Uganda Railways Cuts Annual Losses By 67%

By Muhamadi Matovu

Uganda Railways Corporation (URC) has reported a sharp reduction in its annual operating losses, signalling progress in efforts to revive the state-owned transport utility.

According to financial results released Tuesday, the corporation's net operating loss dropped to Shs 17.05 billion in the 2024/25 financial year, down from Shs 51 billion in 2023/24 a 67 percent improvement. The operating loss margin improved from -172 percent to -43 percent.

"This development demonstrates that the reforms being implemented to improve efficiency, strengthen financial management, and enhance service delivery at the corporation are bearing fruit," said Benon M. Kajuna, URC's Managing Director. "We are encouraged by this positive trend, and we remain committed to building a stronger, more reliable railway for Uganda and the region."

Despite the progress, URC's accumulated losses rose to Shs 462.2 billion from Shs 444.9 billion due to historical deficits.

However, the corporation noted that the pace of new losses has slowed, crediting improved revenue collection, tighter cost control, and enhanced financial reporting.

Looking ahead, URC said it will focus on increasing freight volumes, diversifying revenue streams, sustaining strict expenditure management, securing government compensation claims, and fast-tracking digital transformation to improve accountability and efficiency.

The corporation thanked the Government, development partners, and other stakeholders for their continued support, pledging to sustain the momentum towards profitability and long-term growth.

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