Govt to Save Shs906bn Annually from Agency Mergers, Says Minister Muruli Mukasa

The restructuring will incur a one-time cost of Shs 229.595 billion to cover pensions, gratuities, and severance packages for affected staff, with Shs196.744 billion allocated to the Uganda National Roads Authority (UNRA).
The Ugandan government plans to save Shs906.77 billion annually by merging and restructuring its agencies, as announced by Wilson Muruli Mukasa, the Minister of Public Service.
Speaking during Manifesto Week at the Office of the President Auditorium in Kampala, Mukasa emphasized that the move is a significant achievement under the NRM Manifesto 2021-2026.
The restructuring will incur a one-time cost of Shs 229.595 billion to cover pensions, gratuities, and severance packages for affected staff, with Shs196.744 billion allocated to the Uganda National Roads Authority (UNRA).
The aim is to eliminate duplication, reduce unnecessary costs, and improve efficiency within government agencies.
Additionally, Mukasa noted that the government is enhancing salaries for civil servants to boost morale and discipline.
Since FY 2017/2018, 125,276 public officers have received salary enhancements, and by July 2024, Shs2.2 trillion has been allocated for these improvements.
Despite this, the majority of public officers are still earning below the long-term pay targets.
The Ministry of Public Service has submitted 40 Bills under the Rationalization of Government Agencies and Public Expenditure (RAPEX) framework, with 34 already passed and 21 assented to by the President. These legal frameworks aim to solidify the agency restructuring process.
To sustain the reforms, the government plans to fast-track salary enhancements, increase funding for the Ministry of Public Service through partnerships with the Ministry of Finance, and attract support from development partners. It also aims to implement biometric systems across government agencies to link attendance with salary payments.
Mukasa concluded that the savings from these reforms will be redirected to critical sectors such as healthcare, education, and infrastructure, ensuring measurable outcomes aligned with the government’s manifesto promises.