Govt Seeks Shs2.6bn Tax Waiver for Kilembe Mines

14 August 2026, 1:03 am

PARLIAMENT – The Ministry of Energy and Mineral Development is seeking a Shs2.6 billion tax arrears waiver for Kilembe Mines Limited as the government-owned company winds up operations to pave way for a new mining company.

Appearing before the Committee on Finance, Planning and Economic Development on this week, the State Minister for Minerals, Hon. Sidronius Okaasai said the amount accrued from unpaid annual mineral rents by Kilembe Mines Limited when it held the mining licence.

According to the Minister, the arrears were charged in accordance with Section 189 of the Mining and Minerals Act, Cap. 159.

The waiver request comes after government in 2025 signed a new mineral production sharing agreement with a joint company comprising:
Sarrai Group Ltd
Nile Fibreboard Ltd
Uganda National Mining Company Ltd

The consortium has been contracted for the exploration, development, production and processing of minerals at Kilembe Mines in Kasese District.

Minister Okaasai told the committee that clearing the arrears is necessary to finalize the winding up of the old Kilembe Mines Limited and allow the new investors to take over operations without legal and financial encumbrances.

The Committee is expected to scrutinize the request and make a recommendation to Parliament.