The Ministry of Finance has asked Parliament to approve the write-off of Shs2.2974 billion in non-tax revenue owed to the Government by Kilembe Mines Limited, relating to unpaid annual mineral rent accumulated between 2018 and 2024.
State Minister for Finance (Planning), Amos Lugoloobi, appeared before the Parliamentary Committee on Finance, Planning and Economic Development on Thursday alongside technical officials to present the request.
The outstanding debt comprises annual mineral rent arrears that have accumulated over six years. The request follows a recommendation by the Auditor General in the audit of the Ministry of Energy and Mineral Development for the financial year ended December 2024.
According to Lugoloobi, the Auditor General recommended that the outstanding annual mineral rent arrears of Shs2,297,400,000 be written off.
The Ministry of Finance subsequently received a request from the Ministry of Energy and Mineral Development seeking approval to abandon the claim against Kilembe Mines Limited.
Lugoloobi told the committee that the request is grounded in Section 33(1) of the Public Finance Management Act, Cap. 171, which requires the Finance Minister to obtain Parliament’s approval before abandoning or remitting a claim owed to Government or writing off a loss or deficiency involving public money or resources.
“The request to write off Kilembe Mines’ debt has therefore been presented to you, Honourable Chair and members of this committee, in accordance with the provisions of the Public Finance Management Act for your consideration,” Lugoloobi said.
The committee’s consideration will determine whether the Government can formally extinguish the outstanding claim.
The proposed write-off comes amid continued efforts by Government to strengthen the management and accountability of public revenues, including non-tax revenue collected from the mining and minerals sector.
Kilembe Mines, located in Kasese District in western Uganda, has historically been associated with copper mining and remains a significant part of the country’s mining heritage.
The Shs2.2974 billion request now places Parliament at the centre of the decision on whether the Government should abandon its claim for the accumulated mineral rent arrears.
