The Government of Uganda has secured a major funding boost of $540 million (approximately UGX 2.1 trillion) from the World Bank to implement the second phase of the Uganda Cities and Municipalities Infrastructure Development (UCMID) Programme, the Minister of Lands, Housing and Urban Development, Judith Nabakooba, has announced.
Of the total funding, $80 million will be provided as a grant, supporting Uganda’s ambitious plan to transform urban centres, improve infrastructure, and create thousands of jobs.
The six-year programme, set to run from the 2026/2027 to 2030/2031 financial years, aims to strengthen urban planning and management while expanding access to climate-smart infrastructure, services, and employment opportunities. It will directly benefit an estimated 5.6 million Ugandans, including 1.6 million people in refugee-hosting areas.
The UCMID programme will be implemented across 10 regional cities, 26 municipalities, and 13 refugee-hosting districts. The targeted cities include Lira, Arua, Gulu, Soroti, Mbale, Hoima, Fort Portal, Jinja, Mbarara, and Masaka, while additional municipalities such as Mityana, Kisoro, Rukungiri, Iganga, and Nebbi are among the new areas to benefit.
According to the Minister, the programme is expected to create about 20,000 permanent jobs, including 5,000 specifically for refugees and host communities. These jobs will arise from sectors such as market operations, waste management, logistics, and infrastructure maintenance.
“This programme will not only improve infrastructure but also lower the cost of doing business, increase household incomes, and create more opportunities for youth, women, and small businesses,” Nabakooba noted.
Uganda’s rapid urbanisation—currently at 27 percent of the population and growing at 5.2 percent annually—has placed increasing pressure on infrastructure and services. The UCMID programme is designed to address these challenges by investing in modern urban systems that promote economic growth and resilience.
Key areas of investment will include urban roads and mobility, drainage and flood management, green infrastructure, and sustainable solid waste management. The programme will also support local economic development initiatives aimed at boosting entrepreneurship and job creation.
Minister Nabakooba say improved infrastructure and better market access will help reduce congestion, cut logistics costs, and support the growth of small and medium enterprises, particularly those employing young people and women. The initiative is also expected to help decongest Kampala by creating more economic opportunities in emerging cities.
The programme aligns with Uganda’s Fourth National Development Plan (NDPIV) and Vision 2040, both of which prioritise urbanisation as a driver of economic transformation and job creation.
Next steps will include signing legal agreements between the Government and the World Bank, stakeholder sensitisation, and procurement processes for key infrastructure projects.
The Ministry has called on local government leaders and stakeholders to ensure all environmental and social requirements are met to enable smooth implementation when the programme kicks off in the next financial year.
With its strong focus on infrastructure, jobs, and inclusive growth, the UCMID programme is expected to play a pivotal role in shaping Uganda’s urban future and accelerating national development.
