1. Home
  2. Stories
  3. Industry
  4. Manufacturing

Uganda Clays reports another UGX5 bn loss

Peter 9th Apr, 2025 Industry Pedson Mumbere
Uganda Clays reports another UGX5 bn loss

Uganda Clays Board Chairman Martin Kasekende. FILE PHOTO


Uganda Clays Ltd, a partly government-owned enterprise listed on the Uganda Securities Exchange, has reported a deepening net loss of about UGX5 billion for the year ending December 31, 2024 nearly doubling its previous year’s shortfall of UGX2.85 billion.

The company, in which the National Social Security Fund (NSSF) holds a significant stake, attributed its declining fortunes to soaring production costs and swelling finance expenses.

This comes even as the manufacturer posted a 4% increase in revenue to UGX 31.6 billion, largely driven by improved market demand and upgraded equipment, which many had hoped would signal a turnaround.

  • “While sales volumes improved, the benefits were eroded by rising input costs and significant interest charges,” the company said in its financial report.

Uganda Clays saw its gross profit tumble by 5% to UGX 8.3 billion, largely due to escalating production costs. On the financing front, the company’s expenses shot up by UGX 1.4 billion, mainly as a result of accrued interest on a loan from NSSF.

This worrying trend has raised concerns about the ripple effects on the broader construction industry and Uganda’s tax base. Uganda Clays is a key supplier of construction materials such as roofing tiles, bricks, and decorative clay products essentials for the booming real estate and infrastructure sectors.

  • A weakened Uganda Clays potentially tightens supply, which could increase costs for contractors and slow down construction timelines, especially for affordable housing projects.

Additionally, the company’s sustained losses directly undermine tax contributions to government coffers. Corporate taxes are paid on profits, and Uganda Clays’ continuous negative earnings mean less corporate income tax flowing to the Uganda Revenue Authority (URA).

Indirectly, reduced profitability also squeezes supplier networks, employee incomes, and lowers consumption taxes, further denting revenue collection efforts.

According to experts, when manufacturers underperform, it not only affects employment and industrial growth, but it also erodes domestic revenue mobilisation targets.

Despite these challenges, the company managed a slight improvement in its cash reserves, rising to UGX 333 million from UGX 250 million in 2023, thanks to tighter collection efforts from customers.

  • However, with such financial headwinds, no dividend has been proposed for the 2024 financial year, a decision that will be finalised at the company’s Annual General Meeting slated for June 27.
  • Looking ahead, Uganda Clays remains cautiously optimistic. The firm is pursuing an ambitious expansion strategy, including the construction of a new manufacturing plant expected to be operational in 2025. Management believes this investment will modernise production, improve efficiency, and enhance product quality crucial steps toward recovery.

“We are focused on capacity expansion and installation of new machinery to sharpen our competitive edge,” the company’s report noted.

For now, however, the company’s struggles serve as a stark reminder of the fragile balance between industrial ambition and financial health a balance crucial for business sustainability and national revenue collection alike.

Similar Posts You May Like 

  • MTN Youth Skilling Program: Irene Nandyose turns hobby into a thriving business

    MTN Youth Skilling Program: Irene Nandyose turns hobby into a thriving busin..

    Irene Nandyose, a business administration graduate from Makerere University Kampala loved knitting and crocheting during her free time on campus. And it is through this exercise that a business idea was hatched. But the business idea was only implemented in 2020 following training under the MTN ..

  • MTN Uganda unveils the second phase of MTN Ace Tech as 20 enterprises are selected to take part in the program

    MTN Uganda unveils the second phase of MTN Ace Tech as 20 enterprises are se..

    Wednesday 31 st May 2023 Kampala, Uganda- MTN Uganda has unveiled the second phase of MTN ACE-Tech known as the MTN Ace-Tech-Incubation program aimed at equipping enterprises with skills needed to successfully spur growth of their businesses. This follows conclusion of the MTN Ace-Tech's first ph..

  • President commissions fruit processing factory in Nakasongola

    President commissions fruit processing factory in Nakasongola..

    President Yoweri Kaguta Museveni commissioned Kike Tropical Fruits Limited, an extraction and refinery plant. Situated in Kakooge, Nakasongola District, the factory deals in fruit processing. During the commissioning, the President thanked Mr. Francis Mugabe, the proprietor of the factory and his f..

  • Protect Local Industries Museveni

    Protect Local Industries Museveni..

    President Yoweri Kaguta Museveni has said that the government will continue protecting local manufacturers from unfair competition..

  • Mbale Industrial Park Development Takes Off

    Mbale Industrial Park Development Takes Off..

    The Uganda Investment Authority (UIA) has handed over the Mbale Industrial and Business Park site to China Railway Number 3 Group for the design and building of key infrastructure like tarmac roads and water and sewerage systems...

  • Kiira Motors seeks UGX524 billion to fund 5-year plan

    Kiira Motors seeks UGX524 billion to fund 5-year plan..

    Kiira Motors Corporation, a budding indigenous vehicle building enterprise, has presented a UGX524 billion proposed business investment budget to the Presidential Affairs Committee of Parliament. It was contained in the Ministerial Policy Statement, and Budget Estimates for the FY 2024/2025. ..

  • Manufacturers task Gov't, banks on high interest rates

    Manufacturers task Gov't, banks on high interest rates..

    The Government wants commercial banks to lower the interest rates they charge manufacturers so as to stimulate growth in the sector, but banks also insist that the Government has an important role to play. ..

  • Expectations high as UNBS gets hi-tech executive director

    Expectations high as UNBS gets hi-tech executive director..

    Mr. James N. Kasigwa has been named the new executive director of the Uganda National Bureau of Standards (UNBS) following an appointment by the Minster of Trade, Industry and Cooperatives, Francis Mwebesa...

  • Ugandan innovation wins UGX70m engineering prize

    Ugandan innovation wins UGX70m engineering prize..

    An innovation by Mr. Martin Tumusiime and his friends has won 15,000 British Pounds (about UGX70 million) from the Royal Academy of Engineering’s Prize for Innovation, at a ceremony held in Nairobi yesterday...

  • Museveni assents to Free Zones Authority, Exports Board merger

    Museveni assents to Free Zones Authority, Exports Board merger..

    The new law that merges the Uganda Free Zones Authority with the Uganda Exports Promotions Board is one of the Acts that have been assented to by the President...

  • Minister cautions entrepreneurs on informality

    Minister cautions entrepreneurs on informality ..

    Entrepreneurs have been urged to formalize their business ventures if they are to benefit from financial services providers and expand their businesses...

  • Turkish, Chinese investors in trouble over wetlands

    Turkish, Chinese investors in trouble over wetlands..

    The Standards Utilities and Wildlife Court has sentenced Kerim Ray, a Turkish investor and Director of Yamani Construction Limited, to pay a fine of UGX200 million, following his conviction for degrading a wetland in Mukono District...

  • Uganda Breweries invests UGX32 Bn on farmers

    Uganda Breweries invests UGX32 Bn on farmers..

    Uganda Breweries Limited (UBL) has reported a 12% net sales growth in the last financial year, driven by the success of premium beer brands like Guinness and Uganda Waragi. ..

  • Uganda extends oil exploration to Karamoja

    Uganda extends oil exploration to Karamoja..

    Uganda is stepping up exploration in the Moroto-Kadam and Lake Kyoga basins, aiming to boost its reserves to 6.5 billion barrels of oil, a strategic move to solidify its position in the energy industry. ..

  • UMA international trade fair set for October 2

    UMA international trade fair set for October 2..

    The Uganda Manufacturers Association (UMA) has officially launched the 30th Uganda International Trade Fair, set to take place from October 2 -10 at the UMA showgrounds at Lugogo, under the theme; "Celebrating 30 Years of Industrial Excellence." ..

  • Dangote Refinery ousts first petroleum products

    Dangote Refinery ousts first petroleum products..

    Nigeria's Dangote Oil Refinery has begun processing gasoline after delays caused by recent crude shortages, an executive said on Monday...

  • Thousands throng Kapeeka Industrial Park Trade Fair

    Thousands throng Kapeeka Industrial Park Trade Fair..

    President Yoweri Kaguta Museveni has urged communities surrounding Kapeeka Industrial Park to take full advantage of the opportunities it offers in order to market their products and boost their household incomes. ..

  • PMI: Private sector maintains growth trend

    PMI: Private sector maintains growth trend..

    Uganda’s private sector showed resilience in October, with business conditions improving steadily as firms reported robust demand and increased hiring. The latest Stanbic Purchasing Managers’ Index (PMI) places the index at 52.9 for October, slightly down from 54.2 in September...

  • Zero dividends as Vision Group losses worsen

    Zero dividends as Vision Group losses worsen ..

    Uganda’s largest media house, New Vision Printing and Publishing Corporation, has reported a further decline in its financial performance for the year ending June 2024, extending its loss-making streak for the fourth consecutive year...

  • 75% of Ugandans survive on wages - report

    75% of Ugandans survive on wages - report ..

    According to the National Population and Housing Census (NPHC) 2024 final report, only 24% of Ugandan households have an income-generating business enterprise, while 76% rely on wages or subsistence farming...

  • Government woos French investors to Uganda

    Government woos French investors to Uganda..

    Uganda’s Permanent Secretary and Secretary to the Treasury, Ramathan Ggoobi, has invited French investors to explore Uganda’s lucrative business environment, emphasizing the country's generous incentives and high return on investment...

  • African leather designers to compete for top honors

    African leather designers to compete for top honors ..

    Entries are now open for the Africa Talent Leather Design competition —a premier platform for Africa’s designers to showcase their creativity in leather products design and commitment to sustainable fashion...

  • UNBS gets UGX5.5 bn for agri-biz standards

    UNBS gets UGX5.5 bn for agri-biz standards..

    The Uganda National Bureau of Standards (UNBS) has secured UGX 5.5 billion (USD 1.5 million) from TradeMark Africa (TMA) to enhance the standardization of agro-industrial products by Micro, Small, and Medium Enterprises (MSMEs). ..

  • Uganda Breweries gives Rotary UGX100 million boost

    Uganda Breweries gives Rotary UGX100 million boost..

    Uganda Breweries Limited, the maker of Bell beer, has reaffirmed its commitment to corporate social responsibility by donating UGX 100 million towards the 100th Rotary District 9213 Conference. ..

  • Let Ugandans embrace banana value-addition benefits

    Let Ugandans embrace banana value-addition benefits..

    It was former British Prime Minister Winston Churchill's who famously described Uganda as a "beautiful garden" where its “staple food grows almost effortlessly.”..

Most Recent

Popular Links