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Saturday, October 31, 2026

Uganda Africa

Uganda Signs US$54M Kabalega Airport Deal

By · October 31, 2026 · 5 min read
Flags of African countries flying in front of the old white terminal and control tower at Entebbe airport, Uganda
The old terminal and control tower at Entebbe, Uganda’s main airport, with flags of African states in front. File photo. (Photo: Rio Times library)
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UGANDA · AVIATION

Key Facts

  • The country Uganda is a landlocked East African country of about 46 million people, led by President Yoweri Museveni.
  • What happened On Friday 30 October 2026 Uganda signed a Shs232 billion (about US$54 million) Kabalega Airport terminal contract.
  • The builder SAMCO, an Egyptian construction company, has eight months to build a terminal for 1,000 peak passengers.
  • Why it matters Hoima airport serves Uganda’s oil region and will host fans for the 2027 Africa Cup of Nations.
  • The catch Eight months from signing ends close to the tournament’s 19 June 2027 start, leaving little time for testing.

Uganda signed a Shs232 billion (about US$54 million) contract on Friday 30 October 2026 for a new passenger terminal at Kabalega Airport. The airport sits in Hoima, the town closest to Uganda’s oil fields in the west of the country.

The deal matters to US readers because Kabalega Airport should serve oil firms, tourists and fans at the 2027 Africa Cup of Nations. SAMCO, an Egyptian construction firm, won the work and has eight months to deliver it.

What Was Signed in Kampala

The Ministry of Works and Transport signed the contract at its headquarters in Kampala, the capital, on Friday 30 October 2026. Works and Transport Minister Fred Byamukama said the price is Shs232 billion (about US$54 million).

Byamukama said rival bids were higher, including one near Shs285 billion (about US$66 million). He put the saving at more than Shs50 billion (about US$12 million), at about 4,289 shillings to the dollar on 31 October 2026.

Who Is Building It

SAMCO National Construction Company is an Egyptian contractor that builds large public buildings. Its vice chairman, Ibrahim Mabrouk, said at the signing that the company is ready to start work immediately and may finish early.

Egypt’s ambassador to Uganda, Sherif Mohamed Abdellattif Elgammal, praised the bidding process as open and based on merit. Olive Birungi Lumonya, acting head of the Uganda Civil Aviation Authority, the national aviation regulator, promised technical support.

Why Kabalega Airport Exists

Kabalega Airport lies in Hoima, in the Albertine region near Lake Albert, where Uganda is developing its first commercial oil. The minister has described it as key infrastructure for the oil and gas sector, at the head of the East African Crude Oil Pipeline (EACOP).

The first phase cost about Shs1.2 trillion (about US$280 million) and includes a 3.5-kilometre runway, taxiways, an aircraft apron and navigation systems. It has only a small terminal that handles roughly 100 passengers at a time.

Calm blue water of Lake Albert seen from green hills in Hoima district, western Uganda, under a large cloud
Lake Albert in Hoima district, western Uganda, the oil region that Kabalega airport serves. File photo. (Photo: Vaibhave nagori, CC BY-SA 4.0, via Wikimedia Commons)

A Race Against the Football Tournament

Uganda co-hosts the 2027 Africa Cup of Nations, the continent’s top football tournament, with Kenya and Tanzania. The Confederation of African Football, the sport’s governing body, set the opening for 19 June 2027, and Hoima hosted a Uganda match.

Kabalega Airport received its first passenger aircraft on Sunday 27 September 2026, carrying the Libyan and Ugandan national football teams. Byamukama said then that the first phase was nearly complete and that the President would commission the airport in January 2027.

What the New Terminal Will Handle

The new building is the second phase of the airport and is designed for up to 1,000 passengers at peak times. That is roughly ten times what the current small terminal can take.

Byamukama said he expects more than 350 passengers, especially tournament guests, to use the airport. He also said he refused several bribe offers from people who wanted the contract, and he warned the builder against interference.

What It Means for US Readers

US energy investors watch Hoima because Albertine crude is due to flow through the East African Crude Oil Pipeline to Tanzania. A terminal makes it easier to fly engineers and managers into the oil zone.

Travellers heading to the 2027 football tournament may be able to fly into western Uganda rather than driving from Entebbe. US citizens should still check State Department travel advisories before booking, because the opening date has slipped seven times.

What Is Not Known

It is not yet clear whether eight months is enough, because the deadline falls close to the 19 June 2027 tournament start. Testing of equipment and safety systems usually takes weeks after a building is complete.

The ministry has not published the full contract or a payment schedule, and it has not said which airlines will fly to Hoima. Uganda’s inflation rose to 5.8 percent in October on a weak shilling, which could raise building costs.

Frequently Asked Questions

How much does the Kabalega Airport terminal cost?

The contract is worth Shs232 billion (about US$54 million). Minister Fred Byamukama announced it at the signing in Kampala on Friday 30 October 2026.

Who is building the new terminal?

SAMCO National Construction Company, an Egyptian contractor, won the work. It has eight months to finish the building.

When will Kabalega Airport open for flights?

Officials target January 2027 for the airport’s commissioning. The larger terminal is due around late June 2027.

Why does Uganda need a second airport?

Kabalega serves Hoima and the western oil region, far from Entebbe. It also gives football fans and tourists a closer entry point.

How many passengers can the new terminal hold?

It is designed for up to 1,000 passengers at peak times. The current small terminal handles about 100.

Sources: Ministry of Works and Transport, Uganda (statements at the signing, 30 October 2026), 30 October 2026; Confederation of African Football (CAF), Africa Cup of Nations 2027 dates, May 2026; Uganda Bureau of Statistics, 2024 census, 2024.


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