The Government of Uganda faced a barrage of criticism during a heated parliamentary session on March 12, 2025, as lawmakers demanded answers over the chaotic rollout of agency mergers and the ballooning public debt tied to these reforms. The session, part of the 11th Parliament’s ongoing scrutiny of the Rationalisation of Agencies and Public Expenditure (RAPEX) program, exposed deep fissures between the executive and legislature, with MPs accusing the government of mismanagement, lack of transparency, and risking the livelihoods of thousands of public sector workers.
The debate centered on the merger of several high-profile agencies, including the Uganda National Roads Authority (UNRA), into their parent ministries. Lawmakers argued that the process has been hastily implemented, leaving critical questions unanswered about financial accountability and the fate of employees. The government has touted RAPEX as a cornerstone of its strategy to curb wasteful spending and streamline operations, projecting savings of up to one trillion shillings annually. However, critics in Parliament contended that the initiative has instead created confusion and masked deeper fiscal problems, including a national debt that now stands at 72% of GDP—approximately $52 billion—according to recent Central Bank estimates.
One of the most contentious issues raised was the absorption of workers from dissolved agencies. Parliament directed the Minister for Public Service to table a detailed report within days, outlining how former employees have been integrated into ministries and whether their pensions and benefits are secure. The directive came after concerns that the government’s allocation of 31.9 billion shillings to support retained staff was a drop in the bucket compared to the scale of the workforce affected. Lawmakers pointed to the risk of mass layoffs and the potential for legal challenges if workers’ rights are not safeguarded, drawing parallels to past reforms that left civil servants stranded.
The merger of UNRA, a key player in Uganda’s infrastructure development, drew particular ire. Legislators accused the government of rushing the dissolution without a clear transition plan, alleging that political motives—rather than economic prudence—were driving the process. They highlighted stalled road projects, unpaid contractors, and a lack of audits as evidence of systemic failures that the merger fails to address. Some MPs suggested that the move was designed to sideline certain officials rather than improve efficiency, a charge the government has yet to rebut directly.
Financial transparency was another flashpoint. The Public Accounts Committees recently flagged discrepancies in the financial reporting of merged entities, a concern echoed in yesterday’s session. Lawmakers demanded that the Ministry of Finance, Planning, and Economic Development provide a breakdown of debts inherited by the consolidated agencies, many of which were already saddled with liabilities from incomplete projects. With Uganda’s debt servicing costs projected to consume over 30% of the 2025/2026 budget, MPs warned that the mergers could exacerbate the country’s fiscal strain rather than alleviate it.
The government, for its part, defended the reforms as a necessary response to economic pressures. Officials argued that consolidating agencies like UNRA, the Uganda Coffee Development Authority (UCDA), and others into ministries would eliminate overlapping mandates and reduce administrative overheads. They pointed to the release of funds to support staff transitions as proof of commitment to a smooth process. Yet, this defense did little to quell skepticism, with some legislators questioning whether anticipated savings would materialize or simply be swallowed by inefficiencies in the ministries absorbing these functions.
The stakes are high as Uganda approaches the 2026 general elections. Public discontent, already simmering over rising taxes and cost-of-living pressures, could boil over if the mergers disrupt essential services like road maintenance or agricultural support—sectors critical to millions of livelihoods. Coffee farmers, for instance, have protested the planned integration of UCDA into the Ministry of Agriculture, fearing a loss of specialized oversight that has helped Uganda maintain its status as Africa’s top coffee exporter. Similarly, contractors owed billions by UNRA have threatened legal action, adding another layer of complexity to the government’s plans.
Analysts see the parliamentary showdown as a test of the government’s credibility. The RAPEX program, first mooted in 2018 and accelerated under President Museveni’s directive, was intended to signal fiscal discipline to international lenders like the IMF and World Bank, from whom Uganda has borrowed heavily. Yet, with debt distress looming and no clear evidence of savings six years in, the initiative risks becoming a political liability. Lawmakers have signaled they will not rubber-stamp further mergers without rigorous oversight, setting the stage for a contentious battle in the weeks ahead.
As the Minister for Public Service prepares the mandated report, all eyes are on whether the government can provide concrete answers—or if the mergers will deepen Uganda’s economic and political woes. With the national treasury stretched thin and public trust fraying, the outcome of this debate could shape the country’s trajectory for years to come.
