President Museveni has urged Members of Parliament (MPs) to support the consolidation of over 30 government agencies, asserting that the merger could result in a significant annual cost reduction of at least Shs1 trillion for Uganda. The call comes after a unanimous resolution by the ruling National Resistance Movement (NRM) party caucus to support the rationalization of government agencies and public expenditure.
Addressing the NRM caucus at State House Entebbe, President Museveni stressed that the government’s focus should be on supporting wealth creators, highlighting the importance of commercial farmers, manufacturers, service providers, and the ICT sector in the country’s development. He pledged government support to ensure that these sectors have the necessary resources, infrastructure, and technical assistance.
The President emphasized the need for strategic decision-making, urging MPs to prioritize wealth creation by sensitizing the public on embracing key sectors of the economy. The proposed rationalization plan involves relocating 33 agencies to their mother ministries, consolidating and merging 35 agencies into 19 entities, while 80 agencies will remain semi-autonomous.
To implement the rationalization process, compensation of approximately Shs80 billion is estimated for about 2,000 employees whose jobs will be affected. Information Minister Dr. Chris Baryomunsi revealed that a bill on the rationalization of government agencies is in the final stages of preparation and will soon be presented to Parliament.
Since 2021, the government has contemplated rationalization plans, but limited resources and other factors have delayed the implementation of the idea.
