Uganda Broadcasting Corporation (UBC) reported a loss after tax of UGX 7.5 billion in the 2024/25 financial year, a sharp deterioration from the UGX 1.432 billion loss recorded the previous year.
According to the Auditor General’s Annual Report for the year ended 31 December 2025, the national broadcaster is facing mounting financial pressure driven by weak liquidity, declining revenues, ageing infrastructure, and persistent funding gaps that continue to undermine service delivery.
Revenue decline and weakening margins
The report notes that UBC’s revenue performance declined during the year, partly due to a strategic decision to expand radio services into low-income and non-commercial areas to strengthen public communication and disseminate government information.
While aligned with UBC’s public service mandate, the expansion generated limited commercial returns, contributing to the broadcaster’s worsening financial position.
UBC’s operating performance deteriorated sharply, with operating margin falling to (24%) in 2024/25 financial year from (3%) the previous year, an unfavourable movement of 21 percentage points.
UBC attributed the decline to reduced local revenue inflows and insufficient, unpredictable government funding that has not kept pace with the Corporation’s nationwide coverage obligations.
Rising liabilities and weak liquidity
The Auditor General highlighted growing liabilities, with outstanding payables totalling to UGX 63.37 billion, comprising PAYE, NSSF contributions, and trade payables.
These expose UBC to potential legal action from suppliers, as well as penalties and fines from URA and NSSF for delayed remittances.
At the same time, working capital remains constrained by high receivables. UBC reported receivables of UGX 31.02 billion, a modest 3.2% decline from the previous year.
Despite the reduction, the Auditor General noted that the large uncollected balance continues to hinder implementation of work plans.
Liquidity remains weak, with the current ratio declining to 0.54 in the 2024/25 financial year from 0.68 in the 2023/24 financial year, reflecting limited capacity to meet short-term obligations.
Funding gaps constrain operations
Significant funding shortfalls further constrained performance. Of the approved strategic plan funding totalling UGX 895.88 billion, UBC realised only UGX 83.73 billion, leaving UGX 817.9 billion unrealised and severely limiting planned interventions and modernisation efforts.
During the year, the board approved a budget of UGX 20.703 billion, including wage and non-wage recurrent expenditure. Actual funding amounted to UGX 18.789 billion, creating a shortfall of UGX 1.914 billion.
She Chose Humanity: How Miriam Opwonya Laker-Oketta Is Redefining Leadership through Dignity and CompassionGovernance and asset management weaknesses
Beyond finances, the Auditor General cited governance and service delivery gaps, noting that UBC lacks an approved client service charter, limiting transparency and accountability in communicating service standards to the public.
Asset management weaknesses were also noted. UBC reported property, plant, and equipment valued at UGX 321.220 billion, including assets originally acquired at UGX 35.95 billion that are fully depreciated but still in use.
The Auditor General recommended revaluation to reflect their true economic value.
In addition, UBC owns 32 parcels of land that are neither valued nor titled, exposing the Corporation to accountability and ownership risks.
Declining asset performance
UBC’s return on assets declined to (2.32%) from (0.45%), indicating reduced efficiency in generating returns from its assets.
UBC attributed this to reliance on outdated broadcasting equipment that frequently breaks down and requires replacement.
UBC’s response and outlook
UBC acknowledged the challenges and outlined corrective measures such as establishing a committee to review the receivables portfolio, improving working capital management, and implementing reforms under the UBC Strategic Plan 2025–2030.
UBC also noted that significant investment in modern broadcasting technology is required to improve operational efficiency, competitiveness, and asset performance.
An institution under strain
UBC plays a vital role in public communication, education, and the dissemination of government programmes.
However, the Auditor General’s findings depict an institution under increasing financial strain, marked by rising losses, weak liquidity, mounting liabilities, ageing infrastructure, and persistent funding gaps.
The report underscores the urgent need for financial and governance reforms, stronger revenue mobilisation, improved asset management, and more predictable funding if UBC is to stabilise and sustainably fulfil its mandate in an increasingly competitive media environment.
