Kilembe Mines, K-Roma granted tax waivers worth Shs 4.4bln
KAMPALA, November 12, 2026 — Parliament has approved the waiver of a Shs 4.46 billion in accumulated tax and non-tax arrears owed by K-Roma Limited and Kilembe Mines Limited [KML].
The two motions for waiver were passed on Wednesday, at a sitting of the House chaired by Speaker Jacob Marksons Oboth.
The waiver for K-Roma Ltd, the manufacturers of Bella Wine comprises Shs 784.4 million in principal tax, Shs 300.6mln in penalties and Shs 779.3mln in interest. Local excise duty accounted for 74.5 percent of the arrears at Shs 1.39bln, value added tax of Shs 409.4mln and income tax amounting to Shs 65.4mln.
According to Patrick Ocan who presented the report of parliament’s Committee on Finance, the financial challenges were attributed to the effects of the COVID-19 pandemic and unfair competition.
“The COVID-19 pandemic had an adverse effect on the financial position of the company. There is also increasing competition from informal winemakers yet K-ROMA operates formally,” Ocan said.
The committee in its scrutiny faulted K-Roma for poor inventory and borrowing decisions noting that stock continued to pile up even as sales plunged by 49 percent between 2021 and 2023.
The House also approved a write-off of Shs 2.6bln in non-tax revenue owed by Kilembe Mines Limited in annual mineral rent.
The company which is 99.06 percent government-owned has been under care and maintenance since copper production was halted in 1982.
Following the termination of a concession with M/s Tibet Hima Ltd in 2017, the mining licence [ML 2151] reverted to Kilembe Mines which subsequently, accumulated the rent arrears between 2018 and 2025.
The legislators attributed the default to chronic state underfunding noting that, in the 2022/2023 financial year, government released only 28 percent of KML’s approved budget. This they reported, covered only staff wages and directors’ expenses.
Kigorobya County Member of Parliament, Gerald Kasigwa said clearing the debt paves way for winding up and completing the handover of the mines to a new joint-venture consortium comprising Sarrai Group, Uganda National Mining Company and Nile Fiberboard.
The Leader of the Opposition, Joel Ssenyonyi weighed in on the two waivers, citing legal interpretation and discriminatory practices that will discourage voluntary contribution.
On Kilembe Mines, Ssenyonyi faulted government for approving the waiver before Parliament as required in Section 33[1] of the Public Finance Management Act, 2015.
“The committee report is asking us to do a reverse to what the law says, that Parliament must approve before the tax claim is abandoned,” Ssenyonyi said.
He pointed out that an inter-ministerial negotiation committee sat in January 2025 to write off the arrears, a move he said was tantamount to asking Parliament to approve a request that was already acted upon.
On K-Roma, Ssenyonyi said it was an ‘untidy’ position to waive arrears that are double the amount of tax the entity has paid in its lifespan cognisant that for 16 years, it paid taxes worth Shs 1.07bln.
However, the Minister for Defence and Veteran Affairs, Kiryowa Kiwanuka argued that the Uganda Revenue Authority had done all that is necessary to collect the tax but failed, and that pushing hard on the entities would cause the government to incur even more costs.
Oboth called on the Ministry of Finance to sensitise the business community on eligibility for waivers in a bid to offer relief to those who may be struggling but are unaware of the provision.
https://thecooperator.news/govt-begins-journey-to-revamp-kilembe-mines/
Buy your copy of thecooperator magazine from one of our country-wide vending points or an e-copy on emag.thecooperator.news
