Lukwago Suspends Strained KCCA's Budget Planning
The Capital City Authority (KCCA) is facing severe budget cuts, with Lord Mayor Erias Lukwago announcing a halt to planning for the 2025/2026 fiscal year due to a Shs247 billion reduction in funding from the Ministry of Finance.
Originally allocated 803.05 billion shillings for the 2024/2025 year, KCCA’s budget will drop to Shs555.278 billion, leaving critical projects unfunded.
Among the initiatives impacted are:
- Road construction and expansion
- Building new markets in Kampala's five divisions
- Renovations for KCCA schools and health centers
- Landfill upgrades at Kiteezi
- Land acquisition for waste disposal
These projects collectively required approximately 1.653 trillion shillings, but the budget will now largely cover only salaries.
Lukwago highlighted the government's neglect of Section 37, which mandates a financial fund sourced from property taxes, noting that since 2015, similar budget cuts have hindered KCCA’s capacity to develop the city.
City planners estimate over 2.1 trillion shillings is needed to meet Kampala’s urgent infrastructural demands.
To address the situation, KCCA has called a meeting for Monday with key stakeholders to explore possible solutions and prioritize essential projects amid these financial constraints.
