completed.
AUDITOR GENERAL RAISES RED FLAGS BEFORE PROJECT COLLAPSE
The controversy comes amid troubling findings in the Auditor General’s report for 2025 on the Kabale–Lake Bunyonyi and Kisoro–Mgahinga National Park Integrated Transport Infrastructure and Services Project.
The audit revealed slow implementation, low absorption of funds, delayed compensation and failure by the contractor to fully mobilise despite receiving billions.
According to the Auditor General, the project had total financing of UA50 million, but by June 30, 2025, cumulative disbursements stood at only UA9.8 million (US$13.178 million).
This represented a disbursement rate of only 19.6 percent, leaving an undisbursed balance of UA40.2 million (US$54.052 million).
The slow implementation forced government to incur commitment charges amounting to US$1.252 million as of June 30, 2025.
The Auditor General warned that the charges were likely to increase because the project had been extended to August 2029.
The audit also revealed poor utilisation of government funds.
Out of the total available government funds of Shs83.167 billion for the financial year 2024/2025, only Shs34.503 billion had been spent.
This left Shs48.663 billion unused, resulting in a low overall absorption rate of only 41 percent.
The report further revealed that the civil works contractor received an advance payment of Shs16.804 billion on March 24, 2025, but by August 2025 had still not fully mobilised to commence capital works.
The findings raised fresh questions over whether the contractor had the financial and technical capacity to execute the projects.
WHO IS SAMCRETE?
Samcrete Engineers and Contractors is part of Samcrete Holding, an Egyptian engineering, contracting, development, manufacturing and investment group established in 1963.
The company says it operates in Egypt, the Middle East and Africa through construction projects, real estate development, building materials production, public-private partnership infrastructure projects and industrial park development.
According to its corporate profile, Samcrete has more than 5,000 employees, operates through 13 subsidiaries and has been involved in more than 100 projects.
The company is led by Eng. Sami Saad, founder and CEO of Sami Saad Holding.
Its chairman is Eng. Karim Sami Saad, while Eng. Sobhi Abdel Malak serves as deputy chairman.
Other board members include Eng. Bassel Sami Saad, Eng. Reem Sami Saad and independent board member Dr. Ziad Bahaa El Din.
Samcrete describes itself as an international-standard engineering company with operations across five countries and more than six decades of experience.
The company lists several major projects, including:
- Ismailia Freeway Urban Ring Road
- Cairo-Suez Service Road
- Greater Cairo Ring Road expansion projects
- Middle Ring Road in Greater Cairo
- Upper Railway Rehabilitation Project between Beni Suef, Asyut and Nagaa Hammadi
The company says these projects involved road construction, railway rehabilitation, bridge works, pavement works and infrastructure upgrades.
However, questions remain over whether all the listed projects were successfully completed or whether some faced similar challenges.
Outside Egypt, Samcrete’s publicly available project portfolio provides limited evidence of major completed road projects.
The company previously participated in Uganda’s procurement process under the Markets and Agricultural Trade Improvement Programme Project 2 (MATIP-2) for construction of Tororo Central Market, but its bid was rejected.
SAMCRETE’S UGANDA ANNOUNCEMENT
Before the controversy erupted, Samcrete had celebrated its entry into Uganda’s infrastructure sector.
The company announced the commencement of the Kabale–Lake Bunyonyi and Kisoro–Mgahinga Roads Project, describing it as a major milestone.
Samcrete stated that the 33.2-kilometre project, undertaken in partnership with Uganda National Roads Authority (UNRA) and funded by the African Development Bank, would improve connectivity, expand access to tourism destinations and contribute to socio-economic growth.
The company said the project included major roadworks and supporting infrastructure to be executed to international quality standards.
However, the sudden suspension of works has now turned the project into a major infrastructure controversy, leaving government, residents and tourism stakeholders demanding answers over how a contractor entrusted with a Shs112 billion assignment walked away from the job.
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