MPs Dissatisfied with KCCA’s 12-Bn Diversion Meant for Road Loan Fund

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Following the meeting held on Tuesday, July 4th, 2023, the Committee on National Economy was dissatisfied with Kampala Capital City Authority’s (KCCA) decision to utilise a Shs12 billion roads loan for staff capacity enhancement and retooling and community mobilisation.

According to Allan Atugonza, Buliisa County MP, there is a lack of consistency and planning within the city’s authorities, referring to a previous meeting with KCCA officials.

“If we are telling people that we do not have money for compensation and here we are building the capacity of staff to increase productivity, the same staff that managed the different projects, I find it a waste of funds,” Atugonza said.

The necessity and appropriateness of using the funds meant for road development for capacity building and training are dis-satisfactory and need reconsideration.

Hon. Stephen Mugabi Baka Bukooli, North County Member of Parliament, highlighted the recurring pattern of allocating borrowed funds for capacity building in each financial year.

“The programme for nine local governments of the Greater Kampala Metropolitan Area, Kira, Mukono, Nansana, Entebbe, Makindye-Ssabagabo, Wakiso, and Mpigi, US$608.66 million will be used for urban development meant for roads, drainages, and urban planning services, among others,” Mugabi stated.

He added that the move by the KCCA has drawn criticism from Members of Parliament, who question the necessity and appropriateness of using the funds meant for road development for capacity building and training.

However, the KCCA Executive Director, Dorothy Kisaka, defended the authority’s stand by stating that although roads are critical, in order for the authority to perform well and get other road projects and funding, there is a need to enhance the capacity of staff.

“We are not diverting funds from road maintenance to capacity building, but the entity needs staff whose strength is boosted.  We would like to see the loans performing even better,” she said.

Kisaka stated that for KMP’s allocation of US$130 million, over Shs800 million will be used for retooling, Shs400 million for community mobilisation, Shs920 million for staff capacity building, Shs300 million to undertake a citizens satisfaction survey, and Shs750 million for governance, which involves setting up a KCCA legal library and project oversight by the council.

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