government 5 October 2026 Daily Monitor (Uganda)
Uganda to Cut Funding for Underperforming Local Governments
Local governments in Uganda that demonstrate weak performance and service delivery may face reduced development funding. The government is implementing a new system to link financial allocations directly to measurable results. Source: https://www.monitor.co.ug/uganda/news/national/poor-local-govts-face-funding-cuts-over-weak-performance-5620220
The Ugandan government is set to implement stricter measures for the allocation of development funds to local governments, with underperforming entities facing potential funding cuts. This initiative aims to enhance accountability and ensure that increased resources translate into tangible improvements in public service delivery.
The Office of the Prime Minister (OPM) revealed that the results from the 2024/25 local government performance assessments will directly influence future funding decisions for districts, cities, and municipalities. This performance-based approach is designed to reward well-performing entities while simultaneously incentivizing those lagging behind to improve their operations.
Officials note that while the overall performance of local governments has seen some improvement, rising from approximately 60% to 67% between 2024 and 2025, significant challenges persist. Key areas identified for improvement include human resource management, strategic planning, and budgeting processes. A shortage of departmental heads and poor documentation practices are cited as major contributing factors to these weaknesses.
The performance assessment framework evaluates critical sectors such as infrastructure, education, health, and production. Infrastructure development carries substantial weight in the evaluation. To ensure accuracy, the process involves self-assessments by local governments, followed by verification from OPM officials at various service delivery points.
The Ministry of Finance is reinforcing this performance-based funding model, emphasizing that increased financial support must be accompanied by measurable improvements in services. Concerns have been raised regarding issues like staff absenteeism, inefficient use of allocated wages, procurement delays, and the return of unspent funds despite existing staffing shortages. Consequently, future resource allocation will be strictly tied to performance, accountability, and demonstrable service delivery outcomes.
This push for better performance aligns with national development goals, including a target to significantly increase average household monthly incomes. Local governments are urged to align their budgets with these national priorities and to submit their 2027/28 budget framework papers by the upcoming deadline of November 13, 2026.