KAMPALA – The Uganda Revenue Authority (URA) spent a staggering Ugx 6.4 billion on repairing its motor vehicle fleet in the last financial year, a new audit report has revealed, raising serious questions about the economy of its ageing fleet.
The finding, from the Office of the Auditor General, scrutinized the tax body’s financial statements for the year ended 2023/2024. The audit further zeroed in on the 61 vehicles that incurred the highest repair costs, uncovering an even more startling detail.
According to the report, over the last three financial years (2021/22 to 2023/24), each of these 61 vehicles cost the taxpayer an average of Ugx 77 million in repairs. The most extreme case was a single vehicle that alone required repairs worth Ugx 106 million in just one year.
The Auditor General concluded that such exorbitant expenditure is a clear “indicator of an old uneconomical fleet,” suggesting that continuing to repair these vehicles is a poor use of public funds.
In response, URA management acknowledged the issue, attributing the high costs to the advanced age of its vehicles. They explained that the fleet has served for an average of 8 to 12 years and many have undergone major repairs. Of the 61 vehicles highlighted, 12 required complete engine overhauls. The authority also noted that 21 of the vehicles were deployed in upcountry regions and 16 were used for enforcement operations, subjecting them to rigorous wear and tear.
URA indicated that a solution is in the works, revealing that resources to the tune of Ugx 6.7 billion have been availed in the 2024/2025 financial year to acquire new vehicles. The procurement process for an additional 25 vehicles is already underway and is currently at the contracting stage, awaiting approval from the Solicitor General.
The revelation is likely to fuel further debate on the efficient use of public resources and the need for government agencies to proactively budget for asset replacement before maintenance costs spiral out of control.
