How the 2025/26 budget will impact our lives

By Martin Luther Oketch

The 2025/26 budget, unveiled by Finance Minister Matia Kasaija at Kololo Independence Grounds on June 12, places strong emphasis on health, education, and social protection, key areas that directly influence the quality of life for citizens. With significant allocations to these sectors, the budget seeks to build on past progress while tackling persistent challenges.

1. Health sector

Uganda has made notable strides in healthcare, with life expectancy rising to 68.2 years in FY 2023/24, up from 63.3 years in 2010/11. This improvement is attributed to expanded healthcare access, successful immunisation campaigns, and reduced child mortality rates. Today, 91 percent of Ugandans live within a 5km radius of a health facility, a significant increase from 80 percent in 2010/11. To sustain and accelerate these gains, the government has allocated Shs5.87t to the health sector in the 2025/26 budget. Key priorities include strengthening primary healthcare services, scaling up the national e-Health infrastructure to improve digital health services, and enhancing nutrition and reproductive health programmes. Additionally, funds will support the deployment of community health workers, the expansion of emergency ambulance services, and the construction of specialised facilities for cancer and cardiovascular care. These investments aim to ensure that more Ugandans have access to quality, affordable healthcare.

2. Education

The education sector has seen remarkable growth in enrolment, with 9.52 million children benefiting from Universal Primary Education (UPE) and 995,116 students enrolled under Universal Secondary Education (USE) and post-O-Level training programmes. Government initiatives such as the Higher Education Students’ Loan Scheme have also supported 5,192 university and diploma students, while an additional 4,000 learners secured sponsorships for public universities. Infrastructure development remains a priority, with 166 seed schools already built under the UgIFT programme, and plans to construct 116 more in the coming year. However, despite these achievements, concerns persist over the quality of education.

To address this, the government has established the Uganda National Institute for Teacher Education (UNITE), which has already enrolled 1,000 students across five campuses to upgrade teacher qualifications. A Shs5.04t allocation in the new budget will further support education through the rehabilitation of 120 secondary schools, the expansion of 61 existing schools, and the recruitment of more teachers. Other measures include stricter digital inspections of schools, improved textbook distribution (targeting a ratio of one book per three learners, down from the current 1:15), and the completion of Bunyoro and Busoga universities.

3. Sports

In preparation for the 2027 Africa Cup of Nations (AFCON) and the African Nations Championship (CHAN), the government has invested heavily in sports infrastructure. So far, Shs496.8b has been spent on constructing Hoima and Akii Bua stadia, along with training facilities nationwide. An additional Shs1.34t has been set aside to complete these projects. Mandela National Stadium has already undergone upgrades, and the new Teryet High-Altitude Training Centre in Kapchorwa is now operational. These developments are expected to boost Uganda’s sports industry, create jobs, and enhance the country’s profile as a host for major international events.

4. Social protection

Recognising The budget allocates significant funding to social safety net programmes targeting vulnerable groups: Elderly: Shs811b for the Social Assistance Grants for the Elderly (SAGE) supporting 495,720 older persons, and Shs5.5b for the Special Enterprise Grant for Older Persons (SEGOP) aiding 11,644 individuals in group enterprises. Youth: Shs191.336b disbursed through the Youth Livelihood Programme (YLP) to fund 24,228 youth-led businesses. Women: The Uganda Women Entrepreneurship Programme (UWEP) supported 235,114 women with group enterprise financing. Persons with Disabilities: Shs404.9b allocated to the National Special Grant for Persons with Disabilities (NSGPWD), benefiting 59,901 individuals.

5. Technology and innovation

The government has earmarked Shs835.98b for science, technology, and innovation (STI), including ICT and the creative arts sector. Key projects under this allocation include the establishment of a Hi-Tech City to nurture local innovations, the commercialisation of Ugandan-made products such as Kiira electric vehicles, coffee, pharmaceuticals, and banana-based goods, and increased investment in research and development. The ICT sector will see expanded internet coverage, enhanced e-government services, and support for business process outsourcing (BPO) to create jobs. 

Meanwhile, the creative arts industry will receive Shs66b, including a Shs18b boost to a revolving fund for artistes, bringing the total to Shs23b. These investments are expected to spur innovation, create employment, and position Uganda as a competitive player in the digital economy.