Category: Daily Monitor

The government has introduced a tax holiday for developers of hotels and other ultra-luxury tourism facilities as part of new measures aimed at boosting investment in the tourism sector.

Presenting the National Budget for the 2026/27 financial year at Kololo Ceremonial Grounds on Thursday, the Minister of Finance, Planning and Economic Development, Mr Henry Musasizi, said the incentive will target investors developing high-end tourism facilities in Uganda.

Under the new measure, foreign investors will qualify for the tax holiday if they invest at least $10 million (approximately Shs37.7b), while Ugandan investors must invest a minimum of $5million (approximately Shs18.8b).

‘Introduction of a tax holiday for developers of hotels and other ultra-luxury tourism facilities investing at least USD 10 million for foreign investors, and $5 million for Ugandan investors,’ the Minister said while outlining tax measures approved by Parliament.

Mr Musasizi noted that Foreign Direct Investment remained strong at USD3.2 billion in the twelve months ending March 2026, which reflects growing investor confidence in Uganda’s economy.

He emphasized that investors are increasingly showing interest in Uganda’s small and medium enterprises, adding that, ‘Kampala-based start-ups attracted about USD 30 million in 2025, up from USD 4 million the previous year, signaling growing confidence in the country’s innovation ecosystem and emergence as a destination for entrepreneurship, technology, and investment.’

The announcement comes as the government continues to highlight the recovery of the tourism sector following the COVID-19 pandemic.

Mr Musasizi noted that tourism receipts increased to USD1.86 billion in 2025, up from USD1.4 billion recorded in 2018/19 before the pandemic. The sector had fallen to a low of $562 million in 2020 at the height of the COVID-19 disruptions, during global travel restrictions.

‘This remarkable recovery from the lowest receipts of $562 million recorded in 2020 demonstrates growing international confidence in Uganda as a destination for business, investment, and leisure,’ he said.

The Finance Minister noted that tourism remains one of Uganda’s most important export sectors, generating foreign exchange, creating jobs, and supporting thousands of enterprises across the country.

The government has allocated Shs567.32 billion to the tourism sector in the next financial year, with priority areas including branding and marketing of Uganda as a tourism and investment destination, tourism infrastructure development, and improvement of hospitality standards.

‘Priority interventions also include construction of highway sanitation facilities and tourism site refreshment centres, hospitality training, conservation, and wildlife protection to increase the wildlife population across the National Parks.

Other planned interventions include promotion of health tourism and strengthening economic and commercial diplomacy through Uganda’s missions abroad.

This is up from Shs430b that was earmarked for direct investment for the tourism sector in the 2025/26 financial year.

The minister also noted ongoing investments in tourism infrastructure, including development works at the Rwenzori Central Circuit Trail, Kitagata Hot Springs, the Source of the Nile in Jinja, and cultural heritage sites in Moroto and Dokolo.

‘The construction of Kidepo International Airport is also underway to boost tourism in the Karamoja region and investments are aimed at improving visitor experience and strengthening Uganda’s competitiveness as a tourism destination. Twelve regional aerodromes have been maintained to support regional connectivity for tourism and trade,’ Mr Musasizi added.

Marketing push

Mr Musasizi said many achievements have been registered in the tourism sector during the financial year, particularly in marketing Destination Uganda.

‘Uganda’s global tourism visibility is at an all-time high under the ‘Explore Uganda, the Pearl of Africa’ brand, driven by intensified international marketing and participation in major tourism exhibitions across Europe, Asia, Africa and North America,’ Mr Musasizi said.

Adding, ‘Government leveraged global platforms such as the Africa Cup of Nations (AFCON) 2025 in Morocco and the World Travel Market in London to promote Destination Uganda and attract visitors. We also secured bids to host international conferences, strengthening its position in the Meetings, Incentives, Conferences and Exhibitions (MICE) sector.’

He further noted that under the Economic and Commercial Diplomacy (ECD) strategy, Uganda is already seeing improved performance, including increased tourist arrivals, foreign direct investment inflows and export earnings.

‘Government will continue to leverage its Missions Abroad to market Uganda as a preferred tourism, conference and investment destination, expand market access for Ugandan products, attract strategic investors, and mobilise the diaspora to support national development,’ he said.

Mr Musasizi noted that the Budget aims to accelerate the attainment of the Tenfold Growth Strategy, where government has allocated 95.6 percent of discretionary resources to the ATMS; Agro-industrialisation, Tourism Development, Mineral-Based Industrialisation, and Science, Technology and Innovation, and their key enablers.

The newly appointed Minister of Health, Dr. Chris Baryomunsi, has moved to calm growing anxieties over the medical internship crisis, assuring the public that government-sponsored interns will continue to receive full facilitation while the ministry explores options to assist privately sponsored graduates.

Speaking at the official handover ceremony at the ministry headquarters on Wednesday, June 10, Dr Baryomunsi revealed that the Cabinet has directed the ministry to assess the financial implications of supporting privately sponsored graduates undertaking their mandatory one-year medical internship.

“Those who are on government sponsorship will proceed on internship with full support from the government. There is no disruption. It will continue,” Dr Baryomunsi stated.

“We are going to study the financial implications of providing lunch to those who graduate from private facilities… the government can provide lunch to enable them to work.”

The medical internship program in Uganda has recently faced severe strain, characterized by delayed deployments and protests from pre-interns over allowances. Dr Baryomunsi attributed these persistent bottlenecks to a sharp increase in the number of medical graduates from both public and private universities.

To resolve this sustainably, the minister emphasized the need for long-term human resource planning to align health workforce training with the country’s actual staffing requirements.

“Human resource needs in the health sector should be assessed to see how many doctors, nurses, and laboratory experts we need in the next five, 10, or 15 years so that there is a planned arrangement between us and the Ministry of Education that handles training,” he explained.

Beyond internal planning, Dr Baryomunsi identified managing the country’s current Ebola outbreak as an immediate priority, pledging to strengthen ongoing response and containment efforts.

Dr. Baryomunsi’s appointment marks a return to a familiar docket. He previously served as the State Minister of Health for General Duties from March 2015 until June 2016, before being transferred to other Cabinet portfolios, including a stint as the Minister for ICT and National Guidance starting in 2021.

Leveraging his recent experience in the ICT sector, the new minister promised to spearhead the digitalization of health services and improve public communication. He also issued a stern warning to ministry staff regarding accountability and transparency.

“We need to vaccinate ourselves against corruption. No more corruption, as the President themed this term. We shall improve that expertise to see that the health sector can actually make advances as we integrate technology in our work,” Dr Baryomunsi warned.

The outgoing Minister of Health, Dr. Jane Ruth Aceng Ocero, who has been appointed Government Chief Whip, officially handed over the docket. Reflecting on her tenure, Dr. Aceng highlighted milestones including the successful containment of Uganda’s eighth Ebola outbreak, the expansion of intensive care services, and progress on the Lubowa Specialized Hospital project, which she disclosed is now about 70 percent complete.

However, Dr Aceng cautioned her successor about deep-seated systemic challenges that still plague Uganda’s healthcare delivery. She cited inadequate sector financing, a high disease burden-driven by malaria, HIV/AIDS, non-communicable diseases, and mental health conditions-and critically low health insurance coverage, which currently stands at just 1 percent of the population.

She urged Dr Baryomunsi to prioritize the long-pending National Health Insurance Scheme (NHIS) Bill, tackle health worker absenteeism, and accelerate the recruitment and retention of specialists.

“That bill is very important for the population,” Dr. Aceng said, while advising her successor to maintain a close, collaborative relationship with ministry technocrats through regular briefings to ensure well-informed decision-making at the Cabinet level.

The Government of Uganda has unveiled a series of new tax measures for the Financial Year 2026/27 as part of efforts to raise domestic revenue and finance its ambitious national budget. The measures are expected to support the collection of Shs45.96 trillion in domestic revenue, including Shs40.16 trillion in tax revenue.

Parliament approved several tax policy reforms designed to strengthen revenue mobilisation while supporting economic growth, investment, and job creation.

Income Tax Reforms

Among the key income tax measures is the extension of the income tax exemption granted to Bujagali Energy Limited until 2032, a move aimed at maintaining stability in the energy sector.

The government has also increased the Pay As You Earn (PAYE) threshold from Shs235,000 to Shs335,000 per month, providing relief to low-income earners and increasing disposable income for workers.

In addition, a 5 percent withholding tax has been introduced on interest payments made to foreign lenders. Taxpayers earning rental income will now have the option of filing and paying rental income tax monthly, a measure expected to improve compliance and ease administration.

The reforms further provide tax holidays for developers investing in high-end tourism facilities, as well as tax relief for Tier 4 financial institutions through deductions for bad debt provisions.

Value Added Tax (VAT) Changes

To support small businesses and reduce compliance costs, the VAT registration threshold has been increased from Shs150 million to Shs300 million in annual turnover.

The government has also extended VAT deferment to inputs used in iron ore processing, a move intended to support industrialisation and value addition within the mining sector.

Excise Duty Adjustments

Several excise duty rates have been increased as part of the government’s strategy to generate additional revenue.

The excise duty on petrol and diesel has been raised by Shs200 per litre. Alcoholic beverages will now attract excise duty of Shs3,500 per litre, up from Shs1,700.

Motorcycles at first registration will be subject to a higher excise duty of Shs500,000, compared to the previous Shs200,000.

Environmental concerns have also influenced the tax reforms, with substantially higher excise duties imposed on single-use plastics to discourage pollution and environmental degradation.

Other increases include: Cooking oil: from Shs200 to Shs400 per litre. Cement: from Shs500 to Shs750 per 50-kilogram bag. Sugar: from Shs100 to Shs200 per kilogram.

It should also be noted that the government has also introduced new excise duties on paints, varnishes, and cooking fats.

New Stamp Duty Charges

Parliament approved the introduction of stamp duty on vehicle registration and transfers.

Under the new rates, motorcycles, tricycles, and quadricycles will attract a stamp duty of Shs30,000, while other motor vehicles will be charged Shs200,000.

Tax Relief Measures

To ease the burden on taxpayers and encourage compliance, Parliament approved waivers of principal tax, penalties, and interest owed to the Uganda Revenue Authority (URA) as of June 30, 2016.

The government has also extended existing waivers on outstanding interest and penalties, providing relief to eligible taxpayers and supporting business recovery.

External Trade and Gaming Taxes

The environmental levy on imported used clothing has been increased from 15 percent to 30 percent of the Cost, Insurance, and Freight (CIF) value. The measure is intended to promote local textile and garment manufacturing by making imported second-hand clothing less competitive.

Meanwhile, taxation on betting activities has been raised from 20 percent to 30 percent. The government says the increase is intended to harmonise taxation across gaming activities while generating additional revenue for the national budget.

Outlook for FY2026/27

The FY2026/27 budget reflects the government’s commitment to accelerating economic transformation through strategic investments in agriculture, tourism, industrialisation, infrastructure, digital innovation, and human capital development.

While the new tax measures are expected to place additional obligations on certain sectors and consumers, government officials argue that they are necessary to strengthen domestic revenue mobilisation and reduce reliance on external financing. The reforms are expected to play a critical role in funding priority development programmes and advancing Uganda’s long-term economic growth agenda

When Finance Minister Henry Musasizi rises in Parliament convening at Kololo today to read the National Budget for the 2026/2027 financial year, many Ugandans will be off TV and will not bother. They will be going about their businesses as usual. Research done by the Ministry of Finance a couple of years back indicated that the majority of Ugandans do not care about the Budget. Budget speeches, after all, are often viewed as technical affairs for economists, politicians and civil servants.

But that is a mistake. The Budget being read today is not about government. It is about you. Every shilling allocated, borrowed, spent or wasted affects the life of an ordinary Ugandan. The Budget determines the quality of roads you drive on, the medicines available at your health centre, the classroom your child studies in, the electricity that powers your business and the opportunities available to young people seeking employment.

More importantly, much of the money being discussed today comes from citizens themselves. Every time you buy airtime, fuel your vehicle, purchase household goods, pay school fees through taxed services, or operate a business, you contribute to government revenue. Whether directly or indirectly, Ugandans finance the State through taxes. This means citizens are not spectators in the Budget process. They are investors.

The government may collect the money, but it does so on behalf of the people. Parliament may approve expenditure, but it spends resources that belong to the public. Public officials may administer the funds, but they are merely custodians. When government secures loans from development partners or international financial institutions, it is not borrowing for anybody else but in the name of Ugandans. The debt incurred today will be repaid by citizens through current and future taxes. The child in primary school today may one day help pay for loans contracted before reaching adulthood.

That is why debt should concern every Ugandan, not just financial experts. Likewise, whenever public funds are mismanaged, stolen or wasted, the loss is not government’s. It is the loss for taxpayers. It is a health centre that remains unequipped. It is a classroom that is never built. It is a road that remains impassable. It is a young person who misses an opportunity because resources were diverted elsewhere.

As Ugandans listen to today’s Budget speech, they should, therefore, ask simple but important questions: How will this spending improve lives? Will borrowed money generate value for future generations? Are public resources being used efficiently? Who will be held accountable when programmes fail? The Budget is not a gift from government to citizens. It is a plan for managing citizens’ resources. Whether the money is spent on roads, hospitals, schools, agriculture, security, debt repayment or government administration, it belongs to the people first. Every allocation should, therefore, be judged according to one standard: does it serve the Ugandan taxpayer?

The figures that will be announced today are tens of trillions of shillings, but behind every number is a citizen. Behind every tax collected is someone’s hard work. Behind every loan contracted is a future obligation. Behind every wasted shilling is a missed opportunity.

Tragedy struck Bugema in the Industrial City Division of Mbale City on Wednesday night after a fierce fire gutted dozens of kiosks and market stalls, leaving traders and residents counting heavy losses.

Property and merchandise worth millions of shillings were reduced to ashes in the inferno, which began around 11:00 p.m. in a parking yard near the Fahaab petrol station along the busy Mbale-Tororo road. Fueled by highly flammable goods such as plastics and tightly packed wooden structures, the flames rapidly spread through the commercial hub.

Eyewitnesses reported that the entire area was engulfed within minutes.

Mr. Moses Mafumo, a local resident, noted that while no fatalities or injuries had been confirmed by morning, the economic damage was devastating.

“At the moment, the cause of the fire has not yet been established as police launch investigations,” Mafumo said.

The incident sparked outrage among locals and affected business owners, who expressed deep frustration over what they described as a delayed response by the Mbale Police Fire and Rescue Services. Many argued that the containment could have been faster had the response teams arrived earlier.

For many local entrepreneurs, the fire represents total financial ruin. Ms. Sarah Namono, a prominent trader in the area, wept as she recounted how she had recently secured a hefty loan from a local money lender to boost her business.

“I had just borrowed money to restock my stall, hoping to expand and attract more customers, but now everything is gone,” Namono lamented.

With her merchandise completely destroyed, she expressed deep anxiety over how she would recover, let alone meet her looming financial obligations and repay the debt.

By 1:20 a.m. on Thursday, the scene remained a picture of despair. Dozens of traders and community members were seen sorting through the smoking debris in a desperate search for salvageable goods, while others stood by in visible shock and sorrow.

Elgon Regional Police Spokesperson, Mr. Rogers Taitika, confirmed the incident, stating that official investigations into the exact cause of the blaze are actively underway.

This is not an isolated incident in Mbale City, which has battled a string of devastating commercial fires in recent years. In July 2023, a similar blaze gutted the Kumi Road Market, destroying property worth millions. Prior to that, in April 2022, another fire swept through the Mbale Main Garage in St. Andrews Cell, South Central Ward, leaving mechanics and traders bankrupt.

The frequency of these incidents reflects a worrying national trend. According to the Police Annual Crime Report, the Directorate of Fire Prevention and Rescue Services registered 1,000 fire incidents nationwide. Notably, fire cases in the Elgon region rose sharply from 11 to 39 within a one-year period.

Nationally, residential and commercial structures remain the most vulnerable, with electricity-related faults accounting for nearly half of all registered fire incidents, followed closely by human negligence and the misuse of wax candles.

Prime Minister and Leader of Government Business, Ms Robinah Nabbanja, has issued a stern warning to cabinet ministers over persistent absenteeism from parliamentary sittings, declaring a policy of zero tolerance in her second term.

Speaking on June 10, 2026, during the official handover ceremony for ministers under the Office of the Prime Minister (OPM), Ms Nabbanja emphasized that public officials must be present in the August House to respond to urgent issues raised by Members of Parliament (MPs) and ensure that government business is effectively executed.

‘I want to commit that we shall not allow the absence of ministers in Parliament. Every ministry has got more than one minister, I believe, and now the President is very clear on this. The Government Chief Whip will be giving us a rota,’ Ms. Nabbanja said. of an era for dodging plenary

Ministerial absenteeism has been a recurring bottleneck in the 11th Parliament, frequently drawing the ire of the House leadership. On several occasions, presiding officers have been forced to prematurely adjourn parliamentary business because no frontbenchers were available to respond to national concerns.

The crisis previously prompted Deputy Speaker Thomas Tayebwa to express open dissatisfaction, at one point directing the Government Chief Whip to “name and shame” persistent culprits.

To address the friction, Ms. Nabbanja promised a fresh, structured approach to managing government schedules in the House, resolving an administrative disconnect that plagued her previous tenure.

‘This time around, I will not tolerate anyone being absent. I don’t want to hear that a certain minister is away when they are on the Order Paper. For example, the Ministry of Agriculture has about five ministers; how can all of them be absent?’ the Prime Minister questioned.

‘We are going to engage with the Speaker to come up with an Order Paper. If a minister is away on official duties, we will not put that ministry on the Order Paper. This coordination was missing, but this time we shall see better alignment,’ she explained.

Driven by tenfold growth strategy

Ms Nabbanja noted that the chronic absence of ministers does more than stall parliamentary debate; it actively weakens accountability, delays government legislation, and undermines the oversight role of the legislature.

According to the Premier, total commitment from the front bench is vital as Uganda embarks on an ambitious economic transformation blueprint. The government’s immediate focus relies on implementing the Tenfold Growth Strategy, a long-term plan designed to expand Uganda’s economy from USD 69.3 billion to USD 500 billion by 2040.

The strategy is anchored on four pillars:

Agro-industrialisation

Tourism development

Mineral beneficiation

Science, technology, and innovation

‘We need each other and we shall support one another, I promise. We shall also work very closely with our technical officers, who should give us timely technical support and guidance,’ she added.

High scorecard amid policy bottlenecks

Despite the disruptions caused by absenteeism in the past, Ms. Nabbanja defended the government’s performance, revealing that her team achieved an average performance rate of 88% during her last term.

Providing a breakdown of the OPM’s legislative performance over the last five years, she highlighted that:

Government bills introduced stood at 82%.

Motions submitted reached 96%.

Written questions to the Prime Minister were responded to at a 99% rate.

Oral questions to ministers saw a 95% response rate.

Ministerial statements presented stood at 93%.

Action Taken reports stood at 98%, while Treasury Memoranda submitted by the Ministry of Finance achieved a 100% completion rate.

Additionally, she provided updates on the ongoing Cattle Restocking Programme in the Acholi, Lango, and Teso sub-regions, revealing that by last week, 2,001 beneficiary households had received payments totaling Shs 10.05 billion, representing 20.5% of the total budget.

New cabinet blood

The ceremony marked the transition of power within the OPM as a reconfigured cabinet team took office. Incoming Minister for Karamoja Affairs, Mr John Baptist Lokii, pledged to prioritize development and accelerate the government’s affirmative action agenda for the restive sub-region.

The reshuffled OPM team includes:

Hon. Dr. Crispus Walter Kiyonga: 2nd Deputy Prime Minister and Deputy Leader of Government Business

Hon. Sam Engola: Minister for Relief and Disaster Preparedness

Hon. Eng. Hillary Onek: Minister for General Duties

Hon. Jane Ruth Aceng: Government Chief Whip

Hon. Lokii John Baptist: Minister for Karamoja Affairs

Hon. Beatrice Akello: Minister of State for Northern Uganda Affairs

Hon. Anyakun Esther Davinia: Minister of State for Karamoja Affairs

Hon. Grace Mary Mugasa: Minister of State for Bunyoro Affairs

Uganda’s economy is on course for its fastest growth in decades, with the government projecting a dramatic expansion driven largely by the commencement of commercial oil production later this year.

Presenting the National Budget for the Financial Year 2026/27 at Kololo Ceremonial Grounds on Thursday, the Minister of Finance, Planning and Economic Development, Mr Henry Musasizi, said economic growth is expected to accelerate to 10.2 percent in FY 2026/27, marking Uganda’s first return to double-digit growth since the economic reforms of the 1990s.

‘Most importantly, a larger economy will create more jobs, raise household incomes, expand business opportunities, and generate the resources required to invest in quality education, healthcare, infrastructure, security, and other public services that improve the lives of Ugandans,’ Mr Musasizi said.

The minister said the projected growth reflects the success of the government’s long-term strategy of investing in security, infrastructure, wealth creation and productive sectors of the economy.

Strong Economic Fundamentals

Despite ongoing geopolitical tensions, global trade disruptions and economic uncertainty worldwide, Uganda’s economic outlook remains robust, according to the government.

‘The economy is stable. Growth is accelerating. Inflation is low. The exchange rate is stable. Exports are rising. Investment is increasing. And confidence in Uganda’s future remains strong,’ Mr Musasizi told Parliament and guests.

Uganda’s economy is estimated to have grown by 6.4 percent in FY 2025/26, slightly higher than the 6.3 percent recorded the previous year. By the end of June 2026, the economy is projected to reach Shs250.4 trillion ($69.3 billion), while GDP measured in purchasing power parity terms is estimated at $197.1 billion.

The GDP per capita is projected to rise to $1,420, equivalent to approximately Shs5.1 million per person.

Inflation Remains Under Control

The government reported that inflation remains low and stable, averaging 3.8 percent in FY 2025/26, compared to 3.5 percent in the previous financial year.

According to the minister, the stability has been supported by effective coordination between fiscal and monetary policies, stable food prices and improved fuel supply management.

‘Low inflation protects household incomes, supports business planning and strengthens investor confidence. Government remains committed to maintaining price stability as a cornerstone of sustained economic growth,’ he said.

Investor Confidence Growing

The government also highlighted growing confidence among investors, citizens and international visitors.

Foreign Direct Investment (FDI) remained strong at $3.2 billion in the 12 months ending March 2026, reflecting sustained investor confidence in Uganda’s economy.

Of particular significance, Mr Musasizi noted growing interest in Uganda’s small and medium-sized enterprises (SMEs). Start-ups based in Kampala attracted approximately $30 million in investment in 2025, a sharp increase from $4 million the previous year.

‘This surge signals growing confidence in Uganda’s innovation ecosystem and affirms our emergence as a destination for entrepreneurship, technology and investment,’ he said.

Remittances from Ugandans working abroad also increased significantly, rising from $1.9 billion to $2.8 billion over the same period, providing a major source of foreign exchange, investment capital and household income.

Tourism Fully Recovers

Uganda’s tourism sector has fully recovered from the effects of the Covid-19 pandemic, according to the budget statement.

Tourism earnings rose to $1.86 billion in 2025, surpassing the $1.4 billion recorded before the pandemic in 2018/19. The sector had fallen to a low of $562 million in 2020 during global travel restrictions.

The government said the recovery demonstrates growing international confidence in Uganda as a destination for business, investment and leisure travel.

To sustain the momentum, the government plans to increase investments in tourism infrastructure, security and economic diplomacy through Uganda’s missions abroad.

Stable Shilling and Rising Reserves

The Uganda shilling remains one of Africa’s best-performing freely floating currencies, supported by prudent macroeconomic management and strong foreign exchange inflows.

Foreign exchange reserves increased to $6 billion in the year ending March 2026, up from $3.6 billion a year earlier.

Mr Musasizi said the government’s decision to import petroleum products directly through the Uganda National Oil Company (UNOC) had strengthened supply stability and reduced pressure on the foreign exchange market. ‘We expect the exchange rate to remain broadly stable despite ongoing global uncertainties,’ he said.

Exports Reach Record Levels

Uganda’s export sector continued its impressive performance, with export earnings reaching $18.04 billion in the 12 months to March 2026, compared to $5.93 billion four years earlier.

Major exports included gold, coffee, cocoa, fish products, steel products, sugar and manufactured goods. Coffee exports alone generated $2.46 billion, up from $1.84 billion the previous year.

The Middle East remained Uganda’s largest export destination, accounting for $6.3 billion in exports, followed by Africa ($4.1 billion), the European Union ($2.5 billion) and Asia ($2.0 billion).

The minister attributed the performance to government policies promoting industrialisation, value addition, export growth and market access.

‘Exports are the engine of Uganda’s transformation. They generate foreign exchange, create jobs, support enterprise growth and strengthen economic resilience,’ he said.

The strong export performance, combined with remittances and investment inflows, helped Uganda record a Balance of Payments surplus of $2.47 billion, the highest level in 15 years.

Employment Trends Improve

The government said Uganda’s economy continues to undergo structural transformation, with more people moving into higher-productivity sectors.

The services sector now accounts for 50.5 percent of total employment, while agriculture’s share has fallen to 37.1 percent. Industry contributes approximately 12.4 percent of total employment.

Formal private-sector employment increased dramatically from 672,300 workers in FY 2016/17 to more than 2.3 million workers in FY 2024/25, representing a 245 percent increase.

In addition, Uganda recorded 503,738 public sector jobs and more than 10.5 million informal sector jobs as of April 2026.

Mr Musasizi said the growth demonstrates that the economy is not only expanding but also creating productive employment opportunities for Ugandans.

Revenue Collections Strengthen

Government revenue collection continued to improve, with domestic revenue projected at Shs35.7 trillion in FY 2025/26, compared to Shs32.3 trillion collected the previous year.

Domestic revenues financed approximately 80.9 percent of the government’s discretionary budget, a development the minister described as a major step toward fiscal self-reliance.

‘Increasing domestic revenue is not merely a fiscal objective. It is a sovereignty objective,’ he said.

Shs84.4 Trillion Budget for FY 2026/27

The government unveiled a total resource envelope of Shs84.39 trillion for FY 2026/27. The funding will come from:

Domestic revenues: Shs45.96 trillion

Domestic borrowing: Shs11.97 trillion

Domestic debt refinancing: Shs13.97 trillion

External borrowing for budget support: Shs1.22 trillion

External project financing: Shs11.27 trillion

Key expenditure allocations include:

Wages and salaries: Shs9.71 trillion

Non-wage recurrent expenditure: Shs33.28 trillion

Development expenditure: Shs22.05 trillion

Domestic debt refinancing: Shs13.97 trillion

Debt amortisation: Shs4.18 trillion

Repayment to Bank of Uganda: Shs547 billion

Domestic arrears: Shs317 billion

Local government expenditure from own revenue: Shs339.8 billion

With oil production expected to commence later this year and key economic indicators showing sustained improvement, the government believes Uganda is entering a new phase of accelerated growth that could transform the country’s economic landscape and improve livelihoods across the nation.

The Uganda Wildlife Authority (UWA) and the African Wildlife Foundation (AWF) have agreed to enter into a collaborative park management arrangement that will see AWF inject up to $21 million (Shs78.8 billion) into the conservation management of Kidepo Valley National Park.

Kidepo Valley National Park, located in northeastern Uganda’s Karamoja region, spans vast rugged savannah at the foothills of Mount Morungole and is traversed by the Kidepo and Narus rivers.

The specific details of how the two entities will jointly manage the park remain limited. However, in an April 9, 2026 letter, which this newspaper has seen, and was addressed to the AWF Country Director, UWA Executive Director James Musinguzi noted that the UWA Board of Trustees had already endorsed the proposal and that UWA was ready to enter into the partnership.

‘Refer to your letter of 12th March 2026 submitting the Collaborative Management Partnership (CMP) proposal for the Kidepo Valley. Following your presentation of the proposed CMP to the Uganda Wildlife Authority (UWA) Board of Trustees on 08th April 2026, the Board, vide MIN6/46/BOT10/2026 approved the Kidepo Valley Conservation Landscape CMP and authorized UWA to work with AWF to develop a detailed Business Plan to facilitate fundraising and implementation of the CMP,’ the letter signed by Mr Musinguzi in part reads.

Mr Musinguzi said following clearance by the UWA Board of Trustees, management is ready to engage the AWF team to work together in protecting wildlife species in Kidepo Valley National Park. He emphasized that the partnership is crucial because it enhances management effectiveness not only in the park but also in the Karenga Community Wildlife Management Area, targeted Central Forest Reserves, and other biodiversity hotspots within the Kidepo Valley Conservation Landscape.

‘Together, we aim to transform the KVCL into a resilient ecosystem and sustainable protected area that contributes to Uganda’s socio-economic development while promoting conservation and sustainable livelihoods for local communities,’ he said.

What is on offer?

Attempts to obtain clarification from AWF Uganda Country Director Rose Ssebutnidira on the detailed plan were unsuccessful.

However, under the proposed collaborative management framework, AWF will inject up to Shs78.8 billion over the next 10 years, with Shs3.8 billion disbursed immediately once the agreement is signed, and the remainder spread across the decade.

AWF already runs several programmes in Uganda, including anti-poaching and counter-trafficking, mitigating human-wildlife conflict, and promoting conservation education around protected areas. For example, under its Canines for Conservation initiative, AWF deployed trained sniffer dogs and handlers at Entebbe International Airport to detect illegal wildlife products. In wildlife crime prosecution, AWF has partnered with UWA and the Office of the Director of Public Prosecutions to train officials in combating wildlife crime.

In human-wildlife conflict mitigation, AWF equips local scouts with deterrent tools such as Roman candles and protective gear in hotspots like Kidepo, Queen Elizabeth, and Murchison Falls. It has also introduced climate-resilient, wildlife-friendly farming practices, such as sustainable chili and cotton, to reduce crop raiding by elephants and provide alternative income for frontier communities.

UWA highlighted AWF’s proven expertise in mobilizing large-scale conservation financing, facilitating master planning, and implementing people-centered, conflict-sensitive landscape approaches.

‘We are confident that AWF’s experience in transboundary and landscape-level conservation, strategic partnerships, and investment mobilization will be instrumental in achieving the goals of the CMP,’ Mr Musinguzi said.

He added that UWA has committed, subject to approval by the Attorney General, to enter into a long-term co-management agreement with AWF for the Kidepo Valley Conservation Landscape. This will include jointly implementing the Integrated Co-Management (ICM) agreement, supporting CMP fundraising efforts, and allocating key staff for implementation.

‘We recognize the importance of establishing a Special Purpose Vehicle (SPV) to ensure transparent management of CMP funds, efficient implementation, and scalable investment. The SPV will, among others, serve as a dedicated structure to oversee CMP implementation, reporting to the UWA Board of Trustees through the Executive Director of UWA,’ he said.

‘We appreciate AWF’s immediate commitment of USD 1 million to initiate the CMP design and implementation and its pledge of USD 20 million over the next 10 years. This investment will play a pivotal role in achieving our shared vision for the KVCL. We therefore authorize AWF to use this communication in pursuing any further steps that may require our commitments before we jointly sign a cooperation framework, and we further look forward to a fruitful collaboration and the successful implementation of the CMP,’ Mr Musinguzi said.

The Government has invested close to Shs11 trillion in wealth-creation initiatives aimed at transforming households, farmers, youth, women and businesses; the Ministry of Finance, Planning and Economic Development has announced.

Presenting the National Budget for the 2026/27 financial year at Kololo Ceremonial Grounds on Thursday, Finance Minister Henry Musasizi said the interventions are reducing barriers to economic participation and creating opportunities across the country.

At the centre of the government’s strategy is the Parish Development Model (PDM), which Mr Musasizi described as the most significant programme for eliminating subsistence living and expanding participation in the money economy.

‘PDM is not merely a financing programme. It is a structural transformation programme. Its objective is to move households from subsistence to commercial production; from survival to enterprise; and from poverty to prosperity,’ he said.

According to the minister, the Government has transferred Shs4.4 trillion to all 10,589 parishes across the country over the past five years as revolving capital. By the end of June, the programme is expected to have reached more than four million beneficiaries.

Mr Musasizi said the initiative is already improving household incomes, strengthening food security and creating local economic opportunities for Ugandans who previously depended on subsistence farming.

The next phase of the PDM will focus on increasing productivity, promoting value addition and improving market access for beneficiaries.

‘My Ministry will seek policy guidance to ensure that underserved and densely populated parishes, particularly in urban areas, receive adequate funding,’ he said. ‘We will also begin a gradual transition from Government transfers to a self-sustaining financial ecosystem, ultimately a PDM Bank, supported by strong repayment performance, governance and value-chain development.’

Additional Wealth-Creation Programmes

Beyond the PDM, the Government has continued to finance a range of wealth-creation funds and enterprise support programmes.

Under Emyooga, the Government has injected Shs760 billion in revolving funds, leading to the establishment of 7,148 SACCOs with more than 2.48 million members. The programme has accumulated savings of Shs95.3 billion, and an additional Shs100 billion has been earmarked for the 2026/27 financial year.

The iKatale Loan Facility, launched through the Microfinance Support Centre, is providing affordable working capital to market vendors and informal urban traders. The facility is currently being piloted in six major markets in the Kampala Metropolitan Area-Owino, Nakawa, Kalerwe, Busega, Nakasero and Ggaba-and offers loans at an annual interest rate of 8 percent. A nationwide rollout is planned for the next financial year.

Government also highlighted the success of the Small Business Fund, established in 2021 to help enterprises recover from the effects of the COVID-19 pandemic. The fund has disbursed more than Shs82.1 billion to over 4,000 small and medium enterprises, offering loans of up to Shs500 million at a 10 percent interest rate.

In the agricultural sector, the Agricultural Credit Facility has received Government contributions totaling Shs371.7 billion, leveraging cumulative disbursements of Shs1.35 trillion to more than 14,000 beneficiaries.

Mr Musasizi announced that the scheme will receive an additional Shs47.68 billion in 2026/27.

Large-scale farmers have also benefited from a financing scheme under which the Government pays interest on loans obtained from state-owned commercial banks. During the current financial year, Shs41 billion was allocated for interest payments, enabling 186 farmers cultivating more than 50 acres to access Shs169.1 billion in financing. The same amount has been budgeted for the next financial year.

UDB, Women and Youth Programmes Receive Boost

The Uganda Development Bank (UDB) remains a major driver of industrialisation and value addition, having received cumulative Government capitalisation of Shs1.6 trillion. The bank has extended more than Shs2.45 trillion in financing to over 600 businesses in agriculture, manufacturing, tourism, construction and services.

To further strengthen its lending capacity, Mr Musasizi said the Government has allocated an additional Shs442.2 billion to UDB in the 2026/27 budget.

Women entrepreneurs have also benefited from targeted financing. Through the World Bank-funded Generating Growth Opportunities and Productivity for Women Enterprises (GROW) Project, Shs133.14 billion in soft loans has been disbursed to 6,584 women-owned businesses.

Mr Musasizi said this complements Shs153.5 billion previously distributed under the Uganda Women Entrepreneurship Programme (UWEP), which has supported more than 244,000 women.

Youth-focused initiatives continue to expand as well. The Youth Livelihood Programme has financed nearly 25,000 projects benefiting more than 275,000 young people for Shs195.4 billion, while the Youth Venture Capital Fund has supported 57,849 youths.

Mr Musasizi said the Government has additionally established a Shs33 billion revolving fund for musicians and other creative artists to promote enterprise growth and job creation.

Teachers have not been left out of the wealth-creation drive. Mr Musasizi announced the release of Shs20 billion to private teachers’ unions to improve access to affordable credit, in addition to an earlier Shs25 billion provided to Walimu SACCO umbrella structures.

Shs2.49 Trillion Allocated for 2026/27

Mr Musasizi said the various wealth-creation interventions have significantly expanded access to affordable capital, strengthened enterprise development and created employment opportunities across the country.

To sustain the momentum, the Government has allocated an additional Shs2.49 trillion to wealth-creation programmes in the 2026/27 financial year.

The minister said the investment will accelerate the monetisation of the economy, increase productivity and expand wealth creation among Ugandans.

Ugandan coach Mandy Juruni officially parted ways with Rwandan side Kepler Basketball Club on Monday, bringing an end to a memorable three-year spell with the Kigali-based outfit.

Kepler confirmed the development on Monday through a ‘Thank You’ statement, which was posted on all their social media channels.

The departure closes a significant chapter in Juruni’s coaching career, one that challenged him to step outside his comfort zone after years of success at City Oilers.

Having guided the Oilers to nine consecutive National Basketball League titles and established himself as one of the region’s most respected coaches, Juruni arrived at Kepler seeking a different experience.

Rather than taking charge of an established championship contender, he joined a young and ambitious project that was still finding its footing in Rwandan basketball.

Looking back, the former Oilers tactician says he leaves with fond memories and a sense of fulfilment.

‘My time at Kepler was great. It was good to see a lot of these young boys grow into men, working hard every day, going out to battle with them,’ Juruni told Daily Monitor.

‘We had some good memories, winning some big games and some bad games, but overall it was great. The organization was very supportive,’ he added.

While trophies often define coaching careers, Juruni believes his greatest achievement at Kepler was witnessing the growth of both the players and the club.

The experience also forced him to adapt and evolve as a coach.

‘Personally, I have grown as a coach. I moved from coaching a championship team in Uganda, coaching in the BAL, to now coaching a young team that wanted to grow, and you learn a lot doing that,’ he explained.

‘It has shaped me, made me think hard, be creative and be patient. It was a great experience coaching away from my comfort in Uganda to now really working hard and learning cultures, work ethics and different styles.’

Biggest

Juruni’s move to Rwanda was seen as one of the biggest coaching transfers in East African basketball at the time.

After spending over a decade building a winning culture at City Oilers and helping the club compete on the continental stage, many wondered how he would adapt to a rebuilding project.

Three years later, he leaves convinced the move was worthwhile.

Beyond the results on the court, the stint offered him valuable lessons in leadership, player development and cultural adaptation-qualities that could prove vital in the next phase of his career.

For now, however, Juruni’s immediate focus lies elsewhere.

The veteran coach is expected to be heavily involved with Uganda’s men’s national basketball team, the Silverbacks, who are set to hold a 10-day training camp in Kigali ahead of the second window of the FIBA Basketball World Cup African Qualifiers.

Juruni took charge of Uganda’s first window of qualifiers following the unavailability of head coach Goran Lojo.

‘In the immediate time, I am going to spend more time with family. They have missed me fully for three years,’ Juruni said.

‘I will continue working with the national team, help at home with my beloved team (City Oilers) as I wait for the next opportunity. My people are working hard for that.’

With his Kepler chapter now closed, Juruni returns to familiar surroundings carrying fresh experiences and a broader perspective of the game.

Whether his next destination is another club project, a larger role with the Silverbacks or a new challenge elsewhere on the continent, the 47-year-old leaves Rwanda proud of the journey and grateful for the lessons learned.

For a coach whose career has largely been defined by championships, his greatest takeaway from Kepler may not be found in silverware, but in the growth, resilience and relationships built along the way.