Ugandan government has approved 422.26billion ($113 million USD approximately) in borrowing to fund the national carrier Uganda Airlines for the acquisition of 10 new planes, aimed at expanding long haul routes amid current fleet shortages causing route disruptions.
The latest funding, mentioned in the Ministry of Finance’s February 2026 economy report, follows parliamentary approval in December 2025 and addresses operational vulnerabilities, including temporary reliance on leased Boeing Dreamliners from Ethiopian Airlines.
The funding part of a supplementary request of shs.1.696trillion approved last year is earmarked for the acquisition of 10 new aircraft aimed at strengthening the airlines capacity and route network.
In the recent months, the Uganda Airlines has faced fleet constraints that have effected its long haul operations which includes the suspension of some international routes.
The airline has also been operating with a limited number of aircraft making it vulnerable to disruptions caused by maintenance schedules and technical issues.
The funds were raised through borrowing and are reflected in the Ministry of Finance’s February Performance of the Economy report. The report shows that government recorded net borrowing of Shs1.22 trillion in February, higher than the planned Shs985.85 billion.
As per the ministry, the increase came from higher spending, including payments towards Uganda Airlines’ aircraft purchase and rising interest costs.
The airline’s plans to expand routes to Europe, Asia and the Middle East have taken a hit due to the limited fleet that reduces flexibility and increases the risk of disruptions when aircraft develop faults.
This addition of 10 new aircraft’s is expected to improve route reliability, and enable the airline to scale up passenger and cargo operations.
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