KAMPALA: The National Water and Sewerage Corporation (NWSC) is grappling with a massive Shs355 billion in unpaid water bills, with Shs111.2 billion owed by Ministries, Departments, and Agencies (MDAs).
Some of these debts have remained outstanding for more than two years, posing a significant challenge to the state-run utility’s operations.
In a recent report, Auditor General Edward Akol revealed the extent of the crisis, highlighting government entities as some of the largest defaulters.
This growing debt has strained NWSC’s ability to maintain its infrastructure and provide reliable water and sewerage services to millions of Ugandans.
To address the issue, the Secretary to the Treasury pledged to clear verified outstanding bills in a phased manner.
A plan was drawn up to pay Shs43.1 billion, starting with Shs12.8 billion in the 2023/24 financial year, with the remaining amount to be settled over the next four years.
However, the government has failed to fulfill this commitment, leaving NWSC in a precarious financial position.
The prolonged non-payment has hindered the corporation’s capacity to maintain and expand its services, undermining its financial sustainability.
This situation reflects a larger systemic issue of delayed payments by government institutions, where MDAs often neglect their financial obligations.
For public utilities like NWSC, timely payments are critical to ensuring the delivery of essential services.
The delay in clearing these debts risks service disruptions and could erode public trust in the corporation’s ability to meet the water needs of Ugandans.
Urgent action is required to address this growing financial burden. Without swift government intervention to settle these outstanding bills, the challenges facing NWSC may deepen, affecting not only its operations but also its ability to expand access to water and sewerage services across the country.
