By Chris Mugasha
KAMPALA, Uganda — Minister for Water and Environment Gen. Kahinda Otafiire has praised the National Water and Sewerage Corporation (NWSC) as proof that government institutions can perform effectively, while pledging government support for the utility’s ambitious plan to improve water supply in 50 towns across Uganda.
“NWSC is proof that state institutions can perform,” Otafiire said, recalling a time when the corporation had been earmarked for privatization.
The minister said recent whistle-blower reports and complaints against the corporation should not necessarily be viewed negatively.
“Complaints are a sign that management is working. A moving car will always raise dust,” Otafiire said.
He added that legitimate grievances should be addressed, noting that “opposition in any organisation should be treated not as an enemy but as a mirror that helps us do better.”
Otafiire Makes Maiden Visit to NWSC
Otafiire made the remarks on Thursday, August 28, during his maiden visit to NWSC. While touring the corporation’s International Resource Centre in Bugolobi, Kampala, he urged management and staff to plan at least 20 years ahead to meet Uganda’s growing demand for safe and reliable water.
He said supplying water to every Ugandan was a national responsibility that the corporation could not leave to technocrats alone and pledged the government’s backing for NWSC.
Commending the corporation’s leadership, Otafiire said many institutions failed not because of a lack of talent but because of poor execution and management.
“In Africa, we have intelligent people with poor management skills,” he said, urging NWSC to motivate and retain employees with specialised skills.
Government Support for Local Manufacturing and Self-Reliance
The Minister also called for greater self-reliance in the water sector, saying the government was ready to support NWSC in establishing local assembly plants for imported materials such as pipes and water meters.
He said global conflicts and disruptions in international supply chains had made local production increasingly important.
NWSC Seeks UGX 650 Billion for 50 Towns Water Supply Improvement Project
NWSC Managing Director Dr Eng. Silver Mugisha presented the 50 Towns Water Supply Improvement Project, which he said Minister Otafiire had earlier encouraged the corporation to pursue.
Mugisha said the NWSC Board had reviewed and approved the project concept with amendments and would submit it to the Ministry of Water and Environment before implementation.
The project is intended to respond to increasing pressure on NWSC water networks, where average capacity utilisation has reached 85% — a level at which customers can begin experiencing water shortages.
NWSC is seeking UGX 650 billion (approximately USD 176 million) to increase water production and improve supply in 50 towns across Uganda. Most of the funding would be provided as a loan that the utility plans to repay over 20 years.
Under the proposed financing arrangement, the government would provide UGX 500 billion (approximately USD 135 million) as a concessional loan at an annual interest rate of 2%, with a two-year grace period and a 20-year repayment period.
NWSC says it would service the loan from its own commercial revenues. An additional UGX 150 billion (approximately USD 40.5 million) would be provided as a revenue grant, matching the level of support the government has extended to the utility over the past five years.
The funds would be released in five equal annual instalments of UGX 130 billion (approximately USD 35 million) between the 2027/28 and 2031/32 financial years.
Water Investment Planned Across Uganda’s Four NWSC Regions
The 50 towns selected for the water supply improvement project are spread across all four NWSC regions:
- Central Region: 14 towns — UGX 202 billion
- Eastern Region: 14 towns — UGX 178 billion
- Northern Region: Eight towns — UGX 90 billion
- Western and South-Western Region: 14 towns — UGX 180 billion
Investment allocations range from UGX 10 billion for smaller towns to UGX 30 billion for larger water systems, including Gomba and Tororo.
The project will focus on water production facilities, electro-mechanical equipment, transmission mains, storage reservoirs, distribution networks and water-quality monitoring systems.
NWSC said it plans to use in-house design and direct supervision, package works into regional and technical lots to encourage competition among domestic and regional contractors, and procure critical equipment directly from manufacturers.
To protect the investment, the corporation plans to maintain a dedicated project ledger, annual investment plans, internal audits, procurement controls and quarterly public reporting, while strengthening measures to reduce non-revenue water.
NWSC Reports Growth in Water Coverage and Customer Base
Mugisha said NWSC currently faces an investment financing gap of approximately UGX 1.436 trillion (about USD 388 million).
He said the corporation had expanded significantly, growing from serving 23 towns in 2013 to 293 towns as of June 30, 2026. During the same period, the utility’s customer base grew to more than 22 million people, while connections increased from 300,000 to more than one million.
NWSC’s annual turnover increased from UGX 120 billion to UGX 680 billion, while its asset base grew from UGX 580 billion to UGX 5 trillion, according to Mugisha.
He attributed the growth to reducing the cost of doing business and developing systems using local expertise. He appealed to the Minister not to require public institutions to adopt external systems when suitable local capacity already exists.
NWSC Expands Water Infrastructure and Service Coverage
In a separate presentation, Johnson Amayo said NWSC’s pipeline network had expanded to approximately 24,000 kilometres, while customer satisfaction stood at 82%.
He highlighted the completed Katosi water treatment plant, whose capacity has been increased to 240 million litres, with discussions underway with the Ministry of Finance for a further 80 million euros to expand water intake and evacuation infrastructure.
Amayo also pointed to the State House-directed Service Coverage Acceleration Project, which allocates UGX 30 billion annually towards providing at least one water point in every village.
Beyond the proposed financing for the 50 towns project, Mugisha asked Minister Otafiire to support the solarisation of NWSC’s power systems to reduce energy costs and promote the local manufacture of imported water-sector inputs, including soda ash, polymers, meters and generators.
NWSC Board and Ministry Pledge Support
NWSC Board Chairman Prof. Henry Alinaitwe pledged continued strategic guidance, oversight and support for the corporation.
Responding to recent whistle-blower reports, Alinaitwe said the board had commissioned an audit whose preliminary findings showed that some initiatives, including the corporation’s insurance company, were helping NWSC save money.
Representing the Permanent Secretary at the Ministry of Water and Environment, John Mary Vianne Twinomujuni pledged the ministry’s continued support for NWSC, describing it as one of the ministry’s best-performing institutions.
He said the ministry would guide the corporation to ensure that the 50 Towns Water Supply Improvement Project follows all required government processes. End.
