The government has announced that the operationalization of five new regional cities – Kabale, Moroto, Wakiso, Nakasongola, and Entebbe – will be delayed in the upcoming financial year 2025/2026 due to financial constraints.
This decision comes despite Parliament’s approval in 2020 to elevate these municipalities to city status. The government had initially planned to operationalize 15 strategic cities in phases, but financial limitations have necessitated a delay.
The existing 10 cities – Arua, Lira, Gulu, Soroti, Hoima, Fort Portal, Mbarara, Masaka, Jinja, and Mbale – are also reportedly facing challenges due to inadequate funding.
Minister of Local Government, Raphael Magezi, emphasized that this delay does not signify cancellation but a postponement. “If the Ministry of Finance says there is no money to fund the new cities, there is little we can do but remain patient,” he stated.
Magezi further explained that the ministry is working to resolve demarcation issues to avoid future boundary conflicts. He stressed that the government’s immediate priority is to address the challenges faced by the existing cities.
“For the next five years, no new cities will be operationalized,” Magezi confirmed. He highlighted that Cabinet’s decision is based on fiscal realities and the need to address structural issues within the existing cities.
State Minister of Finance, Henry Musasizi, echoed Magezi’s sentiments, stating that resource constraints within the budget framework presented to Cabinet have necessitated the halting of some expenditures, including the creation of new cities.
“The 10 cities that were established are still underfunded and are operating within budgets designed for municipalities,” Musasizi said. “The government is prioritizing areas that build the economic base instead.”
Economist Patrick Kiconco Katabaazi emphasized the long-term benefits of urbanization. “In the short term, it may appear as an operational cost, but in the long run, it’s an essential investment for a better-organized Uganda,” he argued, calling for a comprehensive urbanization policy.
Despite these explanations, concerns have been raised by local leaders in Kabale and Wakiso regarding the demarcation process and unresolved complaints from earlier surveys.
This decision highlights the government’s ongoing efforts to balance fiscal responsibility with service delivery. However, it is likely to spark further debate in the affected districts, where residents and leaders remain eager to achieve city status.
