The Independent Uganda: You get the Truth we Pay the Price
This initiative is expected to benefit one million additional residents and includes the installation of 2,600 prepaid meters in informal settlements to enhance water access
Kampala, Uganda | THE INDEPENDENT | Uganda government has secured Shs 340 billion ( €85 million) loan from the French Agency for Development (AFD) to expand water supply and urban infrastructure in the Greater Kampala Metropolitan Area (GKMA), aiming to address persistent water shortages amid rapid urbanization.
The financing agreement was signed by finance minister, Matia Kasaija, and AFD’s Regional Director for Africa, Jean-François Arnal, in Kampala on March 12. Kasaija acknowledged that Kampala’s water supply has been strained due to surging population growth and industrial expansion, outpacing investment in critical services.
Under the deal, Shs180 billion (€45 million) will fund the second phase of the Kampala Water Lake Victoria Water and Sanitation Project, aimed at rehabilitating and extending the water distribution network, particularly in North Kampala. This initiative is expected to benefit one million additional residents and includes the installation of 2,600 prepaid meters in informal settlements to enhance water access.
The remaining Shs 160 billion (€40 million) will support the Greater Kampala Metropolitan Area Urban Development Program, strengthening infrastructure coordination by the Ministry of Kampala Capital City and Metropolitan Affairs and the Kampala Capital City Authority.
“This financing is timely, as it aligns with our goal of expanding Uganda’s economy from the current GDP of $53 billion to $500 billion by 2040,” Kasaija said. “We will ensure these funds are properly utilized for their intended purpose.”
The investment, according to National Water and Sewerage Corporation, will help increase daily water production from 160 million liters to 240 million liters, ensuring adequate supply to meet rising demand.
“When we complete the Katosi, Sonde, and Naguru water infrastructure projects, we will have the capacity to produce sufficient water and distribute it effectively,” said Eng. Dr. Silver Mugisha, Managing Director of the National Water and Sewerage Corporation (NWSC).
NWSC has also sought additional funding of Shs 320 billion (€80 million) for Kampala, €34 million Shs 136 billion (€34 million) for Masaka, and Shs 176 billion (€44 million) for Bara, pending presidential approval.
AFD Regional Director Jean-François Arnal emphasized that part of the funding will prioritize climate-resilient urban infrastructure, mitigating the impact of unpredictable and extreme weather patterns.
“Considering Uganda’s location, climate change will increasingly manifest through unpredictable rainfall and flooding,” Arnal said. “Our co-financing of Shs 159.2billion (€40 million) will support urban infrastructure that enhances the resilience of cities against these effects.”
The project scope includes laying 71km of new pipeline, constructing three reservoirs, installing three booster stations, and extending services to 20 informal settlements. An additional 2,500 prepaid meters and 1,450 public stand posts will also be installed to improve water access for underserved communities.
A growing partnership with France
The project, implemented by French construction firm Sogea Satom, supervised by Artelia and Gauff Consultants Uganda Limited, commenced on Feb.1, 2025, and is expected to be completed by August 2027. Over three million people in areas such as Kira, Kasangati, Kanyanya, Gayaza Road, and Mutungo stand to benefit from the initiative.
French Ambassador to Uganda, Xavier Sticker, reaffirmed France’s commitment to Uganda’s development. “This project is a testament to the enduring friendship and cooperation between our two countries,” he said.
Since 2010, AFD has provided Shs 1.08 trillion (€270 million) in funding for water infrastructure in Uganda, supporting pro-poor initiatives that have supplied clean water to 450,000 people in informal settlements through new standpipes, schools, and public sanitation facilities.
Protecting water sources
Beatrice Anywar Atim, Minister of State for Environment, urged the population to safeguard water sources from contamination and encroachment.
“I direct Ugandans to vacate wetlands. Our water sources are wealth that must be protected,” she said. “Let’s take responsibility to ensure we do not dump waste or destroy catchment areas, including Lake Victoria.”
The government has also requested an additional Shs 597.3bn (€150 million) to further expand clean water services nationwide, underscoring its commitment to sustainable water management and infrastructure development.
