Parliament has approved the waiver of Shs4.46 billion in accumulated tax and non-tax arrears owed by K-Roma Limited and Kilembe Mines Limited (KML), granting the two entities relief from outstanding liabilities.
The two motions were passed on Wednesday, November 11, 2026, during a sitting of the House chaired by Speaker Jacob Marksons Oboth.
The waiver for K-Roma Limited, the manufacturer of Bella Wine, covers Shs1.86 billion in accumulated tax arrears, comprising Shs784.4 million in principal tax, Shs300.6 million in penalties and Shs779.3 million in interest.
Local Excise Duty accounted for the largest share of the arrears at Shs1.39 billion, followed by Value Added Tax (VAT) at Shs409.4 million and Income Tax at Shs65.4 million.
Presenting the report of the Committee on Finance, Hon. Patrick Ocan attributed the company’s financial difficulties to the effects of the COVID-19 pandemic and increasing competition from informal wine manufacturers.
“The COVID-19 pandemic had an adverse effect on the financial position of the company. There is also increasing competition from informal winemakers, yet K-Roma operates formally,” Ocan said.
However, the committee also faulted the company for poor inventory management and borrowing decisions, noting that its stock continued to accumulate even as sales declined by 49 per cent between 2021 and 2023.
In a separate motion, Parliament approved the write-off of Shs2.6 billion in Non-Tax Revenue owed by Kilembe Mines Limited in outstanding annual mineral rent.
Kilembe Mines, which is 99.06 per cent government-owned, has been under care and maintenance since copper production was halted in 1982.
Following the termination of a concession agreement with M/s Tibet Hima Limited in 2017, the mining licence (ML 2151) reverted to Kilembe Mines, resulting in the accumulation of mineral rent arrears between 2018 and 2025.
The committee attributed the company’s failure to meet its obligations to chronic underfunding by government. It noted that during the 2022/2023 financial year, government released only 28 per cent of KML’s approved budget, which was insufficient to cover more than staff salaries and directors’ expenses.
Kigorobya County MP, Hon. Gerald Kasigwa, said clearing the outstanding debt would pave the way for the winding-up process and completion of the handover of the mines to a new joint-venture consortium comprising Sarrai Group, Uganda National Mining Company and Nile Fiberboard.
However, the Leader of the Opposition, Hon. Joel Ssenyonyi, raised concerns over both waivers, questioning their legal basis and warning against what he described as discriminatory treatment that could discourage voluntary tax compliance.
On Kilembe Mines, Ssenyonyi faulted government for initiating the waiver process before obtaining Parliament’s approval, as required under Section 33(1) of the Public Finance Management Act (PFMA).
“The committee report is asking us to do a reverse to what the law says, that Parliament must approve before the tax claim is abandoned,” Ssenyonyi said.
He revealed that an inter-ministerial negotiation committee had met in January 2025 and resolved to write off the arrears, arguing that Parliament was now being asked to approve a decision that had effectively already been taken.
Regarding K-Roma, Ssenyonyi described the waiver as an “untidy” arrangement, arguing that the company’s outstanding tax liabilities were nearly twice the total taxes it had paid over its 16-year lifespan, amounting to Shs1.07 billion.
Defending the waivers, the Minister for Defence and Veteran Affairs, Hon. Kiryowa Kiwanuka, said the Uganda Revenue Authority (URA) had exhausted the necessary efforts to recover the outstanding taxes without success.
He argued that pursuing the companies further would only expose government to additional costs without guaranteeing recovery of the arrears.
In his remarks, Speaker Oboth urged the Ministry of Finance to sensitise the business community about the availability of tax and non-tax waiver provisions, noting that some struggling businesses could be unaware of the relief mechanisms available to them.
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