Uganda: Government (Gov’t) seeks Shs2.6 billion waiver as Kilembe Mines winds up

The Ministry of Energy and Mineral Development is seeking a Shs2.6bn tax arrears waiver for Kilembe Mines Limited as the government-owned company winds up to pave way for a new mining company. The amount accrued from the unpaid annual mineral rents by Kilembe Mines Limited when they held the mining licence, the State Minister for Minerals, Hon. Sidronius Okaasai, told the Committee on Finance, Planning and Economic Development on Wednesday, 12 August 2026. Section 189 of the Mining and Minerals Act, Cap. 159 requires a mining company to pay annual mineral rents to government, which shall be payable before the grant of a mineral right, and thereafter annually on the anniversary of the grant until the termination of the mineral right concerned. The non-payment of annual mineral rent fees was flagged by the Auditor General for the year ended December 2024, who advised the accounting officer to explore the possibility of writing off Kilembe Mines’ receivable. “The exploration licenses expired in 2022; however, the arrears of the related annual mineral rent remain an obligation of Kilembe Mines Limited. We request the committee to allow us to write off this arrear as we process the tran