National Water and Sewerage Corporation (NWSC) has called on Parliament to intervene in the escalating unpaid water bills, which have crippled the Corporation’s operations. As of September 2024, the Government owes NWSC a staggering UGX97.441 billion, creating a financial strain that has hindered service expansion and infrastructure development.
The issue was brought to light during a joint committee session on February 12, 2025, where administrators from key security agencies—Ministry of Defence, Uganda Police, and Uganda Prisons—outlined their struggles in managing these debts. They were responding to concerns raised by NWSC, which highlighted the dire need for Parliament’s intervention.
Struggling Security Agencies
Led by Minister of Defence Jacob Oboth, the Ministry of Defence revealed that the Uganda People’s Defence Forces (UPDF) faces a UGX30.675 billion debt, exacerbated by increased water tariffs and the growing need for water due to expanding infrastructure projects. Edith Buturo, Under Secretary at the Ministry of Defence, admitted that the military’s water deficit stands at UGX15 billion annually, with projections indicating that the debt could rise to UGX36.3 billion by the end of the 2024/25 financial year.
Similarly, Uganda Police Force has an outstanding water debt of UGX24.679 billion, part of a broader UGX112 billion arrears. Deputy Inspector General of Police, James Ochaya, explained that the Police Force serves over 195,000 people, including officers, their families, and the public. However, their current payment commitment of UGX1 billion is insufficient to cover the growing debt.
Uganda Prisons also faces severe challenges, with UGX19.442 billion in unpaid water bills. Samuel Emiku, Under Secretary at Uganda Prisons, detailed the overwhelming burden of servicing 79,280 inmates, which includes both convicted criminals and remand prisoners. The Prisons’ water debt contributes to the larger financial issues the agency faces, exacerbated by severe overcrowding, with inmate numbers exceeding 370% of their capacity.
Call for Accountability
The situation has drawn sharp criticism from MPs, particularly Geoffrey Ekanya (Tororo North), who questioned the failure to implement the presidential directive of installing solar-powered deep wells at Police and Prisons facilities. He urged the Government to prioritize these projects to alleviate reliance on NWSC and curb mounting water bills.
Rose Obigah (Terego DWR) voiced her frustration with the Uganda Police leadership, accusing them of prioritizing unfit housing solutions over proper accommodation for officers. She argued that the ongoing use of hot uniports has increased water consumption, contributing to the rising water bills.
NWSC’s Financial Struggles
Silver Mugisha, Managing Director of NWSC, testified before Parliament on February 11, 2025, outlining the financial difficulties caused by the Government’s unpaid water bills. According to Mugisha, the Corporation is unable to finance crucial infrastructure projects or meet its financial obligations due to the accumulating debt. The Auditor General’s 2024 report revealed that NWSC’s total arrears amounted to UGX355 billion, with 20% of that sum related to unpaid Government bills.
Mugisha further explained that the Corporation has been forced to pay VAT on invoices before receiving payment for services rendered to Government Ministries, Departments, and Agencies (MDAs). This has strained NWSC’s cash flow, with VAT obligations amounting to UGX14.863 billion for the UGX97.441 billion in unpaid bills.
Legislative Action
In response, MPs proposed several solutions to resolve the crisis. Ekanya suggested that budgets for water bills from key sectors such as hospitals and security agencies be ring-fenced at the Ministry of Finance and paid directly to NWSC to avoid delays. Additionally, NWSC has requested Parliament to consider adopting a policy that requires MDAs to remit VAT on water bills to ensure the Corporation’s financial stability.
MPs expressed concern about the wider implications of unpaid water bills, particularly for local manufacturers who supply water-related equipment to NWSC. They noted that delayed payments have affected the ability of these suppliers to maintain operations, potentially undermining the Government’s industrialization efforts.
As the situation continues to worsen, both the security agencies and NWSC are facing mounting pressure to find sustainable solutions to the ongoing debt crisis.
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