Uganda’s Stolen Billions: Basajja Balaba’s 24 Billion Leather Factory Fraud

In a country grappling with unemployment, limited industrial capacity, and a struggling export sector, every coin allocated toward economic transformation is sacred. But when those entrusted with steering the ship of development divert resources for personal gain, the consequences reverberate through generations. Such is the grim reality behind the case of businessman Basajja Balaba, who has come under fire for misappropriating Shs 24 billion intended for the establishment of an export-ready leather processing factory.

What was once branded a flagship project to boost Uganda’s leather industry and generate thousands of jobs has instead become a symbol of elite impunity and entrenched corruption.

The Grand Promise: An Export-Ready Leather Hub

When the government allocated Shs 24 billion to Balaba, the vision was clear: establish a modern leather processing hub that would elevate Uganda’s position in the global market. Uganda, blessed with an abundance of livestock, has long suffered from underutilization of its hides and skins. A processing plant, officials said, would reduce raw exports and instead boost value addition, resulting in higher revenues, job creation, and regional trade dominance.

The project was also meant to support President Museveni’s broader vision of import substitution and export-led industrialization. Balaba, a businessman known to have close ties with State House, was entrusted with this vital mission.

But years later, not even a single machine has been installed, no construction has commenced, and no employment has been generated. What has emerged instead is a trail of luxury real estate.

The Stark Reality: Mansions Over Machines

Investigations by watchdog bodies and whistleblowers within the Ministry of Trade revealed a deeply disturbing misuse of public funds. Instead of investing in machinery, land, or factory infrastructure, Balaba reportedly diverted the entire Shs 24 billion toward personal real estate acquisitions, including high-end residential properties in upscale Kampala suburbs.

“No factory, no output—just mansions. This is economic sabotage,” the Anti-Corruption Coalition Uganda (ACCU) decried in a strongly worded statement. They called the incident a “betrayal of national interests” and demanded immediate accountability and prosecution.

Sources indicate that Balaba used the funds to acquire multiple properties under proxies, some of which have already been traced to his immediate family and shell companies registered in their names. The buildings, including luxury villas and apartments, now dot the city skyline as glaring monuments to unchecked greed.

A Culture of Immunity?

What’s particularly troubling about the Balaba saga is the perceived shield of political protection. His proximity to State House, coupled with a history of landing government tenders, has raised red flags among civil society groups. There’s an overwhelming fear that the case, like many others involving politically connected individuals, will gather dust in file cabinets while the nation bleeds.

According to a source within the Office of the Auditor General, this is not Balaba’s first brush with public funds. He has previously been linked to shady land compensation deals and has allegedly benefitted from inflated government contracts.

“Uganda continues to suffer not because of a lack of resources, but because of deliberate theft by elites who treat national coffers like personal bank accounts,” said one anonymous procurement officer familiar with the case.

The Cost of Corruption

The Shs 24 billion meant for the leather processing plant was not just money; it represented hope for thousands of Ugandan youth seeking employment, relief for farmers looking for better prices for hides and skins, and growth for a country striving to industrialize.

According to Uganda Bureau of Statistics (UBOS), Uganda exports raw hides worth approximately $60 million annually, most of which is sold cheaply to foreign markets due to lack of processing capacity. With a well-functioning leather plant, the country could have earned over $200 million annually in value-added exports, boosting foreign exchange and creating over 5,000 direct jobs.

But now, that dream is in ruins.

Civil society organizations, members of Parliament, and activists have called on the Office of the Inspector General of Government (IGG), the Directorate of Public Prosecutions (DPP), and the State House Anti-Corruption Unit to swiftly investigate and prosecute Basajja Balaba.

“We cannot allow a few individuals to strangle this country’s future. The Balaba case must become a turning point,” said Cissy Kagaba, Executive Director of ACCU.

MPs from the Public Accounts Committee (PAC) have promised to summon officials from the Ministry of Trade and Finance to explain how the funds were disbursed without proper accountability mechanisms. Meanwhile, youth activists have taken to social media, launching the hashtag #WhereIsTheLeatherFactory to demand transparency.

Ugandans have grown weary of headlines detailing corruption scandals involving billions of shillings—scandals that rarely result in justice. But the Balaba leather factory fraud cuts especially deep because it embodies the systematic betrayal of development ideals.

For a nation dreaming of middle-income status, each misappropriated project delays progress by years. It is a collective loss, and a moral failing by those sworn to serve.

Until those responsible are held to account—no matter their connections—the promise of industrial transformation will remain just that: a promise.

Editor’s Note: We will continue to follow this story closely, providing updates on any investigations, arrests, or recoveries. Citizens are encouraged to speak up and demand action from their leaders. Accountability is not a privilege—it is a right.