KAMPALA, Uganda — Uganda is planning to merge, absorb or transfer the functions of 60 government agencies as part of a major public sector restructuring programme aimed at cutting expenditure, eliminating duplication and improving service delivery.
Minister of ICT and National Guidance Justine Kasule Lumumba announced the figures on Tuesday, November 3, 2026, during a media briefing at the Uganda Media Centre in Kampala.
Lumumba said the government had reviewed 157 agencies under the Rationalisation of Government Agencies and Public Expenditure (RAPEX) programme. Of these, 60 have been earmarked for restructuring, while 97 will retain their independent status.
The exercise is expected to reduce the number of government institutions operating separately by transferring some responsibilities to parent ministries or consolidating functions currently performed by different public bodies.
The affected institutions include commissions, regulatory authorities, government-owned companies and other public agencies.
The government says the reforms are intended to eliminate overlapping mandates, reduce administrative costs and ensure public resources are used more efficiently.
Five agencies earmarked for absorption into ministries
Details presented by the Ministry of Public Service to Parliament in March 2026 identified five institutions for mainstreaming into the public service.
They are the Non-Performing Assets Recovery Trust, Non-Performing Assets Recovery Tribunal, Departed Asians’ Property Custodian Board, Privatisation Unit and National Information Technology Authority-Uganda (NITA-U).
The Non-Performing Assets Recovery Trust and the Non-Performing Assets Recovery Tribunal were established to support the recovery of assets associated with non-performing loans. Their responsibilities are expected to be transferred into the relevant government structures.
The Departed Asians’ Property Custodian Board, which manages properties left behind by Asians expelled from Uganda in 1972, is also earmarked for mainstreaming.
The Privatisation Unit, which supports the government’s privatisation programme, is similarly expected to lose its separate institutional status, with its functions transferred to the relevant government structures.
NITA-U, which coordinates and promotes the use of information technology across government, is also on the list. Its responsibilities are expected to be integrated into the mainstream public service, with its functions transferred to the Ministry of ICT and National Guidance and other relevant institutions.
Parliament previously approved an amendment providing for NITA-U’s mainstreaming after a three-year transition period to allow the authority to continue implementing major digital infrastructure projects.
Seven institutions identified for merger
The Ministry of Public Service also identified seven institutions for merger, including three state-owned companies responsible for different parts of Uganda’s electricity supply chain.
The proposed mergers involve the Uganda Human Rights Commission (UHRC), Equal Opportunities Commission (EOC), Uganda Law Reform Commission, Electricity Appeals Tribunal, Uganda Electricity Generation Company Limited (UEGCL), Uganda Electricity Transmission Company Limited (UETCL) and Uganda Electricity Distribution Company Limited (UEDCL).
The Uganda Human Rights Commission (UHRC) is constitutionally mandated to promote and protect human rights, while the Equal Opportunities Commission addresses discrimination and promotes equal opportunities.
Earlier government proposals indicated that the functions of the Equal Opportunities Commission would be incorporated into the Uganda Human Rights Commission. (UHRC)
The Uganda Law Reform Commission, which reviews existing laws and recommends legal reforms, is also among the institutions earmarked for restructuring.
The proposed changes involving the three commissions have a constitutional dimension. Parliament reported in March that the Constitution (Amendment) Bill, 2024, which affects their rationalisation, had been withdrawn and would need to be resubmitted. This means their proposed restructuring remains subject to the required legislative process.
The electricity sector is also expected to undergo consolidation.
UEGCL is responsible for electricity generation, UETCL handles transmission, while UEDCL is responsible for distribution.
Bringing the three companies under a consolidated structure is intended to streamline the management of electricity operations and reduce administrative duplication.
However, the proposed changes should not be interpreted to mean that the three companies have already been merged or that their operational responsibilities have been abolished.
Government targets Shs959 billion in annual savings
The restructuring is part of the government’s broader effort to reduce the cost of running public institutions.
According to the latest figures presented during Lumumba’s briefing, the reforms are projected to generate approximately Shs959 billion in annual savings from wage and non-wage expenditure.
The government has also revised the implementation roadmap, setting June 2027 as the new target for completing the exercise.
Parliament has so far passed 37 of the 41 Bills prepared to implement the reforms, while four remain pending, according to the November 3 briefing.
The Ministry of Public Service reported in March that the government had already saved Shs773.3 billion through earlier phases of agency rationalisation, including reductions in wage and non-wage bills, National Social Security Fund contributions, gratuity and board expenses.
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However, the implementation has also attracted scrutiny over the handling of employees affected by the changes.
In February 2026, Daily Monitor reported that the Auditor General had questioned the payment of Shs46.8 billion in terminal benefits to 1,389 employees who had been absorbed into other government institutions.
The Auditor General’s position, as reported by the newspaper, was that employees transferred into successor institutions should generally have been treated as continuing in government service rather than paid terminal benefits. The findings have raised questions about the costs and management of the transition.
97 government agencies to retain independent status
Despite the scale of the proposed changes, the government does not intend to abolish all the agencies reviewed.
Lumumba said 97 of the 157 institutions assessed under RAPEX would retain their independent status and continue operating as separate entities.
The distinction means that some agencies will undergo mainstreaming or merger, while others will remain institutionally separate.
The government has maintained that the restructuring is intended to improve coordination, eliminate overlapping responsibilities and redirect resources towards service delivery.
The effectiveness of the exercise will ultimately depend on how the transferred functions are managed, whether the projected savings are realised and whether ministries have the capacity to take on additional responsibilities without disrupting public services.
