The Government has unveiled its budget priorities for the Financial Year 2026/27, committing trillions of shillings to key sectors aimed at accelerating economic transformation under the Ten-Fold Growth Strategy through the Agro-Industrialisation, Tourism, Minerals, and Science (ATMS) framework.
The financial year 2026/27 budget, which was presented on June 11 at the Kololo Ceremonial Grounds by the Minister of Finance, Planning and Economic Development, Mr Henry Musasizi who presented the budget, said the budget places significant emphasis on agriculture, industrialisation, infrastructure development, human capital, and value addition, while introducing several tax measures to boost domestic revenue mobilisation.
Agriculture Receives Record Funding
The Government has allocated Shs 2.26 trillion to the Agro-Industrialisation Programme, marking the highest funding ever provided to the sector.
Key interventions include agricultural research and innovation, commercialisation of the anti-tick vaccine, expansion of irrigation and water for production, recruitment and facilitation of extension workers, provision of quality agricultural inputs, post-harvest handling and storage facilities, agro-processing and value addition, quality assurance, and market expansion.
The objective is to transition Uganda from exporting raw agricultural commodities to exporting processed and value-added products.
Tourism Sector Gets Shs 567 Billion
To strengthen Uganda’s position as a tourism and investment destination, the Government has allocated Shs 567.32 billion to the tourism sector.
Priority areas include branding and marketing Uganda internationally, tourism infrastructure development, construction of highway sanitation facilities and refreshment centres, hospitality training and standards enforcement, wildlife conservation, health tourism, and economic diplomacy.
Focus on Mineral-Based Industrial Development
The Government has allocated Shs 473.51 billion for mineral-based industrial development, mining, and the oil and gas sector.
The funding will support continued mineral exploration and certification, capitalisation of the Uganda National Mining Company, establishment of mineral markets and buying centres, operationalisation of the East African Crude Oil Pipeline (EACOP), and development of the national oil refinery.
Officials say the goal is to transform Uganda’s mineral wealth into industrial wealth through value addition and processing.
Digital Transformation and Innovation
Government investment in digital infrastructure continues to yield results. During the year, an additional 879 kilometres of fibre optic cable were installed, bringing the national fibre backbone to approximately 62,941 kilometres.
Internet costs have declined from $70 to $35 per megabit per second, while mobile internet subscriptions now stand at 18.5 million. Smartphone connections have reached 20 million and total mobile telephone subscriptions have risen to 57.3 million.
Mobile money transactions increased by 29 percent to Shs 392.7 trillion during the year ending March 2026, while active mobile money accounts reached 36.7 million.
For FY2026/27, the Government has allocated Shs 1.14 trillion to Science, Technology and Innovation (STI), ICT, and the creative industries.
Priority projects include commercialisation of innovations such as Kiira Motors vehicles, Dei BioPharma products, coffee and banana value-added products, establishment of a Hi-Tech City, expansion of research and development, digital infrastructure growth, business process outsourcing (BPO), expansion of free-to-air television coverage, and strengthening intellectual property protection.
Security and Rule of Law Receive Shs 10.21 Trillion
Government has allocated Shs 10.21 trillion to security, governance, and rule of law institutions.
The funding will support modernisation of the Uganda People’s Defence Forces (UPDF), completion of the National Referral Military Hospital and UPDF Headquarters, strengthening border security, counter-terrorism operations, community policing, cybersecurity, immigration services, anti-corruption efforts, and cattle restocking in Acholi, Lango, and Teso sub-regions.
Infrastructure Development Remains a Priority
Transport Sector
The Government has allocated Shs 8.79 trillion for transport infrastructure development. Key projects include construction of the Malaba-Kampala Standard Gauge Railway, rehabilitation of the Meter Gauge Railway, construction and maintenance of roads and bridges, expansion of water transport systems, operationalisation of Kabalega International Airport, upgrading regional aerodromes, and expansion of Uganda Airlines.
Energy Sector
A total of Shs 2.07 trillion has been earmarked for energy development.
The funds will support construction of the 380-megawatt Kiba Hydroelectric Power Plant, a floating solar power facility at Isimba, utility-scale solar projects in Elgon and Acholi, preparatory work for nuclear energy generation in Buyende, expansion of transmission networks, rural electrification, and industrial power connections.
Investing in Human Capital (Health Sector)
The Government has allocated Shs 5.23 trillion to the health sector. Priority areas include maternal and child health, nutrition, immunisation, prevention and treatment of non-communicable diseases, provision of essential medicines, specialised healthcare services, emergency response systems, and efforts toward Universal Health Coverage.
Government also reaffirmed its commitment to increasing domestic financing for essential medicines to reduce dependence on donor support.
Water and Sanitation
To expand access to safe water and sanitation services, the Government has allocated Shs 1.013 trillion.
Currently, the government says 71 percent of households have access to improved water sources, with coverage standing at 68 percent in rural areas and 74.5 percent in urban areas.
Education, Skills and Sports
The education sector will receive Shs 6.66 trillion. Priority interventions include expanding access to quality Universal Primary Education (UPE) and Universal Secondary Education (USE), strengthening STEM and vocational education, improving teacher welfare and training, curriculum reforms, support for public universities and research institutions, and completion of sports infrastructure ahead of AFCON 2027.
The Government has also allocated an additional Shs 568.65 billion for salary enhancements for primary school teachers and arts teachers in secondary schools and BTVET institutions.
Social Protection
A total of Shs 173.55 billion has been allocated to social protection programmes. The funds will support economic empowerment initiatives, labour standards enforcement, youth employment programmes, women’s economic participation, social protection systems, and establishment of a Labour Market Information System.
Overall, the Government has allocated Shs 13.56 trillion to health, education, water and sanitation, and social protection.
Manufacturing and Industrial Development
The Government has allocated Shs 1.03 trillion to manufacturing and industrial development.
In this sector, Priority interventions include additional capitalisation of the Uganda Development Corporation (UDC), industrial park development, value addition to agricultural and mineral products, market access for locally manufactured goods, strengthening Special Economic Zones, and establishment of regional industrial incubation hubs.
The number of formal factories in Uganda has risen to 10,437, with 690 operating within industrial parks.
Environmental Protection and Disaster Preparedness
To strengthen environmental conservation and climate resilience, the Government has allocated Shs 494.08 billion.
The funds will support protection of 1.26 million hectares of forests and wetlands, restoration of 10,000 hectares of degraded wetlands, demarcation of riverbanks and lakeshores, and enhancement of weather forecasting and early warning systems.
An additional Shs 361.88 billion has been allocated to the Contingency Fund for disaster response.
Justice and Parliament Funding
Government has allocated Shs 665.55 billion for administration of justice, focusing on recruitment of judicial officers, reduction of case backlog, court digitisation, anti-corruption efforts, and expansion of access to justice.
Parliament has been allocated Shs 1.23 trillion to support its constitutional roles of legislation, appropriation, oversight, and representation.