Bujagali Energy Tax Exemptions Uganda: ICPAU Demands Permanent Fix with Local Shares by 2032

Financial experts scrutinise the ongoing Bujagali Energy Limited’s tax exemptions and urge Parliament to end repeated extensions with a long-term solution.

ICPAU officials voice concern over the hydropower project’s “endless” tax waiver renewals. They argue these create uncertainty and burden lawmakers unnecessarily. Silajji Kanyesigye Baguma told Parliament that legislators had already handled this issue more than three times without resolution.

Kanyesigye stressed, “We need a lasting solution so that by 2032, they either start paying taxes or the government pursues another alternative.” Bujagali hydropower powers much of Uganda’s electricity grid. Tax incentives have long supported its financial viability. Critics now call these extensions repetitive and unsustainable.

West Budama North MP Maximus Ochai noted ICPAU‘s frustration in their submission. He pressed the institute to clarify its stance on the proposed 2032 extension. Ochai said, “You sounded coerced on Bujagali. We need your exact position and required conditions.”

Kanyesigye clarified they don’t reject the exemption outright. Instead, they want conditions that benefit Ugandans long-term. He explained, “We shouldn’t legislate yearly on the same matter. Grant the exemption, but require offloading shares to the local community so dividends stay in Uganda.”

This mirrors reforms in other sectors, where firms boost local ownership. Ugandans holding shares would create a win-win: project stability plus direct citizen profits. The Bujagali case transcends tax policy. It raises questions about foreign investment, local participation, and Uganda’s economic agreements. Parliament now decides whether to extend again or deliver a final fix.