Government has allocated Shs2.07 trillion to energy development in the 2026/27 financial year, with focus on power generation, transmission, rural electrification and industrial power connections.
According to the Budget Speech, the priority projects include commencement of the 380-megawatt Kiba hydro-electricity plant, a floating solar plant at Isimba, and 500 megawatts of utility-scale solar in the Elgon and Acholi regions.
Government will also undertake preparatory work for nuclear energy generation at Buyende, expand transmission and associated substation infrastructure, support rural electrification and extend power connections to industries.
Finance Minister Henry Musasizi said reliable and affordable energy remains central to industrialisation and socio-economic transformation.
In the outgoing financial year, government continued development of hydro, solar and other energy projects, alongside preparatory work for future nuclear investments.
Uganda’s installed electricity generation capacity now stands at 2,098 megawatts. Government has set a medium-to-long-term target of 52,482 megawatts to support industrialisation, urbanisation and economic growth.
The Budget also reports progress on electricity transmission lines. These include the 132kV Kole-Gulu-Nebbi-Arua line, the 132kV Kampala Metropolitan transmission line with two associated mobile substations, the 132kV Mirama-Kabale line, the 400kV Karuma-Tororo line, the 400kV Tororo-Lessos line, the 132kV Mutundwe-Entebbe line, and the 132kV Lira-Gulu-Agago line.
Government also reported progress on substations serving industrial parks in Mbale, Kapeeka and the Kabalega Petrochemical Industrial Park.
On rural electrification, the share of rural households connected to grid electricity has nearly doubled in three years, rising from 6.8 percent in FY2021/22 to 11.4 percent in FY2024/25.
Through the Uganda Energy Credit Capitalisation Company, government has also started construction of four small mini-hydro power sites expected to generate 5 megawatts. The sites are expected to be completed in March 2027 and will supply power to hard-to-reach and remote areas.
Under the Electricity Access Scale-up Project, 419,592 off-grid solar connections have been made across the country.
The energy budget also connects to fuel security. Government says the Uganda National Oil Company continued bulk procurement of petroleum products, a move it says strengthened supply security and reduced disruption from global energy shocks.
Government also reported that UNOC acquired a 20.15 percent stake in the Kenya Pipeline Company. The Budget says the investment is intended to strengthen Uganda’s energy security and improve reliability of fuel supply, since more than 95 percent of Uganda’s refined petroleum products come through the Kenyan corridor.
The Shs2.07 trillion allocation therefore puts the energy sector on several fronts: generation, transmission, rural access, industrial power, fuel security and early nuclear preparation.
For the new financial year, government says the immediate work will be to increase generation capacity, extend transmission infrastructure, connect industries and expand electricity access to rural households.
