Uganda’s Parliament has intensified scrutiny of Uganda government properties worth an estimated Shs214.2 billion following concerns over rent waivers, land allocations and the performance of valuable public assets.
The Parliamentary Committee on Commissions, Statutory Authorities and State Enterprises, commonly known as COSASE, raised the concerns after carrying out a week-long inspection of government-owned properties in Mombasa, Kenya.
The lawmakers are examining how Uganda Property Holdings Limited manages the assets and whether decisions involving rent waivers and leases were carried out in accordance with the law.
COSASE scrutinises Uganda government properties
The parliamentary investigation follows concerns highlighted in the Auditor General’s 2025 report.
Among the issues attracting lawmakers’ attention are billions of shillings in outstanding rent, undeveloped prime land and government assets that appear to be generating less revenue than their commercial potential.
Uganda Property Holdings Limited, or UPHL, was incorporated in 1998 and manages properties previously owned by entities including the Lint Marketing Board, Coffee Marketing Board and Transocean Uganda Limited.
Its portfolio includes commercial buildings and land in Uganda as well as properties outside the country.
According to figures presented during the inspection, the government has 41 properties managed by UPHL. Thirteen are located in Uganda and are valued at approximately Shs81 billion, while 24 properties in Mombasa are valued at around Shs96 billion. Another four properties are located in London.
Shs4.08 billion rent arrears draw attention
One of the biggest issues identified during the Mombasa inspection involves Unifreight Cargo Handling Limited, which operates from the government-owned Mombasa carport.
The company had accumulated approximately Shs4.08 billion in rent arrears.
COSASE Chairperson Muwada Nkunyingi said the arrears had appeared in Auditor General reports since 2022, raising questions about why the matter had remained unresolved.
UPHL officials told the committee that the amount had subsequently been waived following a presidential directive.
That explanation has now become a central part of the parliamentary inquiry.
According to the committee, legal advice obtained by UPHL indicated that although a directive may have originated from the President, the waiver would still have to follow the required legal and parliamentary procedures. COSASE plans to establish whether those processes were followed.
Revenue falls below UPHL target
Questions over unpaid rent have also emerged against the backdrop of UPHL missing its revenue target.
The company had expected to collect Shs10.5 billion during the 2024/25 financial year but reportedly collected about Shs8.9 billion.
Lawmakers are therefore examining whether outstanding rent, waivers and the condition of some properties are limiting the government’s ability to earn more from the portfolio.
During their inspection, MPs also observed that some buildings were in poor condition.
UPHL Managing Director Wilbert Mugume attributed the situation partly to limited funding and said the company requires about Shs50 billion to develop some of its undeveloped prime properties.
COSASE questions government land deals
The investigation extends beyond rent collection.
COSASE is also examining land that was leased or subleased to other institutions and private entities under what UPHL described as presidential directives.
Among the properties under scrutiny are undeveloped plots in Bugolobi that were reportedly allocated to the National Enterprise Corporation, Fine Spinners and House of Coffee.
According to information presented to the committee, UPHL did not collect premiums on some of the transactions, although it retained reversionary interests in the land.
MPs now want documentary evidence showing that the directives existed and that the transactions complied with Uganda’s laws governing public property.
Mombasa consulate land also examined
COSASE also inspected land in Mombasa that had been allocated to Uganda’s Ministry of Foreign Affairs for the proposed construction of a consulate.
However, lawmakers were unable to immediately examine some of the relevant land documents because UPHL officials said they were kept at the company’s offices in Kampala.
The committee intends to review the documents as part of its wider investigation.
Another concern involves vehicles that have reportedly remained abandoned at the Mombasa carport for years. MPs said the Uganda Revenue Authority was expected to deal with some of the vehicles, including through auction where appropriate, but the matter remained unresolved.
Lawmakers fear prolonged storage could create additional costs.
UPHL says Uganda government properties remain secure
Despite concerns surrounding revenue and development, UPHL has maintained that government property under its control remains secure.
Mugume told lawmakers that the company has not disposed of the properties under its management and that it continues to hold the relevant land titles.
The assurance addresses long-running concerns about whether some government properties outside Uganda may have been sold or lost.
COSASE, however, is focusing not only on ownership but also on whether the properties are being managed in a way that provides maximum value to Ugandan taxpayers.
Parliament plans deeper investigation
The Mombasa visit is expected to be followed by further scrutiny in Uganda.
COSASE says it wants to establish whether the presidential directives cited in connection with rent waivers and land allocations can be verified and whether their implementation complied with existing laws.
The committee will also assess how much revenue the government could reasonably generate from the Shs214.2 billion property portfolio and what has prevented some assets from reaching their commercial potential.
With billions of shillings tied up in public property at home and abroad, the investigation could ultimately determine whether Uganda needs stronger controls over rent collection, property development and the allocation of valuable government land.
