Kampala — The Government of Uganda has secured $540 million (approximately UGX 2.1 trillion) from the World Bank to finance a major urban development initiative aimed at transforming cities and municipalities across the country.
Speaking at the Uganda Media Centre on Tuesday, Lands, Housing and Urban Development Minister Judith Nabakooba, said the funding will support the Uganda Cities and Municipalities Infrastructure Development (UCMID) Programme, a six-year project set to run from 2026 to 2031.
“The Government has secured $540 million from the World Bank, including an $80 million grant, to implement the UCMID Programme and accelerate urban transformation across Uganda,” Nabakooba said.
She explained that the programme will be rolled out in 10 cities, 26 municipalities, and 13 refugee-hosting districts, directly benefiting about 5.6 million people, including 1.6 million in refugee-hosting communities.
According to the Minister, the initiative is designed to tackle persistent urban challenges such as poor road networks, flooding, inadequate solid waste management, and limited employment opportunities.
“This programme will deliver improved urban roads and mobility, enhanced drainage systems, strengthened waste management, and better planned urban spaces that support economic activity,” she said.
Nabakooba added that the programme is expected to create approximately 20,000 permanent jobs, including 5,000 specifically for refugees and host communities.
“We expect this intervention to not only improve infrastructure but also support small businesses and raise household incomes, particularly for youth and women,” she noted.
Providing context, the Minister said Uganda’s urban population currently stands at 27 percent and is growing at an annual rate of 5.2 percent, with urban centres projected to contribute up to 70 percent of the country’s Gross Domestic Product (GDP).
She emphasised that the programme will also help decongest Kampala by expanding economic opportunities in regional cities. “This programme is critical in strengthening institutional capacity for urban planning and management, while also easing pressure on Kampala by promoting growth in other urban centres,” she said.
On implementation, Nabakooba revealed that the government is set to finalise legal agreements with the World Bank, conduct stakeholder sensitisation, and begin procurement processes for infrastructure works.
In her closing remarks, she called on local governments to adhere strictly to environmental and social safeguards. “We urge all implementing entities to ensure full compliance with environmental and social standards to guarantee a smooth and successful rollout of the programme,” she said.
The UCMID Programme marks Phase II of Uganda’s urban infrastructure development efforts, building on previous interventions aimed at improving service delivery and livability in rapidly growing urban areas.