Summary:
- Parliament was informed that Uganda House had recently undergone refurbishment at a total cost of UGX 26.309 billion—UGX 24.439 billion allocated for project works and UGX 1.869 billion for consultancy and supervision.
KAMPALA: Parliament has called on the Government to pursue compensation from the Kenyan Government following the destruction of Uganda House in Nairobi during protests against Kenya’s Finance Bill in June 2024.
This recommendation is detailed in the Budget Committee’s report on the 2025/26 Budget Framework Paper, presented by Achia Remigio, Vice Chairperson of the Budget Committee, during last week’s plenary session.
“The Committee proposes that the Government of Uganda should actively seek compensation from the Government of Kenya for the destruction of Uganda House in Nairobi during the riots,” stated Remigio (Pian County).
Parliament was informed that Uganda House had recently undergone refurbishment at a total cost of UGX 26.309 billion—UGX 24.439 billion allocated for project works and UGX 1.869 billion for consultancy and supervision.
The refurbishment aimed to boost Uganda’s rental income from the property to UGX 4 billion annually upon full occupancy.
However, the building was extensively damaged by fire during demonstrations on June 25, 2024, just days before its scheduled official commissioning on June 28, 2024. Following the incident, a detailed damage assessment conducted by the project consultant estimated the full restoration cost at UGX 7.2 billion.
In the proposed FY2025/26 budget, Uganda’s High Commission in Nairobi has been allocated UGX 4.401 billion for the restoration of Uganda House, aimed at realizing the original objectives of the refurbishment. The restoration will occur in two phases, though a funding gap of UGX 949 million remains.
The first phase, focusing on the Ground and Second Floors, is set for February to June 2025, with an estimated cost of UGX 2 billion. This phase will be funded through savings from the Uganda House project expenses, totaling UGX 1.85 billion.
The second phase, covering the remaining floors, will begin in July 2025, supported by the UGX 4.401 billion budget allocation. However, an additional UGX 949 million is needed to fully complete the restoration.
Appearing before Parliament’s Foreign Affairs Committee in January 2025, the Ministry of Foreign Affairs reported that the Kenya Police had launched a forensic investigation into the fire, which remains ongoing.
The Ministry also disclosed ongoing discussions with Ambitious Construction Co. Ltd, the insurance firm contracted during the refurbishment. While the insurer has assessed the damage, the insurance claim’s outcome is still pending.
The Ministry further revealed that the Government of Uganda is engaged in negotiations with the Kenyan Government to explore compensation options for the damage incurred.
“The Committee observes that the Government’s efforts have yet to yield tangible results. Meanwhile, the continued loss of Non-Tax Revenue (NTR) from renting out the commercial building is economically detrimental. It is, therefore, prudent for the Government to expedite the restoration of Uganda House to resume revenue generation while simultaneously pursuing compensation from the insurers and the Government of Kenya,” the Budget Committee’s report noted.
Parliament has approved an additional allocation of UGX 949 million to the Uganda High Commission in Nairobi, supplementing the UGX 4.401 billion already provided in the FY2025/26 budget, to fully fund the restoration of Uganda House.
This situation mirrors challenges faced by Uganda’s Mission in Kinshasa, DRC, which was also destroyed during protests following the outbreak of conflict between the DRC Government and M23 rebels after their takeover of Goma Town in Eastern DRC.
