Why Kampala's budget needs urgent improvement

KAMPALA - Kampala, Uganda’s capital and business centre, is faced with poor infrastructure — particularly the roads, which have become an ever-present reminder of chronic underinvestment and planning gaps. 

Every day, the city’s over 1.5 million residents navigate pothole-ridden roads, enduring paralysing traffic congestion, rising vehicle repair costs and increasing accident rates exacerbated by seasonal heavy rains and poor drainage systems. 

The urgent need for a more realistic, fully-funded budget for the city is no longer just a policy debate; it is a daily reality for its citizens. 

When it rains, the patched-up potholes on major roads become pools of muddy water, obscuring hazards underneath and creating dangerous driving conditions. 

Motorists slow to a crawl, causing gridlocks that stretch for kilometres. “I spend more time in garages than on the road lately,” Isama Matovu, a ride-hailing driver who operates across Kampala’s busiest routes, said. 

“The roads in Entebbe are smooth, but once you cross into Kampala, it’s terrible. You can’t do more than two trips a day without hitting a significant pothole or getting stuck in traffic.” 

For those whose livelihood depends on transport, the costs are unsustainable. 

Godfrey Kabuusa, a former commuter taxi driver on the Entebbe–Kampala route, said he was forced to abandon the business after vehicle maintenance costs wiped out his earnings. 

“I spent close to sh400,000 every time the vehicle needed repairs,” he said. “My boss finally told me it was no longer profitable and I had to look for other work.” 

Despite the dire state of infrastructure, Kampala’s budget remains insufficient to tackle even its most basic needs. 

In the upcoming financial year 2025/2026, the Kampala Capital City Authority (KCCA) has proposed a total budget of sh827.7b. 

While this reflects a slight increase from the sh803b allocated in 2024/25, a deeper look at the numbers reveals a worrying trend: most of the infrastructure development funding is expected from external sources. 

Out of the proposed budget, sh574.6b is allocated for infrastructure, but a staggering sh462.6b of this will rely on external funding, primarily from donors and international development partners. 

The Government’s direct contribution for this critical sector stands at just sh127.9b — less than a quarter of the infrastructure allocation. 

KCCA officials noted that much of the funding categorised under “non-funded priorities” includes core needs such as road rehabilitation, waste management, education and healthcare. 

These are essential services that affect the daily lives of Kampala’s residents, but continue to receive piecemeal attention.

City Lord Mayor Erias Lukwago has been vocal in highlighting the funding discrepancies and calling for a more equitable approach to Kampala’s development financing. 

The Lord Mayor speaks out 

City Lord Mayor Erias Lukwago has been vocal in highlighting the funding discrepancies and calling for a more equitable approach to Kampala’s development financing. 

“Kampala generates a lot of revenue from its dwellers and businesses, yet government’s contribution remains minimal,” Lukwago said while presenting the proposed budget at City Hall. 

“We had initially projected a sh2.1 trillion budget under our Strategic Plan (2020/21–2024/25), aimed at transforming Kampala into a liveable, inclusive and economically vibrant city by June. But the actual allocations make these goals unattainable.” 

Lukwago said only sh147b has been earmarked for road network improvements, far below the required funding level. 

“This persistent underfunding undermines our efforts. If we continue down this path, Kampala’s vision of becoming a smart, sustainable city will remain a distant dream.”

The catastrophic waste slide at the Kitezi landfill in August last year, which killed several people and destroyed homes, brought national attention to a long-standing problem.

Road maintenance budget in decline 

The road maintenance situation is particularly dire. The Uganda Road Fund (URF), which supports the upkeep of city roads, has cut its allocation to Kampala from sh26.8b in 2021/22 to just sh10b in both the current and upcoming financial years. 

This sharp decline comes at a time when the city’s road network is deteriorating rapidly. KCCA estimates that at least sh55b is needed annually to maintain Kampala’s roads, drainage systems, bridges and street lighting. 

Yet the current allocation is less than 20% of that figure. With a road network stretching over 2,014km, the gap between what is needed and what is provided is alarmingly wide. 

Only 273km of Kampala’s roads are in good condition. Over 1,300km remain unpaved, and 348km are classified as “very poor”— many of which are key routes in densely populated residential and commercial areas. 

The lack of routine maintenance has a compounding effect. Neglected roads degrade faster, leading to higher repair costs over time. 

Poor drainage exacerbates the problem, as rainwater accelerates road erosion and undermines the structural integrity of bridges and culverts.

Other urgent needs  

While roads capture public attention, other sectors are equally underfunded. Solid waste management is one such area that has reached a crisis point. 

The catastrophic waste slide at the Kitezi landfill in August last year, which killed several people and destroyed homes, brought national attention to a long-standing problem. 

However, the budget response has been tepid at best. After the disaster, KCCA urgently requested sh108b to procure land, build a sanitary landfill at Ddundu in Mukono, purchase garbage trucks, decommission Kitezi and compensate affected residents. 

Instead, the budget for waste management remained stagnant at sh10b — just enough to keep operations running, but far from what is needed for systemic change. 

The finance ministry has pledged sh13b towards an sh18b land purchase for a new landfill at Buyala, Mpigi district, but this still leaves a significant shortfall. 

In the meantime, garbage continues to pile up across the city, threatening public health and environmental safety.

Markets and livelihoods  

Another critical area lacking adequate funding is the development of public markets. 

These markets are essential sources of employment and food security, especially for Kampala’s low-income residents. Only sh500m has been allocated for market development across all five city divisions. 

This amount is a drop in the ocean, considering the demand for secure, well-maintained and accessible marketplaces. 

Vendors continue to operate in makeshift structures, with no access to sanitation facilities, clean water or electricity. 

The underfunding of this sector undermines not just economic activity, but also the dignity of thousands of workers — most of whom are women.

Healthcare, education and city services 

Kampala’s healthcare and education systems are also under strain. Public schools and health centres face overcrowding, understaffing and inadequate supplies. 

City dwellers often have to travel long distances to access services, which are frequently overwhelmed and under-resourced. 

The goals set out in Uganda’s National Development Plan III emphasise inclusive growth and human capital development, but these ambitions remain unmet without adequate budgetary support.

Private sector speaks 

The Kampala City Traders Association (KACITA), one of the city’s most influential business groups, has added its voice to the calls for better funding. 

The group’s chairperson, Thaddeus Musoke, stressed that KCCA needs full government support to function effectively. “KCCA collects significant local revenue from taxes, licences and fees,” Musoke said. 

“But if the central government does not match this with adequate budget support, then what is the incentive for residents and businesses to keep paying? We need accountability and commitment.” 

Numerous experts say without urgent budget prioritisation and a shift in financing strategy, Kampala risks not only stagnation, but regression. 

A failing road network, ineffective waste management, underdeveloped public spaces and poorly funded social services all contribute to urban decay. 

For a capital city meant to symbolise national progress, this is unacceptable. Urban experts warn that the continued neglect of infrastructure and social services could have broader economic consequences. 

High transport and logistics costs, declining investor confidence and deteriorating quality of life could stall not just Kampala’s development, but also Uganda’s national growth. 

As the city approaches the end of its current strategic plan period this year, there is a critical window for reflection and recalibration. 

The central government, development partners and city authorities must work together to ensure that Kampala’s budget reflects the urgency of its needs. 

Only then can Kampala hope to transition from a city surviving under pressure to one thriving with purpose.