Uganda’s Parliament approved waivers worth Shs4.46bn ($1.1mn) on Wednesday 11 November for Kilembe Mines and the winemaker K-Roma, clearing arrears that the opposition leader said had been handled out of legal order.
The write-off of Shs2.6bn in mineral rent owed by Kilembe Mines removes an obstacle to handing the dormant copper mine to a new joint venture, according to a statement from the Parliament of Uganda. The dollar figures use a rate of about 4,050 shillings, which the central bank governor cited this week.
What did Parliament approve for Kilembe Mines?
MPs approved a write-off of Shs2.6bn (about $640,000) in non-tax revenue, made up of annual mineral rent that Kilembe Mines Limited accumulated between 2018 and 2025. The House was chaired by the Speaker, Jacob Marksons Oboth.
The company is 99.06 per cent owned by the government and has been under care and maintenance since copper production stopped in 1982, the statement said. Its mining licence reverted to the company in 2017, when a concession with Tibet Hima was terminated.
MPs attributed the default to state underfunding. In the 2022/23 financial year the government released only 28 per cent of the company’s approved budget, which covered staff wages and directors’ expenses, they said.
Gerald Kasigwa, the MP for Kigorobya County, said clearing the debt paved the way for winding up the company and completing the handover of the mine to a consortium of Sarrai Group, the Uganda National Mining Company and Nile Fiberboard. The mines ministry asked the finance committee for the waiver in August.
Why did K-Roma get relief?
The waiver for K-Roma, which makes Bella Wine, covers Shs784.4mn in principal tax, Shs300.6mn in penalties and Shs779.3mn in interest, about Shs1.86bn in all. Local excise duty accounted for Shs1.39bn, or 74.5 per cent of the arrears, with value added tax of Shs409.4mn and income tax of Shs65.4mn.
Patrick Ocan, who presented the finance committee’s report, said the company’s finances had been damaged by the Covid-19 pandemic and by competition from informal winemakers. The committee also faulted K-Roma for poor inventory and borrowing decisions, noting that stock kept building up while sales fell 49 per cent between 2021 and 2023.
What did the opposition say about the Kilembe Mines waiver?
Joel Ssenyonyi, the leader of the opposition, said the government had in effect abandoned the Kilembe Mines claim before coming to Parliament, contrary to section 33(1) of the Public Finance Management Act. He said an inter-ministerial committee had sat in January 2025 to write off the arrears.
“The committee report is asking us to do a reverse to what the law says, that Parliament must approve before the tax claim is abandoned,” Ssenyonyi said.
On K-Roma, he described it as an “untidy” position to waive arrears about double the Shs1.07bn the company had paid in tax over 16 years, and said such decisions would discourage voluntary compliance.
Kiryowa Kiwanuka, the minister for defence and veteran affairs, replied that the Uganda Revenue Authority had done all that was necessary to collect the tax and failed, and that pressing the companies further would cost the government more.
What happens next?
The Speaker asked the finance ministry to inform businesses about eligibility for waivers, saying some struggling companies may be unaware of the provision. The statement did not give a date for the handover of Kilembe Mines or record a vote count.
A day later MPs approved a separate Uganda tax waiver for the state printer UPPC and Ankole Western University. The decisions come as offshore investors return to the country’s debt market and the Uganda shilling steadies.
FAQ
How much did Kilembe Mines owe?
Kilembe Mines owed Shs2.6bn in annual mineral rent that built up between 2018 and 2025, according to Parliament. MPs approved writing it off on 11 November.
Who will take over Kilembe Mines?
An MP told the House the mine is to be handed to a joint venture of Sarrai Group, the Uganda National Mining Company and Nile Fiberboard. No handover date was given.
What is K-Roma?
K-Roma Limited is a Ugandan company that makes Bella Wine. Parliament approved a waiver of about Shs1.86bn in tax, penalties and interest that it owed.
Why was the decision criticised?
The opposition leader said the government wrote off the mine’s arrears before Parliament approved it, and that the K-Roma relief was about twice what the company had ever paid in tax.
