NATIONAL BUDGET SPEECH 2026 – 2027

NATIONAL BUDGET SPEECH 2026 – 2027

The Republic of Uganda

Budget Speech Financial Year 2026/2027

Theme: Full Monetisation of Uganda’s Economy through Commercial Agriculture, Industrialisation, Expanding and Broadening Services, Digital Transformation and Market Access.

Delivered By

HENRY MUSASIZI (MP)

MINISTER OF FINANCE, PLANNING AND ECONOMIC DEVELOPMENT

Thursday 11th June 2026

Kololo Independence Grounds

PREAMBLE

Your Excellency the President of the Republic of Uganda, Your Excellency the Vice President, The Right Honourable Speaker of Parliament, Your Lordship the Chief Justice, The Right Honourable Deputy Speaker, Your Lordship the Deputy Chief Justice, The Vice Chairman of the NRM Party, The Right Honourable Prime Minister, The Right Honourable Deputy Prime Ministers, Honourable Ministers and Ministers of State, Your Excellencies, Heads of Diplomatic Missions, Honourable Members of Parliament, Former National Leaders, Traditional Leaders, Religious Leaders, Distinguished Guests, Ladies and Gentlemen.

A. INTRODUCTION

1. Mr. Speaker, in accordance with Article 155 of the Constitution of the Republic of Uganda and the Public Finance Management Act, Cap. 171, and on behalf of His Excellency the President, I present to Parliament and the people of Uganda the National Budget for Financial Year 2026/27 as approved by Parliament.
2. In this Speech, I will:

i) Present the recent performance of the economy and the outlook for the year ahead;

ii) Account to the people of Uganda on commitments made in FY 2025/26 that is coming to an end in a few days;

iii) Highlight Government priorities for FY 2026/27; and

iv) Outline the strategy for financing the Budget.

B. BACKGROUND

3. Rt. Hon. Speaker, allow me to begin by congratulating His Excellency the President and the National Resistance Movement upon the resounding victory in the recently concluded general elections. In addition, I congratulate His Excellency the President upon assuming Chairmanship of the East African Community. This is in recognition of his exemplary leadership and passion for advancing regional integration and pan-Africanism. I also congratulate Her Excellency the Vice President, Rt. Hon. Speaker, Rt. Hon. Deputy Speaker, Rt. Hon. Prime Minister, Colleague Honourable Ministers, Honourable Members of Parliament, and all other leaders elected to serve our country during this important phase of Uganda’s development.
4. Mr. Speaker, I wish to thank His Excellency the President for the confidence he has placed in me and my political leadership team by entrusting us with the responsibility of leading the Ministry of Finance, Planning and Economic Development. We accept this responsibility with humility, determination and a clear understanding of the task before us.
5. That task is to accelerate wealth creation, eliminate poverty, create productive jobs, and transform Uganda into a 500 billion-dollar economy in the shortest possible time.
6. Rt. Hon. Speaker, Uganda enters this new political term from a position of strength. Unlike many previous election cycles that were characterised by high inflation, exchange-rate instability and macroeconomic uncertainty, our economy remains stable and resilient, and is growing rapidly.
7. Mr. Speaker, this achievement is not accidental. It is a result of deliberate and consistent policy choices under the leadership of His Excellency the President and the NRM Government. For more than three decades, Government has prioritised peace and security, macroeconomic stability, infrastructure development, human capital development, wealth creation and regional integration.
8. As a result, Uganda has built one of the strongest foundations for socio-economic transformation on the African continent. Uganda has:

i) Sustained long-term economic growth above 5 percent despite repeated global shocks;

ii) Surpassed the lower-middle-income threshold of USD 1,136, with gross national income per capita reaching USD 1,389;

iii) Recorded one of the strongest external sector performances in recent history, nearly doubling exports over the last five years;

iv) Expanded access to health, education and social services;

v) Built critical infrastructure that supports investment and competitiveness; and

vi) Established a solid foundation for industrialisation and private-sector-led growth.

9. Mr. Speaker, the challenge before us is no longer simply growing the economy. The challenge is ensuring that growth translates into jobs, household incomes, enterprise development and prosperity for every Ugandan. That is the essence of full monetisation, as His Excellency the President has consistently emphasised. That is the focus of the Tenfold Growth Strategy. And it is the central objective of this Budget.
10. Mr. Speaker, FY 2026/27 marks the commencement of the implementation of the NRM Manifesto. It is also the second year of implementing the Fourth National Development Plan (NDP IV), the first Plan specifically designed to deliver our Tenfold Growth Strategy.
11. Mr. Speaker, in the spirit of protecting the gains, we have maintained the FY 2026/27 Budget theme as: “Full Monetisation of Uganda’s Economy through Commercial Agriculture, Industrialisation, Expanding and Broadening Services, Digital Transformation, and Market Access”.
12. This theme is aligned with the East African Community budget theme: “Deepening Regional Integration and Economic Resilience through Improved Regional Security, Domestic Revenue Mobilisation and Digital Transformation for Inclusive Growth”.

C. RECENT ECONOMIC PERFORMANCE AND OUTLOOK

13. Mr. Speaker, despite geopolitical tensions, global trade disruptions and continued uncertainty in the world economy, Uganda’s economic outlook remains strong and positive. 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.

Economic Growth

14. Mr. Speaker, Uganda’s economy continues to demonstrate remarkable resilience and dynamism. Economic growth for FY 2025/26 is estimated at 6.4 percent, up from 6.3 percent in FY 2024/25. The size of the economy is projected to increase to approximately USD 69.3 billion, equivalent to Shs 250.4 trillion, by the end of June 2026. In purchasing power parity (PPP) terms, Uganda’s GDP is estimated to be USD 197.1 billion. GDP per capita is projected to increase to USD 1,420, equivalent to approximately Shs 5.1 million per person.
15. Mr. Speaker, with commercial oil production commencing later this calendar year, growth is projected to accelerate to 10.2 percent in FY 2026/27. This will mark Uganda’s first return to double-digit growth since the reforms of the 1990s. Most importantly, a larger economy will create more jobs, raise household incomes, expand opportunities for business, and generate the resources required to invest in quality education, healthcare, infrastructure, security, and other public services that improve the lives of Ugandans.
16. This performance confirms that our strategy of investing in security, infrastructure, wealth creation, and the productive sectors is delivering results. I thank His Excellency the President for his steadfast leadership, strategic guidance and insistence on phased prioritisation.

Inflation

17. Mr. Speaker, inflation remains low and stable. Average inflation during FY 2025/26 is estimated at 3.8 percent, compared to 3.5 percent recorded the previous financial year. This stability has been supported by effective coordination between fiscal and monetary policy, stable food prices and improved management of fuel supply. 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.

Investor, Citizen and Visitor Confidence

18. Rt. Hon. Speaker, the strength of an economy is reflected not only in how much it produces, but also in the confidence it inspires among investors, visitors and citizens at home and abroad.
19. I am pleased to report that confidence in Uganda’s economy continues to grow. Foreign Direct Investment (FDI) remains strong at USD 3.2 billion in the twelve months ending March 2026. This reflects growing investor confidence in Uganda’s economy.
20. Of even greater significance, investors are increasingly expressing interest in Uganda’s small and medium enterprises (SMEs). Kampala-based start-ups attracted about USD 30 million in 2025, up from just USD 4 million the year before. This surge signals growing confidence in Uganda’s innovation ecosystem and affirms our emergence as a destination for entrepreneurship, technology, and investment.
21. Mr. Speaker, remittances from Ugandans working abroad have significantly increased to USD 2.8 billion in the twelve months to March 2026 from USD 1.9 billion a year before. Remittances provide an important source of foreign exchange, investment capital and household income.
22. Mr Speaker, tourism has fully recovered from the effects of the COVID-19 pandemic. Tourism receipts increased to USD 1.86 billion in 2025, compared to USD 1.4 billion in 2018/19 before the pandemic. This remarkable recovery from the lowest receipts of USD 562 million recorded in 2020, demonstrates growing international confidence in Uganda as a destination for business, investment and leisure.
23. Government remains committed to safeguarding and expanding this vital source of foreign exchange and jobs by increasing investment in tourism infrastructure, the sector, security, and our Missions Abroad to effectively advance Economic and Commercial Diplomacy (ECD).

Exchange Rate Stability

24. Mr. Speaker, the Uganda Shilling remains one of Africa’s best-performing freely floating currencies. This stability reflects prudent macroeconomic management, a liberalised foreign exchange regime and strong foreign exchange inflows from exports, tourism, FDI, portfolio inflows and remittances. As a result, Uganda’s foreign exchange reserves are now at USD 6 billion in the twelve months to March 2026, up from USD 3.6 billion a year before.
25. Government’s decision to directly import petroleum products through the Uganda National Oil Company (UNOC) has further strengthened supply stability and reduced speculative pressures in the foreign exchange market. We expect the exchange rate to remain broadly stable despite ongoing global uncertainties.

External Sector

26. Rt. Hon. Speaker, Uganda’s export performance has been exceptional. Over the last five years, exports of goods and services have increased by approximately 204 percent. Total export earnings reached USD 18.04 billion in the twelve months to March 2026, from USD 5.93 billion in the twelve months to March 2022. The leading exports include gold, coffee, cocoa, fish products, steel products, sugar and a growing range of manufactured goods. Our coffee exports reached USD 2.46 billion for the year ending March 2026, up from USD 1.84 billion a year before.
27. Uganda’s exports mainly go to the Middle East (USD 6.3 billion), Africa (USD 4.1 billion), Asia (USD 2.0 billion), the European Union (USD 2.5 billion) and the rest of the world (USD 3.1 billion).
28. This success reflects deliberate Government policy focused on industrialisation, value addition, export promotion and market access. Exports are not merely a trade statistic. They are the engine of Uganda’s transformation. They generate foreign exchange. They create jobs. They support enterprise growth. And they strengthen economic resilience.
29. As a result of strong export performance, remittances and investment inflows, Uganda recorded a Balance of Payments surplus of USD 2.47 billion, twelve months to March 2026, the highest in fifteen years.

Employment Creation

30. Rt. Hon. Speaker, the ultimate test of economic policy is whether it improves the livelihoods of our people through productive employment. Uganda’s economy is gradually undergoing structural transformation. The services sector now accounts for 50.5 percent of total employment, up from 47 percent previously, while the share of employment in agriculture has declined from 40 percent to 37.1 percent. On the other hand, industry accounts for approximately 12.4 percent of total employment.
31. These shifts are good, and are consistent with the structural transformation experienced by today’s rich economies, which moved from low to higher productivity sectors.
32. Mr. Speaker, the capacity of our economy to generate formal employment continues to improve. Employment in private formal establishments has increased by 245 percent from approximately 672,300 workers in FY 2016/17 to over 2,319,683 workers in FY 2024/25. This is in addition to the 503,738 public sector jobs and 10,513,014 informal jobs reported in April 2026. This growth in jobs confirms that Uganda’s economy is not only growing but also creating productive jobs for Ugandans. This is on account of deliberate Government interventions to create jobs through industrialisation and wealth creation.
33. However, creating more productive jobs for our rapidly growing population remains an urgent economic priority. This is why Government is investing in ATMS and their enablers to create jobs at scale, especially for young people. Going forward, every major intervention in the National Budget will ultimately be judged by its contribution to jobs, incomes and improved livelihoods.

Fiscal Performance

34. Mr. Speaker, Government’s capacity to finance its development agenda using domestic resources continues to strengthen. This financial year, domestic revenue collections are projected at Shs 35.7 trillion, compared to Shs 32.3 trillion collected the previous financial year.
35. Mr. Speaker, this FY 2025/26, domestic revenue from taxes, non-tax revenues, and Local Government revenues funded up to 80.9 percent of the total discretionary budget of Shs 44.1 trillion. The discretionary budget includes all funds allocated to implementing programmes, excluding debt and other Government obligations. This represents significant progress towards fiscal self-reliance and reduced dependence on external financing.
36. Mr. Speaker, increasing domestic revenue is not merely a fiscal objective. It is a sovereignty objective. A country that finances its development from its own resources enjoys greater policy independence, resilience and sustainability. Therefore, Government will continue to strengthen domestic revenue in line with the Domestic Revenue Mobilization Strategy, while preserving incentives for investment, production and enterprise growth.
37. In FY 2026/27, domestic revenue is projected to increase to Shs 45.6 trillion from Shs 35.7 trillion in FY 2025/26, equivalent to 15.9 percent of GDP. The additional resources will support investments in wealth creation, ATMS and their enablers.

Public Debt

38. Mr. Speaker, as of December 2025, Uganda’s total public debt stood at USD 34.86 billion, equivalent to approximately Shs 126.19 trillion. Of this, external debt amounted to USD 15.84 billion while domestic debt was USD 19.02 billion. This translates into a debt-to-GDP ratio of approximately 53.0 percent.
39. Mr. Speaker, public debt should always be assessed alongside the assets it finances and the economic returns it generates. Over the past 10 years, Uganda’s debt has financed strategic investments that are transforming the productive capacity of our economy. These investments include:

i) Integrated transport infrastructure – 31.1 percent;

ii) Electricity infrastructure – 19.3 percent;

iii) Water infrastructure – 10.3 percent;

iv) Agro-industrialisation – 9.2 percent;

v) Education and health infrastructure – 7.7 percent;

vi) Housing and urban development – 6.3 percent;

vii) Industrial parks and industrial development – 2.0 percent; and

viii) Other investments such as national backbone infrastructure to extend internet, STI, and regional development – 7.0 percent.

40. Mr. Speaker, Uganda’s public debt remains sustainable and is projected to stay so over the medium and long term.

D. ACCOUNTABILITY FOR FINANCIAL YEAR 2025/26 AND PRIORITIES FOR FY 2026/27

41. Mr. Speaker, when the budget for FY 2025/26 was presented last year, Government made several commitments aimed at accelerating monetisation of the economy and implementing the Tenfold Growth Strategy. The budget focused on three broad areas:

i) Wealth-creation programmes;

ii) Strategic investments in ATMS; and

iii) Investment in key Enablers of growth.

42. I am pleased to report that substantial progress has been made in all the above areas.

Wealth-Creation Programmes

43. Mr. Speaker, the foundation of Uganda’s economic transformation is ensuring that every Ugandan participates in the money economy. Government, therefore, has continued to invest in programmes that expand access to affordable capital, strengthen enterprise development and increase household incomes.
44. To date, Government has invested close to Shs 11 trillion directly into wealth-creation initiatives targeting households in subsistence economy, farmers, youth, women and businesses. These interventions are reducing barriers to participation in economic activity while expanding opportunities across the country. Let me highlight what we have done in the flagship wealth-creation programmes:

Parish Development Model

45. Mr. Speaker, the Parish Development Model (PDM) remains Government’s most important intervention for eliminating subsistence and expanding participation in the money economy. I wish to thank His Excellency the President for his vision and unwavering commitment to this programme. 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.
46. Over the past five years, Government has transferred Shs 4.4 trillion to all 10,589 parishes nationwide, as revolving capital. Ugandans who were previously outside the money economy are now engaged in money-making enterprises. By the end of this month, PDM funds will have reached over 4 million beneficiaries. The PDM is raising household incomes, improving food security, and creating local economic opportunities for Ugandans who previously relied on subsistence production. Mr. President, thank you for your visionary leadership.
47. The next phase of the PDM will focus on boosting productivity, strengthening value addition, and improving market access for the PDM beneficiaries. My Ministry will seek policy guidance to ensure that the underserved and densely populated parishes, particularly in urban areas, receive adequate funding. Equally important, we will begin a gradual, deliberate transition from Government transfers to a self-sustaining financial ecosystem—ultimately a PDM Bank—underpinned by strong repayment performance, governance and value chain development.

Other wealth-creation programmes

48. Mr. Speaker, in addition to the PDM, Government has continued supporting enterprise development through other wealth funds:

i) Emyooga: Government has capitalised the programme with Shs 760 billion in revolving funds. To date, 7,148 Emyooga SACCOs have been established, with over 2.48 million members and cumulative savings of Shs 95.3 billion. An additional Shs 100 billion has been allocated in FY 2026/27.

ii) Katale Loan Facility: Government, through the Microfinance Support Centre, introduced this wealth fund to expand access to affordable working capital for market vendors and urban informal operators. It is currently piloted in six major markets within the Kampala Metropolitan Area, and will be rolled out nationwide in FY 2026/27. The piloted markets are St. Balikudembe (Owino), Nakawa, Kalerwe, Busega, Nakasero and Ggaba markets. The facility is providing working capital loans at an interest of 8 percent annually.

iii) Small Business Fund: This fund, initially called the Small Business Recovery Fund, was established in 2021 to help small businesses affected by COVID-19 to recover. The fund has disbursed over Shs 82.1 billion to more than 4,031 small and medium enterprises (SMEs). It provides affordable financing of up to Shs 500 million at a 10 percent interest rate to formal enterprises employing at least two people.

iv) Agricultural Credit Facility: Government has invested a total of Shs 371.7 billion in the facility, as co-financing with participating financial institutions. The facility has cumulatively disbursed Shs 1.35 trillion to more than 14,000 beneficiaries. In FY 2026/27, an additional Shs 47.68 billion has been allocated to further capitalise the facility.

v) Large-Scale Commercial Farmers Financing Scheme: In FY 2025/26, Shs 41 billion was provided for interest payments on behalf of the large-scale farmers cultivating over 50 acres of grains and animal feeds. This support has so far enabled 186 farmers to access a total of Shs 169.1 billion from Government-owned commercial banks. The farmers are expected to repay the principal while Government pays the interest on their behalf. An additional Shs 41 billion has been allocated for FY 2026/27.

vi) Uganda Development Bank (UDB): Government has cumulatively capitalised UDB with Shs 1.6 trillion to provide long-term patient capital to strategic sectors vital for industrialisation and value addition. The bank has extended over Shs 2.45 trillion in financing to more than 600 businesses across agriculture, manufacturing, tourism, construction, and services. An additional Shs 442.2 billion has been allocated in FY 2026/27 to further capitalise UDB.

vii) GROW and other women funds: Through the World Bank-financed GROW Project, Shs 133.14 billion in soft loans has been extended to 6,584 women-owned businesses to support their transition from informality. This complements Shs 153.5 billion previously disbursed under the Uganda Women Entrepreneurship Programme (UWEP), which has benefited 244,805 women.

viii) Youth empowerment programmes: The Youth Livelihood Programme has financed 24,859 projects, benefiting 275,034 youths at a cost of Shs 195.4 billion, while 57,849 youths have benefited from the Youth Venture Capital Fund.

ix) Revolving fund for the creative artists: Government has provided Shs 33 billion to establish a revolving fund for musicians and other creatives to promote enterprise growth and job creation.

x) Support to Teachers’ SACCOs: Government released Shs 20 billion to private teachers’ unions to strengthen teachers’ welfare through improved access to affordable credit. This is in addition to the earlier Shs 25 billion that was provided to Walimu SACCO umbrella structures.

49. Mr. Speaker, these wealth-creation interventions have expanded access to affordable capital, strengthened enterprise growth and created jobs. In FY 2026/27, Government has allocated an additional Shs 2.49 trillion in wealth-creation programmes to accelerate monetisation of the economy and expand wealth creation.

ACCELERATING TENFOLD GROWTH THROUGH ATMS

50. Mr. Speaker, having expanded access to capital through our wealth-creation programmes, Government is now intensifying investment in the sectors that will drive Uganda’s next phase of economic transformation. These sectors are collectively known as ATMS:

a) Agro-Industrialisation;

b) Tourism Development;

c) Mineral-Based Industrial Development (including Oil and Gas); and

d) Science, Technology and Innovation (including ICT and the Creative Arts).

51. These sectors were deliberately selected because they represent Uganda’s strongest comparative advantages and possess the greatest potential to generate exports, jobs, incomes and investment. Together, they form the engine of the Tenfold Growth Strategy. The objective is simple: To convert Uganda’s natural resources, human capital and innovation into wealth, jobs and prosperity.

AGRO-INDUSTRIALISATION

52. Mr. Speaker, agriculture remains the backbone of Uganda’s economy. It employs millions of Ugandans, supplies raw materials to industry, produces exports and sustains livelihoods across the country.
53. However, Uganda’s future prosperity will not come from producing more raw commodities alone. It will come from increasing productivity, expanding value addition, strengthening agro-processing and improving market access.
54. Government, therefore, continues to invest strategically across the entire agricultural value chain.

Agricultural Research and Innovation

55. Mr. Speaker, agricultural transformation begins with science. This year, Government made significant advances in agricultural research and genetics. The anti-tick vaccine facility at the National Livestock Resources Research Institute in Nakyesasa was completed and is now operational, producing about 36 million doses, serving 18 million livestock in the first year.
56. Government also produced foot-and-mouth disease vaccines and continued to advance research on disease-resistant crops and livestock breeds. These investments will reduce production losses, raise productivity, and increase farmer incomes.

Water for Production and Irrigation

57. Mr. Speaker, climate change continues to expose farmers to significant weather-related risks. Government is, therefore, accelerating investment in irrigation and water-for-production infrastructure to reduce dependence on rainfall.
58. Progress was registered on several major irrigation projects, including Kabuyanda dam (in Isingiro district), Atari (Bulambuli district), Wadelai (Pakwach district), Acomai (Bukedea district), Namaitsu (Bududa district), Chembombai (Bukwo district) and Sipi Irrigation Scheme (Bulambuli district). Solar-powered irrigation systems are also being rolled out across the country. These investments will support all-year-round production, increase resilience and improve agricultural productivity.

Mechanisation and Animal Health

59. Mr. Speaker, Government continued developing Regional Agricultural Mechanisation Centres and Animal Disease Control Centres to improve efficiency and productivity in the agricultural sector. Progress was registered in Kiruhura, Mbale, Kiryandongo, Bunyangabu, Nakaseke, Katine and several other districts. These facilities are improving access to modern agricultural equipment, veterinary services and disease surveillance systems.

Expanding Commercial Coffee Production

60. Mr. Speaker, coffee remains one of Uganda’s most important export commodities. Government has, therefore, expanded coffee cultivation into Northern and Eastern Uganda. During the year, two coffee mother gardens were established and over 1.4 million coffee seedlings distributed to 7,532 farmers in Northern Uganda. This intervention will broaden participation in one of Uganda’s most profitable agricultural value chains.

FY 2026/27 Priorities for Agro-Industrialisation

61. Mr. Speaker, a total of Shs 2.26 trillion has been allocated to the agro-industrialisation programme in FY 2026/27. This is the highest allocation ever to this programme. Priority interventions include:

i) Agricultural research and innovation, including funding for anti-tick vaccine commercialisation;

ii) Irrigation and water for production;

iii) Extension services—more extension workers and their facilitation to reach farmers;

iv) Provision of good quality agricultural inputs;

v) Post-harvest handling and storage;

vi) Agro-processing and value addition;

vii) Quality assurance and certification; and

viii) Expanding market access.

62. The objective is to move Uganda from exporting raw commodities to value-added agricultural products.

TOURISM DEVELOPMENT

63. Mr. Speaker, tourism is one of Uganda’s most powerful export industries. It generates foreign exchange. It creates jobs. It supports thousands of enterprises. And it showcases Uganda to the world. The following achievements have been registered this financial year.

Marketing Destination Uganda

64. Uganda’s global tourism visibility is at an all-time high, driven by the aggressive destination marketing under the “Explore Uganda, the Pearl of Africa” brand. The country’s growing international profile and industry endorsements are evident in its recent global presence and awards. In the North American market, Uganda won the “Best in Show – Africa” at the 2026 New York Travel & Adventure Show, bolstered by endorsements from renowned travel journalists. In the Asian market, the country won the “Best Exquisite Destination Award” at the Outbound Travel Mart in Mumbai and gained strong visibility at the South Asia’s leading travel and tourism exhibition in New Delhi.
65. Mr. Speaker, Government has intensified the international marketing of Destination Uganda through participation in major tourism exhibitions and targeted promotion campaigns in Europe, the United Kingdom, North America, Asia, East Africa and North Africa. Government also leveraged high-profile platforms, including the Africa Cup of Nations (AFCON) 2025 tournament in Morocco and the 2025 World Travel Market in London, to showcase Uganda’s tourism potential and attract visitors.
66. In addition, Uganda successfully secured bids to host two international conferences, further strengthening its position as a preferred destination for Meetings, Incentives, Conferences and Exhibitions (MICE).
67. Government also launched the Economic and Commercial Diplomacy (ECD) Strategy as a key instrument for advancing Uganda’s economic transformation. Under this strategy, Uganda’s Missions Abroad have been assigned clear performance targets focusing on four measurable economic outcomes: tourism marketing, trade promotion, investment attraction and diaspora mobilisation.
68. The ECD Strategy is contributing to improved economic performance, with increased international tourist arrivals and receipts, Foreign Direct Investment inflows, and merchandise 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.

Tourism Infrastructure

69. Mr. Speaker, Government continued investing in tourism infrastructure and attractions. Progress was made in the development of museums and cultural heritage sites in Moroto and Dokolo. Investments are also underway in the Rwenzori Central Circuit Trail, Kitagata Hot Springs and visitor facilities at the Source of the Nile in Jinja, including an observatory deck and a modern restaurant. Government also established a new wildlife education centre in Mbale. These investments are enhancing visitor experiences and strengthening Uganda’s competitiveness as a tourism destination.

FY 2026/27 Priorities for Tourism

70. Mr. Speaker, Government has allocated Shs 567.32 billion to continue developing the tourism sector next financial year. Priority interventions will include:

i) Branding and marketing of Uganda as a tourism and investment destination;

ii) Tourism infrastructure development;

iii) Construction of highway sanitation facilities and tourism site refreshment centres;

iv) Improving and enforcing hospitality standards and training;

v) Conservation and wildlife protection to increase wildlife population across the National Parks;

vi) Health tourism; and

vii) Economic and Commercial Diplomacy.

MINERAL-BASED INDUSTRIAL DEVELOPMENT

71. Mr. Speaker, Uganda is richly endowed with minerals. However, sustainable transformation will come not from extracting minerals, but from processing and adding value to them. Government’s strategy is, therefore, to transform mineral wealth into industrial wealth and the following steps have been taken in that direction:

i) Government intensified mineral exploration and quantification. Geochemical surveys for gold were undertaken in Kasanda, Kiboga and Mubende districts. Exploration confirmed an estimated 300 million tonnes of iron ore in Kabale, Rubanda, Rukiga, Kisoro, Kanungu, Kiruhura and Hoima districts. Surveys of copper prospects were conducted at the Bukusu Carbonatite Complex, which also has potential for rare earth elements, as well as at the Boma and Lwensankala sites. Evaluation of uranium, manganese, lithium and nickel deposits is also ongoing across the country.

ii) To add value to Uganda’s limestone, a new clinker factory was commissioned in Moroto district to produce inputs for cement production. The factory operates a 6,000-tonne-per-day clinker production line with annual production capacity of 2 million tonnes of clinker and 3 million tonnes of cement. The project is expected to save the country up to USD 260 million annually in clinker imports and create up to 4,000 jobs.

iii) Government continued to make substantial progress towards First Oil. Construction of the East African Crude Oil Pipeline (EACOP) and the Central Processing Facilities is at an advanced stage and nearing completion. The Tilenga and Kingfisher upstream development projects also registered significant progress despite logistical challenges arising from the ongoing conflict in the Middle East. During the year, 51 additional wells were drilled, bringing the cumulative number to 199 wells, exceeding the 189 wells required for First Oil production later this year.

iv) Government completed the first phase of Kabalega International Airport, providing critical logistics infrastructure to support oil and gas development, tourism, trade and investment in the Albertine region.

v) Through the Uganda National Oil Company (UNOC), Government continued the bulk procurement of petroleum products. This has strengthened fuel security and ensured uninterrupted supply despite disruptions in global energy markets. Consequently, Uganda experienced minimal fuel price volatility compared to several countries in the region.

vi) In addition, Government, through UNOC, acquired a 20.15 percent stake in the Kenya Pipeline Company. This is a strategic investment to strengthen Uganda’s energy security and enhance the reliability of fuel supply. Given that over 95 percent of Uganda’s refined petroleum products are imported through the Kenyan corridor, this investment will help secure access to critical petroleum infrastructure and support more predictable fuel supply and pricing.

FY 2026/27 Priorities for Minerals, and Oil and Gas

72. Mr. Speaker, Shs 473.51 billion has been allocated for mineral-based industrial development, mining, and oil and gas. Priority areas include:

i) Continued mineral exploration, quantification and certification;

ii) Continue capitalisation of the Uganda National Mining Company;

iii) Establishment of mineral markets and buying centres;

iv) Operationalisation of EACOP; and

v) Development of the oil refinery.

SCIENCE, TECHNOLOGY AND INNOVATION

73. Rt. Hon. Speaker, no country has achieved rapid economic transformation without innovation. Science, Technology and Innovation (STI), including ICT and the creative arts, are critical drivers of productivity, industrialisation and competitiveness. They provide the tools to modernise production, create high-value jobs, and expand Uganda’s participation in the global knowledge economy. For Uganda to achieve a tenfold expansion of the economy, STI is going to be at the centre of our development strategy.

E-Mobility and Automotive Industry

74. Mr. Speaker, commissioning the Kiira vehicle plant in Jinja marked a major milestone in Uganda’s industrialisation journey and demonstrates the country’s growing technological capabilities. The plant has the capacity to produce up to 2,500 buses annually. Despite being in its early stages of operation, Kiira Motors has already made bus sales worth Shs 21.6 billion and received orders for 450 buses from Uganda and the region. The quality and reliability of its products were further demonstrated through the successful “Pearl to Cape” electric expedition, during which the Kayoola Electric Bus traversed more than 13,000 kilometres across Africa.
75. Mr. Speaker, to date, more than 25,000 electric vehicles—including buses, motorcycles and bicycles—have been produced locally, with up to 40 percent local content. In a further boost to the sector, Soleil Power completed the construction of East Africa’s first production-scale lithium-ion battery assembly plant in Uganda. This has strengthened domestic manufacturing capacity and positioned the country as a regional hub for electric mobility and clean energy technologies.

Pharmaceuticals and Biotechnology

76. Mr. Speaker, Government continued to strengthen pharmaceutical manufacturing and biotechnology as part of efforts to build a competitive pathogen economy. Uganda is deliberately supporting the domestic production of medicines, vaccines, diagnostics and other health products, while promoting research, innovation, import substitution, export growth, and resilience in the health sector.
77. Significant progress was registered through strategic investments in, and Government procurement from, local pharmaceutical and biotechnology companies, including Microhaem Scientifics, Dei BioPharma, Jena Herbals, and other emerging manufacturers.

a) Microhaem Scientifics has established itself as a leading African manufacturer of rapid diagnostic kits, recording annual sales of approximately USD 75 million from products used in the diagnosis of malaria, HIV/AIDS, and sickle cell disease.

b) Dei BioPharma has operationalised manufacturing lines for generic oral solid and liquid medicines and secured approvals from the National Drug Authority for a range of essential medicines.

c) Jena Herbals, the manufacturer of Covidex, has established a pharmaceutical manufacturing facility in Soroti, expanding Uganda’s capacity to produce health products locally and strengthening the country’s pharmaceutical value chain.

78. These investments are improving health security, reducing imports and creating high-value jobs.

Advancing Uganda’s Space Science

79. Mr. Speaker, Government has strengthened Uganda’s space science and satellite technology capabilities. Government established modern ground satellite infrastructure at the Uganda National Space Centre at Mpoma, Mukono district. This has enabled our scientists to successfully deploy a climate camera to the International Space Station. This has expanded the country’s capacity to generate real-time data for climate monitoring, environmental management, disaster preparedness, and evidence-based decision-making.

Value addition under STI

80. Mr. Speaker, Government has intensified agro-industrialisation initiatives driven by scientific innovation aimed at increasing value addition, branding and export competitiveness. The banana value addition facility by Professor Muranga strengthened its production capacity for banana value-added products and fulfilled export orders from South Korea, Saudi Arabia, Qatar and Italy.
81. In addition, Government has invested in the establishment of a coffee park in Ntungamo. The Africa Coffee Park has innovated 18 products of value-add coffee, ready to go into the market for roast, freeze-dry, and spray-dry high-level technology.

Digital Transformation

82. Mr. Speaker, Government continued expanding digital infrastructure to improve the availability, reliability, and affordability of ICT services, as well as access to the services. During the year, an additional 879 kilometres of fibre optic cable were installed, bringing the national fibre backbone to approximately 62,941 kilometres.
83. As a result, internet costs declined from USD 70 to USD 35 per megabit per second. Active mobile internet subscriptions stand at 18.5 million, while the number of smartphones connected to Ugandan networks has reached 20 million. Total registered mobile telephone subscriptions have reached 57.3 million, placing Uganda among the most connected markets in the region.
84. The increased penetration of mobile telephones has increased financial inclusion and improved access to e-commerce, telemedicine, marketing and agricultural information for farmers. In the year ending March 2026, mobile money transactions rose by 29 percent to Shs 392.7 trillion. Active mobile money accounts stood at 36.7 million. As at 31st March 2026, the number of mobile money agents had reached 1.22 million.

Creative Arts

85. Mr. Speaker, to protect intellectual property and artistic works, Government enacted the Copyright and Neighbouring Rights (Amendment) Act, 2025. Government also established the Uganda Creatives Revolving Fund to provide affordable financing to SACCOs in the creative economy. By December 2025, approximately Shs 18.99 billion had been disbursed to 50 SACCOs of musicians, benefiting 3,047 individuals, of whom 62 percent are youth and 43 percent are women. Government is also finalising the acquisition of a dedicated home for creative artists to serve as a common-user facility for young talents to create wealth and jobs.

FY 2026/27 Priorities for STI, ICT and Creatives

86. Mr. Speaker, Shs 1.140 trillion has been provided in the new Budget for Science, Technology and Innovation, ICT and the creative industries. The priorities next financial year include:

i) Commercialisation of innovations, especially Kiira Motors vehicles, coffee, Dei BioPharma drugs and vaccines, and banana products;

ii) Establishment of a Hi-Tech City;

iii) Additional investment in scientific research (R&D) and innovation;

iv) Expansion of digital infrastructure to increase coverage, reliability and affordability of internet, Government services and e-commerce;

v) Growth of Business Process Outsourcing (BPO) for job creation;

vi) Expanding the free-to-air TV signal; and

vii) Strengthening intellectual property protection.

ENABLERS

87. Mr. Speaker, Government also continued to invest in the key enablers of socio-economic transformation in line with the NDP IV and the Tenfold Growth Strategy. These include human capital development, infrastructure, security and the rule of law, as well as domestic revenue mobilisation to finance the transformation agenda.

Enabler 1: Peace, Security and Rule of Law

88. Mr. Speaker, peace, security and the rule of law are the foundations of development. Without peace, you cannot create prosperity. Without security and the rule of law, there is no investment. Without stability, there is no growth. Government has continued to invest in security, justice and governance institutions. This financial year, the following milestones have been achieved:

i) Government continued strengthening security infrastructure, intelligence systems and operational capacity while improving the welfare of our security personnel in the UPDF, Uganda Police, Prisons, and intelligence agencies.

ii) Uganda remains one of the region’s most stable countries. Despite being an election year, reported crimes fell by 10.2 percent —from 218,715 cases in 2024 to 196,405 in 2025—reducing the crime rate from 502 to 427 per 100,000 people.

iii) Uganda continued to contribute to regional peace and security through African Union and UN Peace Support Operations in Somalia, alongside military deployments in the Democratic Republic of the Congo, South Sudan, and other places.

iv) The 275-bed National Referral Military Hospital in Mbuya, Kampala, is now operational. It attends to an average of 150 patients per day for services including dialysis, dental care, physiotherapy, and ENT.

v) Construction of the UPDF Military Headquarters in Mbuya is 70 percent complete. In addition, over 230 housing units and new administrative blocks for the Air Force and Marines are under construction to enhance personnel welfare and operational efficiency.

vi) Government provided over Shs 1.697 trillion to the relevant institutions to organise the recently concluded successful general elections.

vii) Mass enrolment and issuance of National Identity Cards progressed well. The total population identified with a National Identification Number (NIN) is 34.14 million, renewals 13.85 million, cards printed 14.67 million, and cards issued to the population 6.2 million. Beyond securing elections and supporting national security, the National ID has improved access to public services, broadened financial inclusion, and eased travel within the EAC.

viii) Cattle restocking has begun in Acholi, Lango, and Teso, targeting 16,000 households—each receiving Shs 5 million to purchase two bulls and three heifers. To date, 2,001 households have been compensated.

FY 2026/27 Priorities for Security, Governance and Rule of Law

89. Mr. Speaker, Government has allocated Shs 10.21 trillion to security, governance and rule of law institutions for FY 2026/27. Priority interventions include:

i) Continued modernisation, training, and welfare of the UPDF.

ii) Full equipping of the National Referral Military Hospital, and completion of the UPDF Headquarters.

iii) Strengthening of border security, counter-terrorism, and regional Peace Support Operations.

iv) Enhancing community policing, crime intelligence, forensics, and CCTV coverage.

v) Cybersecurity and protection of critical national infrastructure.

vi) Improving immigration services, NIN/ID enrolment, and e-passport issuance.

vii) Fighting against corruption.

viii) Continued cattle restocking in the Acholi, Lango, Teso sub-regions.

Enabler 2: Infrastructure Development

90. Mr. Speaker, transport infrastructure is the “bone marrow” of the economy. It connects farmers to markets, workers to jobs, and industries to inputs, while linking exporters to regional and global markets. Electricity powers industrialisation and drives economic transformation. In FY 2025/26, Government achieved the following in infrastructure development:

Roads and bridges

i) Government continued with the construction of 24 major roads totalling approximately 1,154 kilometres, and rehabilitated a further 949 kilometres of national roads.

ii) Government continued developing fourteen strategic bridges to enhance connectivity, improve access to socio-economic services, and support the movement of goods and people within and across regions.

iii) Government stepped up maintenance of the national road network. Over 7,400 kilometres of paved and 14,000 kilometres of unpaved roads were maintained through labour-based contracts, and a further 1,282 kilometres of paved and 3,146 kilometres of unpaved roads were well looked after under routine mechanised maintenance.

iv) Government opened 124 kilometres, graded 175 kilometres, and gravelled 64 kilometres of District and Community Access Roads (DUCAR) using Force Account.

v) Local Governments maintained 2,700 kilometres of District and Community Access Roads; upgraded and maintained 820 kilometres of city and municipal roads; and rehabilitated 120 kilometres of district roads.

Development of GKMA infrastructure

i) Mr. Speaker, Government has embarked on revamping road infrastructure in Greater Kampala Metropolitan Area (GKMA). The target is to upgrade over 600 kilometres in the next 5 years and to maintain all major existing roads.

ii) To date, 297 kilometres of roads have been paved, several roads have been rehabilitated and maintained, and eight major road junctions signalled to improve traffic flow and road safety.

iii) Mr. Speaker, Kampala made history as the first city in Africa to be inducted into the international network of tree cities in the World. Government will continue building on this heritage and global recognition.

iv) In this regard, Government has prioritised implementation of a clean-up exercise involving restoration of wetlands and green spaces, enforcing integrated physical planning including pedestrian friendly roads, enforcing trade order and restrictions on all forms of pollution especially noise.

Water transport

91. Mr. Speaker, Government has constructed, maintained, and operated 15 ferries to connect island communities to markets and services. The Buyende–Kagwara–Kaberamaido (BKK) ferry has commenced operations. Two ferries on Lake Bunyonyi are under construction and are expected to begin service by June 2027. Preliminary works for the Bukasa inland port are nearly complete, paving the way for commencement of the actual construction.

Railway transport

92. Mr. Speaker, Government has commenced construction of the 273-kilometre Standard Gauge Railway (SGR) from Malaba to Kampala. Upon completion, container transport costs from Mombasa to Kampala are projected to fall from about USD 3,500 to roughly USD 1,600, and transit time from five days to one day.
93. Rehabilitation of the Tororo–Gulu Metre Gauge Railway reached 66 percent completion, while the Kampala–Mukono section has been completed.

Air transport

94. Mr. Speaker, with regard to air transport:

a) Physical works for Kabalega International Airport are complete. Government is now finalising operational requirements to get the airport ready for First Oil and AFCON 2027.

b) Construction of Kidepo International Airport is underway to boost tourism in Karamoja.

c) Phase I of Entebbe International Airport’s rehabilitation and expansion is complete, with a new passenger terminal and expanded cargo facility. The passenger terminal capacity has risen from 2.0 million to 3.5 million travellers per year.

d) Twelve regional aerodromes have been maintained to support regional connectivity for tourism and trade.

e) Government is strengthening Uganda Airlines as critical transport infrastructure to enhance international connectivity for tourism, trade, investment, and the diaspora. In order to enhance operational efficiency, expand and modernise the fleet, Government is further capitalising the airline by acquiring eight additional new passenger aircraft.

FY 2026/27 Priorities for Transport

95. Mr. Speaker, Shs 8.79 trillion has been allocated next financial year for transport infrastructure development. Priority areas will include:

i) Construction of the Malaba–Kampala Standard Gauge Railway and completion of rehabilitation of the Metre Gauge Railway;

ii) Construction, upgrade and maintenance of national, city, district, urban, and community access roads;

iii) Construction and maintenance of strategic bridges;

iv) Development of water transport systems such as ferries and ports;

v) Operationalisation of Kabalega International Airport, and continued upgrade of regional aerodromes; and

vi) Expansion of Uganda Airlines.

Energy Development

96. Mr. Speaker, reliable and affordable energy is essential for industrialisation and socio-economic transformation. Government continues to invest heavily in electricity generation, transmission, and distribution infrastructure. In FY 2025/26, Government achieved the following in energy development:

a) Continued development of hydro, solar, and other energy projects, alongside preparatory work for future nuclear investments. Installed generation capacity now stands at 2,098 megawatts, and Government’s medium- to long-term target is 52,482 megawatts to support industrialisation, urbanisation and economic growth.

b) Continued expansion of energy transmission and distribution infrastructure. Completed and continued construction of multiple lines, including the Kole–Gulu–Nebbi–Arua line, 132 kV; the Kampala Metropolitan transmission line, 132 kV, including two associated mobile substations; Mirama–Kabale, 132 kV; Karuma–Tororo, 400kV; Tororo–Lessos, 400 kV; Mutundwe–Entebbe, 132 kV; and Lira–Gulu–Agago, 132 kV. Good progress has also been made on substations serving industrial parks in Mbale, Kapeeka, and the Kabalega Petrochemical Industrial Park.

c) The share of households in rural areas connected to grid electricity has nearly doubled in the three years from 6.8 percent in FY 2021/22 to 11.4 percent in FY 2024/25.

d) Through Uganda Energy Credit Capitalisation Company, Government commenced construction of four small mini hydro power sites expected to generate 5 megawatts of electricity. These sites will be completed in March 2027 and will provide reliable power to very hard-to-reach and remote areas. Further, under the Electricity Access Scale-up Project, 419,592 off-grid solar connections have been made countrywide.

FY 2026/27 Priorities for Energy

97. Mr. Speaker, Government has allocated Shs 2.07 trillion to energy development. Priority interventions include:

i) Expansion of generation capacity by commencing the 380-megawatt Kiba hydro-electricity plant, a floating solar plant at Isimba, and 500 megawatts of utility-scale solar in the Elgon and Acholi regions;

ii) Preparatory work for nuclear energy generation at Buyende;

iii) Expansion of transmission and associated substation infrastructure;

iv) Rural electrification; and

v) Industrial power connections.

Enabler 3: Investing in People

98. Mr. Speaker, economic transformation is ultimately about people. A healthy, educated, skilled and productive population is indispensable for sustained growth and shared prosperity. That is why Government continues to allocate the largest share of the discretionary budget to human capital development—health, education, water and sanitation, and social protection. During FY 2025/26, the following milestones were achieved:

Health

99. Mr. Speaker, Government sustained its policy of progressively increasing investment in essential medicines and health supplies. Accordingly, funding through the National Medical Stores was increased by Shs 145.33 billion to Shs 862.93 billion in FY 2025/26. Government will continue to increase domestic financing for essential health commodities with the aim of substantially reducing reliance on donor support. This will guarantee uninterrupted access to essential medicines like antiretroviral medicines, anti-malarial drugs, vaccines and immunisation supplies, laboratory commodities, and anti-tuberculosis medicines.
100. Government continued to modernise healthcare infrastructure and equipment. During the year, 17 Regional Referral Hospitals and 25 General Hospitals were equipped with Neonatal Intensive Care Units. In addition, 14 Regional Referral Hospitals received CT scan machines.
101. Construction and upgrading of 31 health facilities across Karamoja is ongoing. Government also completed high-capacity medical waste incinerators in Fort Portal, Gulu, Mbarara, KCCA and Lira. Busolwe, Gombe and Kawolo Hospitals were also rehabilitated.
102. Rt. Hon. Speaker, Government continued to promote preventive healthcare through immunisation, disease prevention and nutrition programmes. Immunisation coverage for children under one year reached 94 percent, while first-dose measles-rubella coverage reached 93 percent. Government also conducted nationwide campaigns against malaria, HIV/AIDS, Ebola, cholera and yellow fever, and promoted nutrition education for children, pregnant women, the elderly and other vulnerable groups.
103. Government also continued to expand specialised healthcare services in oncology, cardiology and other fields, reducing the need for treatment abroad. The Uganda Heart Institute conducted 634 cardiac interventions, including open-heart, closed-heart, vascular and catheterisation procedures. In April 2026, the Uganda Cancer Institute successfully performed the country’s first bone marrow transplant.
104. Mr. Speaker, specialised healthcare services will be further strengthened by ongoing investments. The 250-bed capacity Cardiac Hospital in Naguru, Kampala, is 44 percent complete and expected to be completed by June 2027. The International Specialised Hospital of Uganda at Lubowa is 75 percent complete and will be completed in December 2027.
105. The first phase of the Nuclear Medicine (PET) Centre for cancer treatment is 95 percent complete with radiotherapy and advanced molecular imaging services. Phase II of the PET Centre is 10 percent complete. Regional cancer centres in Mbarara, Arua and Mbale are under construction, while the Gulu centre is fully operational.
106. Other achievements in the health sector include:

a) Expansion of the National e-Health Digital Infrastructure to support telemedicine, health information management, medicine tracking, and monitoring of health worker performance.

b) Strengthening the National Ambulance and Emergency Care System through the deployment of additional ambulances.

FY 2026/27 Priorities for Health

107. Mr. Speaker, Government has allocated Shs 5.23 trillion to the health sector in FY 2026/27. The funding will focus on:

i) Maternal and child health;

ii) Nutrition improvement;

iii) Expanded immunisation;

iv) Prevention and treatment of non-communicable diseases;

v) Provision of essential medicines;

vi) Strengthening specialised healthcare services;

vii) Improving emergency response systems; and

viii) Exploring feasible pathways towards Universal Health Coverage.

Water and sanitation

108. Mr. Speaker, access to clean and safe water remains fundamental to public health, human dignity and economic productivity. Government has, therefore, continued investing heavily in water supply and sanitation infrastructure across the country.
109. Access to improved water sources continues to expand, with 71 percent of households now having access. Coverage stands at 68 percent in rural areas and 74.5 percent in urban areas.
110. Mr. Speaker, during FY 2025/26, safe water access was extended to 553 villages. Over 200 large solar-powered water and sanitation systems, several public sanitation facilities and faecal sludge treatment plants were completed in several districts. In addition, a number of urban water systems were expanded.
111. Government has allocated Shs 1.013 trillion in FY 2026/27 to further expand access to safe water and sanitation services across the country. The objective is to ensure universal access to safe water and sanitation services.

Education, Skills and Sports

112. Mr. Speaker, education remains the most powerful instrument for social mobility and long-term economic transformation. During FY 2025/26, the following milestones have been achieved in the education sector:

a) In order to expand access to education, Government continued financing Universal Primary Education (UPE) and Universal Secondary Education (USE). Approximately 9.52 million learners benefited from UPE, while about 995,116 learners benefited from USE and Universal Post O-Level Education and Training.

b) Government completed construction of 90 additional seed secondary schools, expanded 54 existing secondary schools, and operationalised 259 seed schools.

c) In preparation for AFCON 2027, Hoima Stadium has been completed, upgrades to Namboole Stadium are progressing well, and other required tournament facilities remain on schedule. Further, construction of Akii-Bua Stadium is on schedule.

d) Government has intensified investment in STEM, technical and vocational education, industry-linked skills development, and digital literacy.

FY 2026/27 Priorities for Education, Skills and Sports

113. Mr. Speaker, next financial year, Government has allocated Shs 6.66 trillion to further improve education of Ugandans. Priorities will include:

i) Expanding access to quality UPE and USE;

ii) Strengthening STEM and vocational education;

iii) Improving teacher welfare and training, with emphasis on pre-primary teachers;

iv) Curriculum reform;

v) Strengthening public universities and research institutions; and

vi) Completing critical sports infrastructure for AFCON 27.

114. Mr. Speaker, beginning FY 2026/27, an additional Shs 568.65 billion has been allocated to enhance salaries for primary school teachers and arts teachers in secondary schools and BTVET institutions.

Social Protection and Inclusive Development

115. Mr. Speaker, the NRM Government has over the years ensured economic growth is inclusive. Government continues implementing targeted programmes aimed at supporting vulnerable groups and expanding economic participation. The following are some of the achievements:

i) Government has continued to support older persons through the Social Assistance Grant for Empowerment (SAGE), which has cumulatively reached 489,673 beneficiaries with a total of Shs 836.1 billion. In addition, the Special Enterprise Grant for Older Persons (SEGOP) has supported 17,245 older persons with approximately Shs 13 billion;

ii) Under the National Special Grant for Persons with Disabilities, 72,772 beneficiaries have received Shs 48.5 billion across 171 Local Governments;

iii) The Youth Livelihood Programme has financed 24,859 projects, benefiting 275,034 youths at Shs 195.4 billion, while 57,849 youths have benefited from the Youth Venture Capital Fund;

iv) The GROW Project has extended Shs 111.1 billion in loans to 4,889 beneficiaries, while the Uganda Women Entrepreneurship Programme (UWEP) has cumulatively supported 244,805 women with Shs 153.5 billion; and

v) Government has continued to negotiate bilateral labour agreements to protect workers’ rights, promote decent work, and expand overseas employment opportunities for skilled Ugandans.

FY 2026/27 Priorities for Social Protection

116. Mr. Speaker, next financial year, Government has allocated Shs 173.55 billion for social protection, which will focus on:

i) Expanding economic empowerment programmes;

ii) Strengthening labour standards;

iii) Supporting youth employment initiatives;

iv) Promoting women’s economic participation;

v) Enhancing social protection systems; and

vi) Establishing a robust Labour Market Information System.

117. Mr. Speaker, overall, Shs 13.56 trillion has been allocated next financial year to invest directly in the people of Uganda through health, education, social protection, and water and sanitation. This investment reflects Government’s conviction that people are Uganda’s greatest asset.

Enabler 4: Industrial Development and Manufacturing

118. Mr. Speaker, nations achieve prosperity not by exporting raw materials but by transforming them into high-value products. For this reason, Government places high priority on industrial development, manufacturing, and value addition.
119. Mr. Speaker, besides Government investment in manufacturing under the ATMS already highlighted, the following milestones have been achieved this financial year:

a) Government continued investing in the development of industrial parks. The aim is to lower investors’ establishment and operating costs and drive industrial growth. As a result, the number of formal factories has cumulatively risen to 10,437, of which 690 are located within industrial parks.

b) Government continued capitalising Uganda Development Corporation (UDC) to de-risk private investment in critical sectors. UDC’s capital investments have surpassed Shs 1.5 trillion, with co-investments across key value chains including textiles (Fine Spinners), agro-processing (Biyinzika Enterprises Ltd and Bukona Agro-Processors Ltd), and pharmaceuticals (East African Medical Vitals, Sanga Vetchem Ltd and Alfasan (U) Ltd).

c) Government, through UDC, has also invested in the local construction sector. UDC invested in Abubaker Technical Services, a Ugandan firm delivering key national roads, including Busunju–Kiboga–Hoima (145 km) and Matugga–Semuto–Kapeeka (41 km), among others. UDC also invested in ETATS construction company, currently constructing the Bugiri-Namutumba road (24 km), and the Buwenge-Kaliro road (48 km), among others.

d) Government completed the Special Economic Zone at Entebbe International Airport to promote high-value exports. Several firms—particularly in fresh-produce exports and light manufacturing—are setting up operations.

e) Continued expansion of Presidential Zonal Industrial Hubs, which are tackling youth unemployment by providing practical industrial and vocational skills. To date, 82,790 youth have been trained, and the number of hubs has grown to 28 nationwide.

FY 2026/27 Priorities for Manufacturing and Industrial Development

120. Mr. Speaker, Government has allocated Shs 1.03 trillion to the manufacturing programme for FY 2026/27. Priority interventions include:

i) Additional capitalisation of UDC to drive industrial development;

ii) Industrial infrastructure development, particularly in industrial parks, including new fully serviced plug-and-play parks;

iii) Value addition to agricultural raw materials and minerals;

iv) Supporting market access for Ugandan manufactured products;

v) Strengthening the functionality of Special Economic Zones; and

vi) Industrial research, including the establishment of regional industrial incubation hubs.

Enabler 5: Markets Access for Wealth Creators

121. Mr. Speaker, wealth creators need access to both domestic and export markets. Expanding the domestic market requires higher household incomes and increased purchasing power to stimulate demand for locally produced goods and services.
122. Export growth, on the other hand, requires deeper regional integration to access larger markets within the East African Community, COMESA and the African Continental Free Trade Area (AfCFTA). These opportunities are complemented by preferential and duty-free market access arrangements negotiated with key partners, including the European Union, the United Kingdom, Russia, Serbia and countries in the Middle East.
123. To expand both domestic and export markets, Government will continue investing in standards, quality assurance, certification, and market intelligence to enhance the competitiveness of Ugandan products and services. To this end, Government has so far, implemented the following;

i) Strengthened certification services to enhance efficiency. Additional personnel have been recruited and trained to increase capacity of the Uganda National Bureau of Standards (UNBS) to undertake certification, surveillance and enforcement of standards. Following automation, the turnaround time for imports inspection reduced from three weeks to four hours. Product testing reduced from 30 days to 14 days. And product certification reduced from 180 days to 45 days.

ii) Decentralised and modernised certification services to enhance access. Construction and equipping of engineering testing laboratories is ongoing and expected to be completed by September 2026. Government also commenced construction of regional laboratories in Mbale, Gulu, and Mbarara.

iii) Developed 450 standards for products and services and issued permits to 4,500 products.

iv) Trained 750 micro, small and medium enterprises (MSMEs) in value addition and processing, and certified 750 products.

v) Completed construction and equipping of an internationally accredited National Metrology Laboratory at Uganda National Bureau of Standards. The laboratory is being used to calibrate equipment used in the National Food Safety Laboratory and other agro-food processing laboratories and industries.

vi) Commenced operations of the petroleum laboratory in January 2026. Over 40 product samples of petroleum products have since been tested.

124. Mr. Speaker, priority interventions for FY 2026/27 include:

i) Development of quality assurance infrastructure under the euro 163.56 million Enhancing Agricultural Production, Quality and Standards for Market Access Project;

ii) Strengthening the capacity for development of standards and certification of products and services;

iii) Completing construction and equipping of the engineering laboratory and continuing construction of regional laboratories; and

iv) Accrediting private laboratories to increase access.

Enabler 6: Environmental Protection and Disaster Management

125. Mr. Speaker, sustainable management and use of natural resources, land, water and the environment, as well as effective response to climate change are essential for boosting productivity and value addition.
126. To cushion Ugandans and our economy from climate shocks, Government invested Shs 9.6 billion this financial year in early warning systems, hazard mitigation, and emergency relief items for affected households. Government also invested heavily in water for production facilities to protect our farmers during droughts.
127. Mr. Speaker, in order to protect and restore wetlands, Government undertook the demarcation of 104 kilometres of wetland boundaries, and restored 15,000 hectares of degraded wetlands. A total of 8,319 hectares of degraded Central Forest Reserves were demarcated, alongside 404 kilometres of forest boundaries to enhance the protection and management of forest resources.
128. Mr. Speaker, to safeguard our environment and adapt to climate change, Government has allocated Shs 494.08 billion next financial year. These funds will protect 1.26 million hectares of forest reserves and wetlands; restore 10,000 hectares of degraded wetlands; and demarcate critical riverbanks and lakeshores—particularly along the Nile. We will also upgrade meteorological services and early-warning systems to deliver accurate forecasts for agriculture, aviation, and climate monitoring.
129. In addition, Shs 361.88 billion has been allocated to the Contingency Fund to strengthen our national disaster response next financial year.

Administration of Justice

130. Mr. Speaker, under the Administration of Justice programme, the following achievements were recorded:

i) Expanded access to justice with the proportion of districts having complete justice service points rising from 79 percent in FY 2020/21 to 89 percent. This was achieved by operationalising new High Court Circuits now at 29, and establishing 10 additional Magistrates’ Courts, now totalling 268, including in island communities.

ii) Decentralisation of the Court of Appeal is underway in Mbarara and Gulu to improve regional access to appellate justice.

iii) Judicial capacity has been strengthened with the appointment of additional Justices of the Court of Appeal (now 20) and High Court (now 88), along with more Magistrates, to reduce case backlog and serve high-demand areas.

iv) Resolution of commercial disputes has improved: between 2023 and 2025, the Judiciary disposed of 38,102 commercial and land cases worth Shs 14.47 trillion, unlocking capital and boosting economic activity and investment.

v) Promotion of Alternative Dispute Resolution has been scaled up, resolving over 8,000 cases in FY 2025/26, alongside nearly 25,000 small-claims matters worth Shs 19.5 billion.

vi) Mobile courts have been deployed to hard-to-reach and refugee-hosting areas, bringing hearings into communities to accelerate case resolution and improve access to justice.

FY 2026/27 Priorities for Administration of Justice

131. Mr. Speaker, Shs 665.55 billion has been allocated under this programme for FY 2026/27 to:

i) Expand access to justice and further decentralise appellate services;

ii) Recruit and deploy judicial officers;

iii) Reduce case backlog through Alternative Dispute Resolution and mobile courts;

iv) Digitise courts, case management, and e-filing;

v) Strengthen prosecution, forensic services, and anti-corruption efforts; and

vi) Upgrade court infrastructure and circuit operations.

Legislation and Oversight

132. Mr. Speaker, during FY 2025/26, the 11th Parliament held 34 sittings, passed 18 Bills, concluded 1 petition, passed 29 resolutions, and adopted 22 reports. Most importantly, the turnaround time for enacting legislation has reduced significantly.
133. Next financial year, Government has allocated Shs 1.23 trillion to enable Parliament to fulfil its constitutional mandates of legislation, appropriation, oversight, and effective representation.

E. KEY IMPLEMENTATION REFORMS

134. Mr. Speaker, achieving tenfold growth requires more than investment. It requires discipline. It requires accountability. It requires efficiency. And it requires integrity. Government will, therefore, undertake a comprehensive implementation reform agenda aimed at eliminating waste, corruption, delays and inefficiency.
135. In this regard, Government is implementing a ‘clean-up’. This means enforcement of the laws and regulations to ensure institutional effectiveness, leading to improved service delivery and public trust. The specific priorities in the ‘clean-up’ include:

i) Enforcement of budget discipline and accountability. In FY 2026/27 going forward, as part of the performance contracts, all Accounting Officers will sign a budget discipline and accountability charter which provides for sanctions against breaches of accountability rules in planning, budgeting and execution of public resources.

ii) Combatting corruption through procurement reforms, digitisation, strengthening internal controls and audits, and ensuring transparency to facilitate accountability.

iii) Continued enforcement of trade order and traffic discipline to promote safe, orderly and livable cities and urban centres, and improve the safety of public transport.

iv) Strengthening governance, oversight and performance of state-owned enterprises.

v) Strengthening allocative efficiency by prioritising high-impact investments under the ATMS and their enablers, while eliminating wasteful expenditure. To this end, as guided by His Excellency the President, state-funded celebrations on public holidays will be suspended except functions on religious holidays. Going forward, public holidays will be observed without official ceremonies.

vi) Centralising the management of counterpart funding under the Treasury to safeguard funding for priority projects.

vii) Implement the contributory public service pension fund to attain fiscal sustainability in the management of pension liabilities for Government workers.

F. FINANCING THE BUDGET FOR FINANCIAL YEAR 2026/27

The Financing Strategy for FY 2026/27

136. Mr. Speaker, the financing strategy for FY 2026/27 seeks to create additional fiscal space to finance Government priorities while maintaining debt sustainability. This will be achieved through:

i) Strengthening tax administration and compliance;

ii) Introducing targeted tax policy measures to increase domestic revenue;

iii) Mobilising concessional financing from development partners and international financial institutions; and

iv) Expanding alternative sources of financing, including Public-Private Partnerships, venture capital, innovative instruments such as SUKUK, and listing of commercially viable public enterprises on the stock exchange.

Resource Envelope

137. Rt. Hon. Speaker, the total resource envelope for FY 2026/27 is Eighty-Four Trillion, Three Hundred and Ninety-One Billion, Seven Hundred and Forty-Three Million, Three Hundred and Forty-Three Thousand, Four Hundred and Twenty-Six Shillings (Shs 84,391,743,343,426/=). This is detailed as follows:

i) Domestic revenues Shs 45.96 trillion, of which Shs 40.16 trillion is tax revenue, Shs 4.02 trillion is non-tax revenue, Shs 1.44 trillion is petroleum revenue and Shs 339.8 billion is Local Government revenue;

ii) Domestic borrowing, Shs 11.97 trillion;

iii) Domestic debt refinancing, Shs 13.97 trillion;

iv) External borrowing for general budget financing, Shs 1.22 trillion; and

v) External financing for projects, Shs 11.27 trillion.

Expenditure Allocations

138. Mr. Speaker, a summary of the allocations of the above resources is as follows:

i) Wages and salaries, Shs 9.709 trillion;

ii) Non-wage recurrent expenditure, Shs 33.276 trillion, which also includes operational funds for institutions, financing for all wealth-creation funds, financing for science and technology investments, grants for education and health, medicines, maintenance of infrastructure, and interest payments, among others;

iii) Development expenditure, Shs 22.054 trillion;

iv) Domestic debt refinancing, 13.967 Shs trillion;

v) Debt amortisation, Shs 4.181 trillion;

vi) Domestic debt repayment to Bank of Uganda, Shs 547 billion;

vii) Domestic arrears, Shs 317 billion; and

viii) Local Government expenditure from own revenue, Shs 339.8 billion.

139. Mr. Speaker, details of the Resource Envelope and Expenditure Allocations by Vote for FY 2026/27 are provided in Annexes 1 and 2, respectively.
140. The Budget for FY 2026/27 totalling Shs 84.39 trillion has, therefore, increased by Shs 2.78 trillion from the revised Budget of Shs 81.61 trillion for FY 2025/26.

Tax Measures for Financial Year 2026/27

141. Mr. Speaker, let me now highlight the key tax policy measures as approved by Parliament to support domestic revenue mobilisation, investment, job creation and economic growth.

Income Tax

142. Mr. Speaker, Parliament approved the following income tax measures:

i) Extension of Income Tax Exemption for Bujagali Energy Limited until 2032 to support affordable electricity tariffs, at an estimated revenue cost of Shs115 billion per annum.

ii) Increase in the PAYE threshold from Shs 235,000 to Shs 335,000 per month to raise take-home pay for low-income workers, at an estimated revenue cost of Shs 96 billion.

iii) Introduction of a 5 percent withholding tax on payment of interest to foreign lending institutions to ensure equitable taxation of interest income.

iv) Provision for individuals to file and pay rental income tax monthly to improve voluntary compliance and reduce tax arrears.

v) 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 USD 5 million for Ugandan investors.

vi) Equalisation of tax treatment of Tier 4 financial institutions by allowing deductions for provisioning for bad debts, thereby reducing the cost of capital.

Value Added Tax

143. Mr. Speaker, Parliament approved the following VAT measures:

i) Increase in the annual VAT threshold from Shs 150 million to Shs 300 million to ease compliance for small businesses and improve tax administration efficiency. This measure is projected to generate Shs 349 billion.

ii) Extension of VAT deferment to inputs used in iron ore processing to support mineral value addition and industrialisation.

Excise Duty

144. Mr. Speaker, Parliament approved the following Excise Duty measures:

i) Increase in Excise Duty on diesel and petrol by Shs 200 per litre to generate Shs 450 billion.

ii) Increase in Excise Duties on selected products as follows:

a) Alcoholic drinks like Uganda Waragi, Black Label, Cognac, and Amarula from Shs 1,700 to Shs 3,500 per litre, to generate Shs 85 billion;

b) Motorcycles at first registration from Shs 200,000 to Shs 500,000, to generate Shs 26 billion;

c) Single-use plastics from 2.5 percent or USD 70 per tonne to 25 percent or USD 1,500 per tonne to protect the environment and raise Shs 10 billion;

d) Cooking oil from Shs 200 to Shs 400 per litre to generate Shs 25 billion;

e) Cement from Shs 500 to Shs 750 per 50-kilogram bag to generate Shs15 billion; and

f) Sugar from Shs100 to Shs 200 per kilogram to generate Shs 25 billion.

iii) Introduction of Excise Duty on selected products as follows:

a) Locally manufactured paints and varnishes at 3 percent or Shs 50 per litre or kilogram, whichever is higher and imported paints and vanishes at 10 percent or Shs2,000 per litre whichever is higher to generate Shs24 billion; and

b) Cooking fat at Shs 500 per litre or kilogram to generate Shs 15 billion.

Stamp Duty

145. Mr. Speaker, a modest stamp duty has been introduced on the first registration and transfer of motor vehicles and motorcycles as follows:

i) Motorcycle, tricycle and quadricycle – Shs 30,000; and

ii) Any other motor vehicle – Shs 200,000.

This will generate Shs 30 billion.

Tax Procedures Code Act

146. Mr. Speaker, Parliament approved the following tax relief measures:

i) Waiver of principal tax, penalty and interest owed by a taxpayer to URA as at 30th June 2016.

ii) Extension of the waiver of interest and penalties outstanding as at 30th June 2025, provided the principal tax is paid by 30th June 2027.

External Trade

147. Mr. Speaker, Parliament approved an increase in the environmental levy on imported used clothing from 15 percent to 30 percent of CIF value to support local manufacturing as well as local manufacturing, and generate Shs 40 billion.

Lotteries and Gaming

148. Mr. Speaker, Parliament approved increase of the tax for betting from 20 percent to 30 percent to harmonise taxation across gaming activities and generate Shs 24 billion.

CONCLUSION

149. Mr. Speaker, Uganda has become a land of opportunity and promise. Our economy has expanded to USD 69 billion and is projected to grow at double-digit rates, driven by strong export performance, First Oil, and sustained wealth-creation interventions. More importantly, this growth is increasingly translating into jobs, higher incomes and better livelihood for Ugandans. Investor confidence is rising, and the Ugandan diaspora is responding with increased remittances, investment and active participation in our transformation.
150. This Budget aims to accelerate the attainment of the Tenfold Growth Strategy. Government has allocated 99 percent of discretionary resources to the ATMS—Agro-industrialisation, Tourism Development, Mineral-Based Industrialisation, and Science, Technology and Innovation—and their key enablers. This Budget prioritises production, productivity, value addition, exports, and job creation. I invite the private sector to take full advantage of these opportunities to create wealth.
151. The Budget launches Uganda into the “Kisanja No More Sleep”. Every Ugandan must actively engage in wealth creation, and every leader must be accountable for transforming households and communities. The era of planning and debate is over; the era of implementation and results has begun. Our mission is clear: produce more, earn more, export more, and lift every household out of subsistence.
152. I dedicate this Budget to all wealth creators, especially the youth, whose energy, enterprise and innovation will drive Uganda’s transformation into a 500-billion-dollar economy.
153. Mr. Speaker, I beg to move.

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