news 26 October 2026 Daily Monitor (Uganda)

Finance Ministry Defends Leaked Allowance Circular Amid Economic Strain

The Ministry of Finance has faced public backlash following a leaked circular outlining increased duty allowances for top officials, clarifying that the funds originate from donor projects rather than state revenue. Source: https://www.monitor.co.ug/uganda/news/national/govt-faces-backlash-over-leaked-circular-standardising-higher-duty-allowances-amid-shilling-pressure-5646900

A leaked internal circular from the Ministry of Finance, Planning, and Economic Development has ignited widespread public discussion. Released as the government champions fiscal discipline and navigates the depreciation of the Uganda Shilling, the document details revised rates for duty-facilitating allowances.

Dated September 21, 2026, and signed by Deputy Secretary to the Treasury Patrick Ocailap, the directives instruct accounting officers across major initiatives—such as PIM Plus, REAP, UgIFT, and Global Fund Grants—to adopt revised allowance rates based on older guidelines.

The document outlines upward adjustments to domestic night and safari day allowances for senior political leaders, judicial officers, and local government figures. Notably, the Vice President’s domestic night allowance moves from Shs210,000 to Shs500,000 per night, while the Prime Minister’s rate increases from Shs200,000 to Shs490,000. Cabinet ministers and various oversight heads, including the Auditor General and the Inspector General of Government, also see significant upward adjustments.

The standardisation arrives during a delicate economic climate characterised by a weakening local currency and growing public demands for reduced government expenditure. Critics questioned the timing of increased allowances while ordinary citizens face rising economic pressures and calls for austerity remain high.

In response to the growing backlash, Ministry of Finance communications officer Isaac Shaka clarified that the operationalised rates apply strictly to donor-backed projects, specifically World Bank funds, rather than consolidated government revenues. The ministry announced plans to issue a comprehensive public statement to outline the implementation framework and background of the allowances.