Uganda’s plan to inject an additional US$434 million (about Shs1.74 trillion) into pharmaceutical manufacturer Dei BioPharma has come under parliamentary scrutiny, with legislators demanding proof of government shareholding, an independent valuation of the company and an audit of the Shs723.4 billion already committed to the project.
The concerns emerged during a plenary debate on October 7, 2026, as lawmakers questioned whether the Government should commit more public funds to the pharmaceutical manufacturing complex before outstanding accountability issues had been resolved.
Deputy Speaker Thomas Tayebwa challenged a recommendation by Parliament’s Presidential Affairs Committee to secure additional financing without first addressing gaps in the documentation and accountability process.
“You’re saying pay when you’re bypassing the processes,” Tayebwa told Parliament.
Leader of the Opposition Joel Ssenyonyi also questioned how the Government could justify injecting more money into a privately operated company when documentary evidence of its reported 9.4 per cent shareholding had not been presented during the committee’s assessment.
“You’re saying there is no proof of government shareholding, but you’re saying government should inject a lot more money. This is extremely confusing,” Ssenyonyi said.
According to a report presented by Presidential Affairs Committee chairperson Martin Mapenduzi, the Government has committed Shs723.4 billion to Dei BioPharma through three principal allocations.
These include Shs70 billion in the 2023/2024 financial year, Shs75 billion in December 2023 and Shs578.4 billion through a supplementary budget in the 2024/2025 financial year.
The committee recommended an additional US$434 million to complete and operationalise the pharmaceutical manufacturing facility. However, the proposed funding has raised questions about the extent of government ownership, the value of the company and what the money already spent has achieved.
Former Minister of Science, Technology and Innovation Dr Monica Musenero told legislators that she had received copies of the company’s share certificates shortly before entering the House and would print and present them to Parliament.
The documents are expected to help establish the Government’s reported 9.4 per cent stake, although lawmakers insist that share certificates alone would not resolve all the outstanding accountability concerns.
Ssenyonyi called for a value-for-money audit to establish how the Shs723.4 billion already committed had been used and whether the Government had received an appropriate ownership stake in return.
“How do you know the stake you’re buying?” he asked, arguing that Parliament needed an independent assessment before considering additional financing.
Budadiri County East MP Julius Nakiyi also questioned the reported valuation of the company, using the Government’s investment and its reported shareholding to illustrate the need for an independent assessment.
Based on a Shs723.4 billion investment representing 9.4 per cent ownership, the implied total equity valuation would be approximately Shs7.7 trillion, assuming the entire amount corresponds to that stake.
However, this is a mathematical inference rather than an independently established valuation. The actual value would depend on the investment terms, the nature of the Government’s contributions and the company’s financial position.
Lawmakers argued that an independent valuation would help establish whether the Government had received a fair stake and whether the proposed additional financing was justified.
The concerns also echo findings in Auditor General Edward Akol’s report for the financial year ended June 30, 2024.
The report highlighted gaps in documentation, including the absence of a valuation report, audited financial statements, a shareholder agreement and share certificates at the time of the audit.
The missing documents have become central to Parliament’s examination of the investment, particularly as the Government considers committing more money to the project.
The debate has therefore shifted beyond completing the factory to whether the state’s financial interests are adequately documented and protected.
Dei BioPharma operates a 150-acre pharmaceutical manufacturing complex in Matugga, Wakiso District, intended to manufacture generic medicines, vaccines, injectables, oncology medicines and medical devices.
According to the committee report, the company produced and distributed six generic medicines during the 2024/2025 financial year, while several specialised production lines were still undergoing installation, validation or commissioning.
The Government and supporters of the project have argued that completing the facility could strengthen Uganda’s pharmaceutical manufacturing capacity, reduce dependence on imported medicines, create jobs and support exports.
At full capacity, the facility is expected to require substantial utilities, including up to 100 megawatts of electricity and between seven million and 10 million litres of water daily.
However, the scale of the proposed investment has prompted legislators to question whether the expected economic and industrial benefits justify further public expenditure before the outstanding financial issues are resolved.
The debate also raised broader concerns about how government support is allocated to private enterprises.
Public Accounts Committee chairperson Patrick Oshabe Nsamba called for an open and competitive innovation fund, arguing that public financing should follow transparent criteria rather than favouring selected companies.
Lawmakers questioned whether repeatedly directing substantial public funds towards particular private businesses could disadvantage other enterprises seeking government support.
The discussion extended to a proposed US$250 million investment in Inspire Africa Coffee, with Ssenyonyi questioning why Parliament was being asked to consider additional capital before the contractual and financing framework had been fully presented.
Combined, the two proposals amount to US$684 million, approximately Shs2.74 trillion, based on the rounded exchange-rate assumptions cited in the proposals.
The figure represents proposed financing and does not mean that the additional funds have been approved or disbursed.
Parliament now faces the challenge of balancing the risks of leaving a major industrial investment underutilised against the need to protect public resources.
Legislators are seeking verifiable ownership documents, an independent company valuation, a review of previous expenditure and a clear completion plan with measurable targets before further commitments are made.
The debate also places pressure on the Government to demonstrate how the additional funding would translate into increased production, completed manufacturing lines and tangible benefits for the economy.
For Uganda, a fully operational pharmaceutical plant could contribute to domestic drug production and reduce reliance on imported medicines. But lawmakers are insisting that these ambitions must be supported by proper documentation, transparent financing arrangements and evidence that public money is being used effectively.
The central question remains whether the Government can demonstrate that its existing investment in Dei BioPharma represents value for taxpayers before committing another Shs1.74 trillion to the project.
