KAMPALA, October 12, 2026 — Parliament has warned Dei BioPharma against producing generic medicines that can already be manufactured by Ugandan companies, saying this could give the government-backed firm an unfair advantage over businesses operating without similar taxpayer support.
The warning came during Wednesday’s plenary sitting chaired by Deputy Speaker Thomas Tayebwa, as Members of Parliament [MPs] debated a report on the government’s investment in Dei BioPharma, owned by Dr Mathias Magoola.
The report also examined other government-supported projects, including the Engineering Development and Innovation Centre [EDIC] in Kiruhura district, the Nyakihanga Fruit Factory and Africa Coffee Park in Ntungamo district, and the Banana Industrial Research and Development Centre in Bushenyi district.
Tayebwa said he had received complaints from manufacturers who had borrowed money to establish their businesses, only to find themselves competing with a company receiving substantial government financing.
“They are saying we have borrowed money to compete with a company which government has given money. Support them to manufacture what is not manufactured locally, otherwise you are telling the other business people to park and go,” Tayebwa said.
He said Dei BioPharma should instead be supported to develop new and strategic pharmaceutical products rather than entering markets already served by local manufacturers.
“Let the minister take keen interest in this so that Magoola does not encroach on people who have struggled with loans to build their businesses; let him remain on things which are new, which the President recommended. We did not fund him to, for instance, produce paracetamol,” Tayebwa said.
MPs also questioned the value for money of the investment, the financial structure of the project and the extent to which the government’s contribution was reflected in its shareholding.
“These projects are good, but when you look at the value for money versus what government is spending, it is not worth it. We are spending endlessly as if there was no business proposal on how much the projects will take,” said the Buzaaya County MP Martin Muzaale, Buzaaya.
Muzaale called for audited financial statements to establish the basis for the government’s expenditure and its shareholding in the company.
“We need the audited books and establish why we are spending so much when we have only a few shares. The investor may not have invested more than government, yet he has the biggest share,” he said.
The Leader of the Opposition, Joel Ssenyonyi, said the committee’s report was contradictory because it questioned evidence of the government’s ownership and investment while, at the same time, recommending additional funding.
He accused the government of failing to conduct adequate due diligence before entering into such partnerships.
“When government was seeking approval for Shs 723 billion for Dei BioPharma, saying they wanted to buy shares, I asked if they could bring a government valuer’s report. Government told us that we had not valued this company and that we would do so when you give us the money,” Ssenyonyi said.
The Opposition Chief Whip, Paul Mwiru, proposed that the government should, in future, scrutinise companies’ audited financial statements, business plans and valuations, and involve independent professionals in determining the value of such projects.
The Kassanda North MP, Patrick Nsamba, warned that government financing of private companies could promote unfair competition and undermine the private sector.
“We have created a situation where some companies entirely depend on the Consolidated Fund to run businesses, which kills all the rules of competition. When one company is producing pharmaceutical products and all the funding is coming from taxpayers’ money, they cannot compete at the same level with those using their own money,” Nsamba said.
The Minister for Energy and Minerals Development, Monica Musenero, who formerly oversaw the project, said she had documents confirming the government’s shares in the company.
She pledged to engage the Attorney General to provide Parliament with the valuation reports and other relevant documents.
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