The Auditor General has raised fresh concerns over cash management at Uganda Airlines after revealing that hundreds of millions of shillings collected at the airline’s Juba office were never banked, adding to a growing trail of financial weaknesses at the national carrier.
In the Auditor General’s Annual Report for the financial year ended June 30, 2025, Uganda National Airlines Company Limited (UNACL) is cited for failing to bank USD 103,491.70, equivalent to about Shs 380 million, collected at its Juba Country Office.
The unbanked funds are now under criminal and legal investigation, exposing the airline to potential financial loss.
The Auditor General notes that all revenue collected by government entities is required to be banked promptly and fully accounted for. Failure to do so not only breaches financial regulations but also creates opportunities for loss, fraud and abuse. In the case of Uganda Airlines, the Juba incident stands out as a clear lapse in basic cash control.
The revelation comes at a time when the national carrier is already under intense scrutiny over its financial health. According to the same report, Uganda Airlines recorded a net loss of Shs 230.8 billion in the 2024/25 financial year, only a slight improvement from the Shs 231.6 billion loss posted the previous year.
Despite a reported increase in revenue, the airline remains firmly in the red.
Government has so far injected Shs 1.984 trillion into Uganda Airlines since its revival. However, only Shs 200 million of this amount has been recognised as share capital, with the rest recorded as share application funds and capitalisation awaiting conversion. The Auditor General highlights this as evidence of the airline’s continued dependence on state support to sustain operations.
The report also points to rising financial pressure, with trade and other payables increasing to Shs 235.7 billion by the end of June 2025, up from Shs 171.7 billion the previous year. This sharp rise in unpaid obligations signals growing strain on the airline’s cash flow.
Fuel procurement and expenditure further compound the airline’s problems. The Auditor General reports that Uganda Airlines incurred supplier penalty charges amounting to USD 1.78 million without adequate supporting documentation. In addition, the airline uplifted and paid for aviation fuel worth USD 17.39 million without a valid fuel supply contract, of which USD 9.29 million relates to the 2024/25 financial year. Such practices expose the airline to disputes, inflated costs and weak value for money.
Beyond finances, the Auditor General also questions the airline’s operational performance. Out of 29 planned outputs covering 34 activities, only one output was fully implemented during the year. Most activities were either partially implemented or not implemented at all, raising concerns about planning, execution and accountability.
The unbanked cash at the Juba office therefore fits into a broader pattern of weak controls and oversight that continues to dog Uganda Airlines. It also comes amid wider turbulence at the carrier, including leadership changes, a special audit that exposed massive revenue and fuel mismanagement, and recent operational disruptions that left passengers stranded abroad.
As Parliament prepares to scrutinise the Auditor General’s findings, the spotlight is likely to intensify on how a taxpayer-funded airline could allow Shs 380 million in cash to go unbanked, even as it records losses running into hundreds of billions of shillings.
For critics, the message is becoming harder to ignore: Uganda Airlines’ problems are no longer confined to the balance sheet. From cash handling at foreign stations to fuel contracts and unpaid bills, the Auditor General’s report suggests a carrier still struggling to put its financial house in order.
