The Auditor General shows that Kiira's returns are underwhelming, with a target of Shs197b but realising only Shs2.3b, just 1.2 percent of the target
At the second National E-Mobility Expo, young technicians in overalls were putting the final touches on a passenger bus body.
The vehicle, designed, constructed, and assembled at the Kiira Motors Corporation (KMC) plant in Jinja, rolled out on September 18, 2025, marking the company's 15th unit at the plant.
Inside the sprawling workshop, tucked between sugarcane fields in Kagogwa Village, Kakira Town Council in Jinja, it was a hive of activity.
Some technicians fitted metallic sheets onto frames; others fastened them with clips and screws.
The factory, officially opened last year, has so far produced 54 vehicles since Kiira was incorporated in 2018, 37 electric and 17 diesel, according to Kiira Motors Corporation public affairs manager Shaban Senyange.
For a plant that has attracted $120m (Shs415.2b) in government equity funding, 54 units in seven years is a drop in the ocean for a company that seeks to anchor the agenda of a country seeking to lead East Africa's e-mobility drive.
Lofty targets, harsh reality
Kiira has promised 2,500 units in the midterm, scaling to 5,000 and eventually 10,000 annually by 2030.
But the promise remains stuck in neutral, hampered primarily by financing gaps.
Joseph Muvawala, Executive Director of the National Planning Authority, thinks government must step in with at least $140m (Shs484.4b) to move the project into commercial operations.
At current capacity, he argues, Kiira must raise production tenfold, at least 500 units annually, to achieve efficiency.
"If Kiira does not give us 500 units, we are finished. Whoever is looking for money must know this," Muvawala says. At factory prices, with Kayoola EVS buses (35-90 seaters) priced at Shs200.7m to Shs311.4m, such volumes could bring in between Shs100.3b and Shs155.7b a year, stabilising Kiira's revenues.
The current reality paints a picture of a company way below its targets. The Auditor General's report for June 2024 shows Kiira targeted Shs197b in revenue but managed only Shs2.3b, just 1.2 percent of its goal.
This makes it difficult to operate an efficient cash flow without depending on government remittances.
Deeper challenges
Government has sweetened the environment with tax exemptions, a 10-year income tax holiday, relief on construction materials, and duty-free importation of EV inputs, but the environment remains tough.
On the whole, this has made the cost of owning and operating Kiira-produced electric buses more competitive.
However, the challenges go beyond manufacturing and cost. Auditor General Edward Akol, in a December 2024 report, flagged governance gaps.
Kiira is operating without a fully constituted board. Of the 11 members appointed in 2021, only two remain, the executive chairperson and the chief executive officer, leaving a critical oversight vacuum.
Henry Muguzi of the Alliance for Finance Monitoring says such challenges are common in state-run enterprises.
They actually cast doubt on Kiira's ability to meet export commitments, including 3,000 buses for Nigeria and 100 for Tanzania, both of which have previously issued letters of intent.
What is at stake
The stakes are high. Electric vehicles offer over 78 percent energy savings and 46 percent lower maintenance costs compared to fuel-powered cars.
For Uganda, the macroeconomic benefits could be transformative: the country spends Shs7 trillion ($2b) annually on energy imports and Shs2.5 trillion ($730m) on vehicle imports.
If Kiira can overcome its governance and financing bottlenecks, its buses could power not just e-mobility but also economic independence.
If not, the dream of anchoring Uganda's e-mobility revolution risks stalling before it leaves the garage.