Magyezi Announces Shift: Government to Prioritize Funding for Larger Local Governments Rather Than Creating New Districts
By Urban Gazette Political Desk
Kampala,Uganda
The Ministry of Local Government announced a policy pivot on Friday that will reshape how central government funds are distributed across Uganda’s local administrative units. Minister Raphael Magyezi said the government will favour strengthening larger local governments and urban councils rather than approving new administrative splits — a move he argued will improve service delivery and reduce wasteful duplication of administrative costs.
Addressing delegates at the Urban Authorities Association of Uganda assembly in Tororo, Magyezi described the proliferation of new districts over the past two decades as politically motivated and fiscally unsustainable. “Creating more districts has often led to weaker services and higher administrative overheads,” he said. “We will instead concentrate resources in larger, better-resourced councils that can deliver health, education and infrastructure services more efficiently.”
Under the new direction, the ministry is expected to revise allocation formulas so that priority funding and conditional grants flow to urban councils and larger districts with demonstrable capacity to absorb resources. The Cabinet-level moratorium on new districts remains in effect, Magyezi confirmed, and an internal review is underway to assess how best to re-target existing grants and capital projects to achieve quicker developmental outcomes.
Local leaders reacted with a mixture of relief and concern. Mayors in some urban centres welcomed the potential for greater capital inflows to improve roads and waste systems. Yet political leaders in rural constituencies that have campaigned for new district status — often citing identity, proximity to services, or representation — cautioned that centralizing funds to larger units might disenfranchise smaller communities and hurt local patronage dynamics.
Experts say the proposal could bring fiscal benefits by concentrating spending on fewer administrative hubs, enabling economies of scale in procurement, staff training and infrastructure. But they also warn of governance risks: greater concentration of funds in larger councils could increase the risk of corruption or elite capture unless matched with transparency and stronger oversight.
The Ministry also indicated plans to review local government remuneration and strengthen capacity building for council staff so that newly prioritized funds translate into concrete projects. Donor partners and development agencies working in local government programming will be engaged to align support with the ministry’s new emphasis.
Why it matters:
Service delivery: A shift in funding focus could accelerate infrastructure and service investments where implementation capacity exists.
Political effects: Communities seeking new district status may find their expectations altered, changing local political strategies ahead of national polls.
Budget priorities: The redistribution will require changes to the Finance Ministry’s grant formula and monitoring mechanisms.
What to watch:
Publication of a new allocation formula or circular from the Ministry of Finance.
Reactions and petitions from MPs and local leaders in areas hoping for district status.
Donor alignment and conditionalities tied to the ministry’s new priority areas.
