Uganda Airlines, the country’s flagship carrier and one of the government’s most ambitious public investments in recent years, has been placed under formal investigation by the State House Anti-Corruption Unit (SHACU), in collaboration with the Uganda Police Criminal Investigations Directorate (CID).
The investigation was triggered by an official letter dated January 7, 2026, authored by Fred Lumala, the CID’s Economic Fraud and Anti-Corruption Department and addressed to the airline’s Chief Executive Officer.
The document, referenced CID/ACU/395/25, outlines concerns regarding financial management during the 2024/2025 fiscal year.
The letter confirms that investigators are examining financial transactions involving Uganda Airlines officials.
Investigators have demanded certified copies of an extensive range of internal records. These include the airline’s approved National Airline Business and Implementation Plan, the 2024/2025 budget and corresponding internal audit reports, and Contract Committee minutes authorizing the purchase of Boeing aircraft.
The airline has also been asked to provide procurement files for major suppliers such as Mixjet Flight support services, Associated Energy Group, Nyanzi Tours and Travel, and Aircraft leasing services (ALS) Limited.
The CID also demands that the airline provides procurement records relating to the construction of its offices in Entebbe, bank statements, cash receipts, ticketing records, expenditure and supplier transactions for fuel for the FY 2024/2025.
More to the CID request includes a list of companies which supported the launch of the Uganda Airlines-London route.
The breadth of these requests indicates a systemic investigation aimed at uncovering patterns of irregular procurement, overpricing, conflicts of interest, or accounting manipulation. Aircraft acquisitions and international route financing, representing some of the airline’s largest financial commitments, are under particular scrutiny.
Copies of the correspondence have also been sent to the Director of CID and the Head of State House Anti-Corruption, signaling the seriousness of the inquiry.
Uganda Airlines, revived with heavy political and taxpayer support, was intended as a symbol of national resurgence.
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A Bill Like No Other: Sovereignty Protection Push Raises Economic, Legal, and Political QuestionsIts expansion into long-haul routes, including London, was seen as a statement of Uganda’s growing aviation ambitions. Yet critics have long questioned whether rapid growth was matched by robust financial controls.
Veteran professional pilot Captain Mike Mukula offered his perspective on the airline’s current challenges, posting on social media that Uganda Airlines is “facing a difficult but not hopeless moment.”
He noted that frequent flight disruptions, a small and overstretched fleet, rising maintenance costs, financial losses, and growing public frustration over customer service remain major hurdles.
In the short term, he suggested stabilising operations by leasing additional aircraft, improving maintenance planning, strengthening customer communication, and enforcing strict financial and governance controls.
In the long term, Mukula argued, the airline must pursue a sustainable business model with gradual fleet expansion, strategic partnerships, a focus on profitable routes, and positioning Entebbe as a regional hub.
With disciplined management and transparency, he concluded, Uganda Airlines can transition from survival mode to a credible national carrier supporting tourism, trade, and global connectivity.
Uganda Airlines Corporate Affairs and Public Relations Manager, Shakila Rahim, told CEO East Africa Magazine that she would first consult the airline’s top management on the appropriate next steps, noting that she had been out of the office when the publication initially sought comment.
She added that the airline is expected to comply fully with the CID’s request and allow the investigation to proceed in accordance with the law.
This is a developing story…
