The Ministry of Finance, Planning and Economic Development has released an additional Shs 2.68 billion as part of the Quarter Two Expenditure Limit for Wage in the Financial Year 2025/2026 to clear outstanding salary arrears for Kabale District Local Government.
The move follows a directive by the Minister of State for Finance (General Duties), Hon. Henry Musasizi, who in September instructed the Ministry to prioritize the payment of Kabale District’s June 2024 salary arrears in the next supplementary budget.
Minister Musasizi issued the directive while officially opening the Local Government Budget Consultative Workshop for FY 2026/27 in Kabale Municipality, noting that the issue had persisted for too long and required urgent intervention.
He directed the Acting Commissioner for Budget, John Muheirwoha, to expedite the matter.
According to Kabale District Deputy Chief Administrative Officer, Robert Mugabe, the arrears arose from a budget shortfall in FY 2023/24 following salary increments for scientists. Although the shortfall was corrected in the next financial year, the June 2024 salaries remained unpaid.
District Planner Boaz Kakuru explained that the district faced a wage shortfall of Shs 3.47 billion in FY 2023/24, leaving about 2,100 employees, including those with statutory deductions, unpaid. He said the district had so far received Shs 778 million in the current financial year—an amount insufficient to settle the backlog.
Kakuru warned that the prolonged delay had created discontent among staff, eroded public trust in local leadership, and triggered threats of industrial action.
Minister Musasizi reassured district leaders and employees that the government remains committed to meeting its statutory obligations, promising that all salary arrears would be cleared through the supplementary budget.
CUE IN MINISTER MUSASIZI…..ON THE ISSUE….ENG//
In a letter dated 11th November 2025, addressed to the Kabale District Chief Administrative Officer, Ramathan Ggoobi, the Permanent Secretary and Secretary to the Treasury, confirmed that the Shs 2.68 billion has been provided to settle salary arrears for May and June 2024.
“With this additional wage provision, government aims to ensure that all outstanding salary obligations are cleared,” read part of the statement from the Ministry of Finance.
Ggoobi further directed the Acting Accountant General to facilitate the release and payment of the funds to Kabale District without delay.
