Entebbe, Wakiso, Kabale, Nakasongola and Moroto districts will become cities commencing July 1, 2025.
The revelation was made by Matia Kasaija, the Minister of Finance, Planning and Economic Development while presenting the Budget Strategy for FY 2025/2026 themed ‘Full Monetization of Uganda’s Economy through Commercial Agriculture, Industrialization, Expanding and Broadening Services, Digital Transformation and Market Access’ at Speke Resort and Convention Center – Munyonyo.
Kasaija said that the Cabinet and Parliament approved the creation of fifteen cities to be operationalized in a phased manner. In FY 2020/21, ten cities were operationalized, namely: Soroti, Lira, Gulu, Arua, Hoima, Fort Portal, Mbarara, Masaka, Jinja and Mbale.
“I have the honor, now, to announce that we have secured resources to operationalize the remaining cities and, effective July 1, 2025, the following Municipal Councils will obtain ‘City Status’: Moroto, Kabale, Entebbe, and Nakasongola. Wakiso District will also obtain city status” Kasaija announced.
Kasaija implored upon the affected municipalities and now, cities, to be: that as they start the Budgeting process for FY 2025/2026 to beware that there are Lower Local Governments that will be annexed to the cities.
“…. prioritize and allocate funds for preparatory activities such as physical planning, surveying, and mapping of the gazetted areas of jurisdiction, and avoid conflict with the neighboring Lower Local Governments,” Kasaija urged.
Highlighting on other economic issues, Kasaija said that the first year of the implementation of the 4th National Development Plan (NDP IV) will be anchored on four key growth areas underpinned by the goal of full monetization and formalization of the economy: Agro-Industrialization, Tourism Development, Mineral-based Industrial Development including Oil and Gas, and Science, Technology and Innovation including ICT (the Knowledge Economy) (ATMS).
He noted that in the last quarter of FY 2023/24, GDP growth was recorded at 6.7% and at the end of the FY, it grew at 6% up from an average of 4.1% for the period FY 2019/20 to FY 2022/23 adding that the size of the economy has increased from Shs183 trillion ($48.8 billion) registered in FY 2022/23 to about Shs202.13 trillion ($53.2 billion) in FY 2023/24.
At the same event, Ramathan Ggoobi, Secretary to the Treasury said that Uganda is on track to change the structure of the economy from a subsistence economy to modern industrialized society.
“We want to facilitate: Technology-led productivity growth; Rapid capital accumulation-physical, financial and human capital; Linkages between agriculture and non-agriculture sectors as well as Markets and competitiveness,” Ggoobi said.
He also said Gov’t is ready to facilitate a job-rich growth profile; one that ensures enhanced household incomes and productivity growth within sectors as well as between sectors, leading to structural change.
“Therefore, we want to see a reduction in the rural population; a reduction in informality; sustained demographic transition with continued reduction in both the death rate and birth rates and increased access to electricity,” said the PSST.
Prime Minister Robinah Nabbanja while officially opening the National Budget Conference for FY 2025/26 on behalf of President Kaguta Museveni said the theme of the budget is consistent with the vision of NRM of increasing household incomes and improving people’s standards of living to achieve social-economic transformation of Uganda.
“Starting FY 2025/26 and over the medium term, the NRM government is committed to build and expand the size of our economy from the current GDP of $50 billion to $500 billion by 2040,” Nabanja.
She reassured all stakeholders that Uganda’s economy has fully recovered from both domestic and external shocks that previously hampered growth over the past three financial years and is now on the right growth trajectory.
“FY 2025/26 comes at the time when the government is committed to lift and grow the economy in a low middle-income status guided by the tenfold growth strategy, the fourth national development plan and the NRM Manifesto,” she said.
