Government Begins Process to Reshape Workforce Under Shs959 Billion Cost-Cutting Plan

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6 Min Read

Daniel Mugula

3/11/2026

The government is undertaking an assessment of employees affected by the rationalisation of government agencies, commissions and authorities, as it moves to implement reforms expected to save approximately Shs959.2 billion annually in public expenditure.

The assessment will determine the suitability of affected workers for redeployment within government, further training or retirement, depending on their academic qualifications, professional competencies and available positions in the public service.

Speaking to journalists on Tuesday at the Uganda Media Centre, the Minister for ICT and National Guidance, Justine Kasule Lumumba, said the government had so far completed staff validation in approximately 58 out of the 67 agencies and authorities affected by the exercise.

She said the remaining validation exercises are expected to be completed within the next three months, with the Public Service Commission working alongside the Ministry of Public Service to oversee the process.

Lumumba explained that employees found suitable for available positions would be considered for placement in the public service, while those requiring additional skills would be recommended for further training. Workers who cannot be absorbed into the available positions will be released in accordance with the law and paid their entitled retirement benefits.

Justine Kasule Lumumba

The staff assessment is part of the Rationalisation of Government Agencies and Public Expenditure (RAPEX) programme, which seeks to reduce duplication of government functions, streamline public expenditure and improve efficiency in service delivery.

According to the government, the programme is expected to generate annual savings of Shs959,232,139,957 from wage and non-wage expenditure through the rationalisation of 69 government agencies and functions.

The government says the savings will remain in the national Treasury and be allocated to various ministries and government activities to strengthen public institutions, improve working conditions and enhance service delivery.

Cabinet approved the recommendations for the rationalisation of government agencies, commissions, authorities and public expenditure on February 22, 2021, under Minute Extract 43 CT 2021, following a Cabinet memorandum identified as CT 2018.

A total of 157 government agencies were reviewed, with Cabinet resolving that 60 should have their functions merged, mainstreamed or transferred, while 97 would be retained. Among the institutions affected are the Tax Appeals Tribunal and the Electricity Disputes Tribunal.

The reforms are intended to create leaner government structures, eliminate overlapping mandates, harmonise salaries and reduce expenditure on government boards, staff wages, allowances, benefits, insurance coverage and contract gratuities.

Other objectives include reviewing service delivery processes to reduce the cost of doing business, undertaking job evaluations to establish a harmonised salary structure, and improving reporting relationships and information-sharing mechanisms across government institutions.

The implementation of RAPEX has been divided into two phases. The first phase, covering 2021 to 2022, focused on reviewing, designing and approving new structures to support the reforms.

The second phase, initially scheduled for 2023 to 2025, involved reviewing the legal framework and operationalising the approved structures. However, the implementation roadmap has since been extended to June 2027.

Under the second phase, 41 Bills were drafted to provide the legal framework for implementing the reforms. Of these, 37 have been passed by Parliament, while four are still awaiting legislative consideration.

Among the major changes is the planned consolidation of agencies operating under the Ministry of Energy and Mineral Development, particularly those responsible for electricity generation, transmission and distribution, into one entity.

Cabinet has directed that the merger process be expedited while ensuring that electricity services are not disrupted during the transition.

The National Information Technology Authority-Uganda (NITA-U), which operates under the Ministry of ICT and National Guidance, has also been given a three-year transition period, with its integration into the ministry expected to be completed by 2027.

Ministries expected to take over the functions of affected agencies have been directed to prepare transition plans detailing how the institutions will be integrated while maintaining and improving services to the public.

They are also required to submit quarterly progress reports to Cabinet outlining their preparedness and progress in implementing the reforms.

The government maintains that the rationalisation exercise will be conducted within the existing legal framework, with decisions regarding affected employees guided by established public service procedures.

Through RAPEX, government aims to ensure that public resources are used more efficiently by reducing administrative costs, clarifying institutional responsibilities and redirecting savings towards priority areas.

The broader objective is to establish a leaner, more efficient and responsive public service while improving the delivery of essential services to Ugandans.

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