By Our Reporter
The Ugandan government has announced that it will begin paying a portion of the UGX154 billion owed to the Buganda Kingdom, allocating UGX38.5 billion over the next four financial years. The move signals a balancing act by the Ministry of Finance as it navigates competing national priorities ahead of the 2025/26 fiscal year.
State Minister for Finance Henry Musasizi made the announcement during a session with Parliament’s Budget Committee on May 13, in response to MPs questioning allocations in the draft national budget. The matter was raised by Kira Municipality MP Ibrahim Ssemujju, who sought clarity on a UGX120 billion line item set aside for compensations to various entities.
“Buganda Kingdom — we have provided UGX38.5 billion and we shall split this over four financial years,” Musasizi said, offering few details on when the first installment would be disbursed.
The compensation stems from a 2013 agreement between the government and the Mengo administration that saw the return of several historical properties, including 18 county headquarters, Mutesa House in London, Jeza Farm, and plots in Kampala. However, two key properties — Mutesa House and Plot 52 on Kampala Road — were sold off, prompting the Kingdom to demand financial compensation instead.
While the partial compensation to Buganda is symbolically significant, the allocation comes amid intensified government spending in other sectors, reflecting broader national priorities. Musasizi detailed allocations that include:
-
UGX60 billion for scaling up coffee seedling distribution in Northern Uganda.
-
UGX3.95 billion for completing works at the Uganda Martyrs Shrine in Namugongo.
-
An additional UGX1.5 trillion under the Parish Development Model (PDM) to reach uncovered households.
Musasizi emphasized the government’s commitment to agriculture as a growth engine, noting Uganda’s strong coffee export figures: 642,981 60-kg bags were exported in March 2025, generating UGX727 billion in revenue. Italy remained the top market, with regional growth in African exports also noted.
Unresolved Concerns
Although the compensation package to Buganda has been welcomed by some, critics argue that it falls far short of the original UGX154 billion owed, raising concerns about whether the remaining balance will ever be fully honored.
In a separate issue, Tororo North MP Geoffrey Ekanya voiced frustration over the exclusion of 100 parishes from the PDM program. He accused the Ministry of Finance of ignoring repeated appeals for correction, despite the affected parishes being officially gazetted.
“It is unfair that you leave out 100 parishes where elections were conducted and which were gazetted. The Ministry remains adamant even after multiple reminders,” Ekanya said.
A Political & Fiscal Balancing Act
The compensation to Buganda, though limited, represents an attempt by the government to honor longstanding historical agreements while juggling the demands of service delivery, infrastructure development, and economic transformation programs. Yet the staggered payout also reflects budgetary strain and competing political interests.
As Uganda edges closer to the 2026 general elections, observers say such budget decisions are as much about fiscal strategy as they are about political signaling—especially in regions like Buganda, which carry significant electoral weight.
For now, Mengo will receive a fraction of what it is owed — a gesture likely intended to maintain goodwill, if not fully resolve the Kingdom’s claims. Whether the full compensation will follow remains to be seen.
