KAMPALA – Uganda Hotel Owners Association chairperson Jean Byamugisha has urged financial institutions to introduce flexible loan repayment arrangements for hospitality businesses seeking to invest in renewable energy, warning that rigid repayment schedules could discourage hotels from embracing green technologies.
Byamugisha said access to affordable green financing would be critical to the success of Uganda’s National Green Hospitality Initiative, but argued that banks must recognise the seasonal nature of the tourism and hospitality industry when designing loan products.
“One shoe does not fit all. Banks need to restructure their loans to reflect the seasonal nature of the hospitality industry,” she said.
She explained that hotels generally record stronger revenues during peak tourism seasons, enabling them to meet loan obligations, while off-peak periods often come with reduced occupancy and financial pressure.
Byamugisha said lenders should consider allowing hospitality businesses more time to repay their loans during quieter months instead of imposing fixed repayment schedules that may not reflect their actual cash flows.
She argued that flexible repayment arrangements would enable hotels to invest in solar power, energy-efficient equipment and other clean-energy technologies without compromising their ability to meet daily operational expenses.
Her remarks came during the launch of the National Green Hospitality Initiative at Serena Hotel Kampala on October 20, 2026, a programme co-hosted by the Ministry of Energy and Mineral Development, Phiona Nyamutoro and Equity Bank Uganda.
The initiative seeks to help hotels, lodges, resorts and conference facilities reduce energy costs and improve operational efficiency through renewable energy investments.
Equity Bank Uganda’s Director of Public Sector and Social Investments, Catherine Psomgen, said financial institutions must move beyond promoting sustainability and focus on converting viable green-energy opportunities into bankable investments.
“Renewable energy and efficiency should not be viewed simply as environmental expenses, but as investments,” Psomgen said.
She noted that hospitality businesses depend heavily on energy for lighting, cooking, water heating, cooling, laundry and transport, making investments in clean-energy technologies an opportunity to improve profitability and business resilience.
Psomgen said Equity Bank was positioning itself to support the transition through green loans, equipment financing, leasing, blended finance and other financing arrangements.
These financing options are expected to support the adoption of solar photovoltaic systems, battery storage, efficient cooling systems and clean-cooking technologies.
Through a Green Tourism Business Clinic, Equity Bank and other participating financial institutions are also expected to help hospitality operators assess their cash flows, develop bankable projects and explore suitable financing options for energy upgrades.
The initiative further proposes establishing a specialised financing window combining green loans, concessional credit and Energy Service Company pay-as-you-save models to make investments more accessible to hospitality businesses.
Psomgen said the success of the programme should be measured through investments mobilised, technologies deployed, jobs created and improvements in business performance.
The programme also plans to identify four to five hospitality facilities for detailed energy assessments and potential retrofits, creating demonstration projects to encourage wider adoption across the sector.
For hotel owners, however, the success of the initiative will depend not only on the availability of financing but also on whether banks develop repayment arrangements that accommodate the industry’s fluctuating revenues.
Byamugisha maintained that financial institutions must understand the business cycles of hotels and tailor their products accordingly if Uganda’s hospitality sector is to fully benefit from the transition to clean energy.
