Auditor General Warns Karuma Hydro Power Plant May Struggle with UGX 5.3 Trillion Loan
The Auditor General has raised concerns that the Karuma Hydro Power Plant may struggle to repay its UGX 5.3 trillion loan from EXIM Bank of China, as it generated only UGX 148 billion in the 2024/25 financial year—46% of the projected UGX 316 billion. This revenue shortfall is attributed to low electricity demand, stemming from the government's emphasis on low-cost power generation.
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The Auditor General has expressed concerns that the Karuma Hydro Power Plant may have difficulty servicing its 5.3 trillion shilling loan from EXIM Bank of China. The audit report indicates that the plant generated 148 billion shillings in the 2024/25 financial year, which is only 46% of the anticipated 316 billion shillings. This shortfall in revenue is linked to low electricity demand due to the government's focus on low-cost power-generating plants.
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