KAMPALA- The National Water and Sewerage Corporation (NWSC) has revealed that the unpaid water arrears from government institutions have since risen to UGX100 billion, further worsening the corporation’s financial crisis, thus hindering the extension of water across the country.
The revelation was made by Silver Mugisha, Managing Director of NWSC, while appearing before Parliament’s Committee on Environment and Natural Resources, during the scrutiny of the Corporation’s 2025/26 ministerial policy statement.
He said that the that agencies owe NWSC a lot of money for water bills, which currently stands at UGX100Bn and the accumulation of water bills by Government agencies is mainly attributed to under-budgeting for water bills.
While responding to questions raised by the Committee on why the Corporation hasn’t intensified efforts towards use of prepaid water meters in order to ease debt collection, Mugisha attributed the slow progress on the high investments needs in prepaid system, yet this can easily be rendered useless if no credit is maintained on the prepaid meters.
He further explained that the prepaid meter water networks work on the principle that there must be credit, however, in some Government Ministries where these meters have been installed, the Corporation has had challenges related to Government agencies running out of credit and Ministry of Finance has severally advised the Corporation to reconnect, thus making the system useless and a waste of money yet a lot of money is invested the system.
Cue in…………..Mugisha on bills
National Water and Sewerage Corporation also defended its decision to change terms of employment for some staff to part time employment, saying the decision was intended to reduce employee costs and benefits that now command 42% of the Corporation’s budget.
Mugisha explained that the entity is currently experiencing challenges mainly attributed to non-payment of Government water bills arising from under budgeting amidst increasing costs of operation.
He added that the employee benefits costs are high at 42% of total budgeting costs and this is the level of employee costs compared to basic industrial practice of 35% meaning we are slightly higher.
He defended the Corporation’s decision goes against the provisions in the National Water and Sewerage Corporation Act that requires the Corporation to operate in a financial and commercial viability .
The corporation also denied allegations that these particular staff are being forced into part-time employment with Mugisha, saying that the NWSC Board of Directors approved this policy that is geared towards ensuring that the corporation remains afloat as a growing concern amidst the prevailing challenges to leverage more internal investment capital contribution.
Cue in………………Mugisha on measures
