Published on 04/02/2025
Parliament has criticized Uganda’s high spending on rent for diplomatic missions, calling for urgent action to build government-owned premises. Lawmakers argue that constructing offices would save costs and enhance long-term efficiency.
A report on the 2025/26 Budget Framework Paper, passed last week, reveals that Uganda spends UGX 44.4 billion annually on rent for mission premises, official residences, and staff quarters. The Foreign Affairs Committee warned that these costs are unsustainable.
“Government continues to incur substantial annual costs on rent. For example, the Uganda High Commission in Kigali spends $8,000 (UGX 29.6 million) monthly on the Official Residence, amounting to UGX 355.2 million annually,” the report states. The cost is expected to rise to $10,000 per month in 2025. Similarly, the Uganda High Commission in New Delhi spends UGX 44.2 million monthly (UGX 530.6 million annually) on chancery rent alone.
Although the committee acknowledged ongoing efforts to build chancery buildings and official residences in Ottawa, Abuja, Mogadishu, Mombasa, Guangzhou and Dodoma, MPs called for additional resources to acquire mission properties, particularly in Kigali and New Delhi, where rent costs are rising.
The Ministry of Foreign Affairs has proposed purchasing an Official Residence for the Kigali mission at UGX 5.5 billion. Meanwhile, the New Delhi mission requires UGX 9 billion to construct a chancery on land allocated by the Indian government to prevent its reassignment.
Parliament recommended that UGX 5.58 billion be allocated in the 2025/26 financial year for the Kigali residence purchase and UGX 9 billion for the New Delhi chancery construction.
Kinshasa Mission’s Tax Obligations
Parliament also criticized the government for failing to allocate UGX 195 million for property and rental tax payments for Uganda’s Mission in Kinshasa. Uganda owns a commercial building in Kinshasa, generating $165,000 (UGX 600 million) annually in non-tax revenue. However, the mission requires UGX 195 million for property and rental taxes in 2025/26, which was omitted from the budget.
Authorities in the Democratic Republic of Congo recently threatened to seize the property due to unpaid tax arrears of $443,583 (UGX 1.62 billion). Although these taxes were cleared in FY 2024/25, the incident caused diplomatic embarrassment. MPs called on the Ministry of Finance to allocate UGX 195 million in FY 2025/26 to prevent future arrears, fines, and penalties.
Uganda’s Mission in Cairo
The Ministry of Foreign Affairs informed Parliament that Egypt is relocating all government agencies and diplomatic missions to the New Administrative Capital (NAC), requiring Uganda’s mission in Cairo to move by 2028. The current location has become impractical, as a round trip to NAC covers 130 kilometers, delaying document submissions.
Land in NAC costs $600 per square meter, and Uganda’s mission requires a minimum of one acre, estimated at UGX 8.784 billion. Construction of a new chancery, official residence, and staff apartments is projected to cost UGX 28.216 billion, bringing the total project cost to UGX 37 billion.
MPs recommended a phased budget allocation, starting with UGX 8.784 billion in FY 2025/26 for land acquisition, to ensure timely relocation and compliance with Egypt’s deadline.
