Government Secures $540 Million World Bank Funding for Urban Transformation
KAMPALA – The Ugandan government has secured $540 million (UGX 2.1 trillion) from the World Bank to drive urban transformation across the country, Minister for Lands, Housing and Urban Development, Hon. Judith Nabakooba, announced on Monday.
Speaking to journalists at the Uganda Media Centre, Nabakooba revealed that the funding includes an $80 million grant and will finance the Uganda Cities and Municipalities Infrastructure Development (UCMID) Programme—a six-year initiative running from 2026 to 2031.
The programme will be implemented in 10 cities, 26 municipalities, and 13 refugee-hosting districts, directly benefiting an estimated 5.6 million people, including 1.6 million in refugee-hosting communities.
Addressing Key Urban Challenges
The Minister explained that the initiative is designed to tackle critical urban challenges, including inadequate road infrastructure, recurring flooding, gaps in solid waste management, and limited employment opportunities in urban areas.
Under the programme, Ugandan urban centres will receive improved roads and mobility systems, enhanced drainage networks, strengthened waste management services, and better planned urban spaces to support economic activity.
Job Creation and Economic Impact
The programme is expected to generate approximately 20,000 permanent jobs, with 5,000 reserved for refugees and host communities. It will also support small businesses and improve household incomes, particularly for youth and women.
Providing context, Nabakooba noted that 27 percent of Uganda’s population currently resides in urban areas, growing at an annual rate of 5.2 percent. Urban centres are projected to contribute up to 70 percent of the country’s GDP.
Decongesting Kampala
The Minister emphasized that the programme will support the decongestion of Kampala by creating economic opportunities in regional cities, while simultaneously strengthening institutional capacity for urban planning and management.
Next Steps
On implementation, Nabakooba indicated that government will finalize legal agreements with the World Bank, undertake stakeholder sensitisation, and commence procurement processes for infrastructure works.
She called on local governments to ensure compliance with all environmental and social safeguards to guarantee a smooth rollout of the programme.
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