Uganda: Agriculture Sector Budget for 2025/2026

Agriculture remains the backbone of Uganda's economy, employing over 65% of the population and contributing about 24% to GDP. It's no surprise then that the government has once again placed agriculture at the heart of its economic agenda under the budget theme, "Full Monetisation of the Ugandan Economy."

Big numbers, bigger expectations

The government has allocated Shs1.059 trillion to the Parish Development Model (PDM) for the new financial year. The funds, disbursed in tranches of Shs100 million per parish, bring total investment in the programme to Shs3.3 trillion, covering over 10,600 parishes and reaching more than 2.6 million beneficiaries. Of these funds, 45% has gone into crop farming, particularly maize, cassava, bananas and onions, while 36% is channelled into livestock, and the remainder supports poultry and mixed enterprises.

The Ministry of Finance also committed Shs50 billion to the Agricultural Credit Facility (ACF) to ease access to affordable finance for farmers. Since its inception, ACF has disbursed over Shs1 trillion to more than 14,000 farmers, funding grain trading, on-farm improvements, agro-processing, and post-harvest storage. Government says such interventions are critical for transforming agriculture from subsistence to commercial levels.

Support for value addition is also ramping up. In FY2025/26, new investments in fortified foods like baby formula made from locally grown maize, eggs, and milk have been prioritised. Additionally, the NARO vaccine facility in Wakiso is now producing 20 million doses of anti-tick vaccines annually, tackling livestock diseases that have long plagued Ugandan farmers.

To strengthen resilience against climate shocks, government has increased irrigation infrastructure. 145 solar-powered irrigation schemes were completed, and another 157 are under construction, with 4,300 micro-irrigation systems installed in over 130 districts. Key large-scale irrigation works in Kween, Butaleja, Lira, Kasese, and Oyam are also being finalised.

Bitter truth

Despite the ambitious budget, civil society actors are raising concerns about implementation gaps and structural challenges that risk diluting impact on the ground.

At a post-budget dialogue held on June 18 in Kampala, Allan Ssebulime of PELUM Uganda argued that while the policy direction is commendable, most local governments--tasked with delivering the services--are underfunded and poorly equipped. In Soroti, he said, just 4.1% of the district's budget is allocated to production, while 89% is absorbed by recurrent costs like wages. Luwero shows a similar pattern, with over 70% of funds tied to non-development expenses.

Ssebulime added that aquaculture, a subsector with vast export potential, continues to receive limited support, despite being a strategic component of Uganda's agro-industrialisation strategy. He also cited the persistent lack of access to affordable and consistent quality animal and fish feed as a critical constraint.

"Quality feed is the foundation of productivity. If farmers can't access or afford it, we can't talk about transforming agriculture," he said.

Concerns were also raised over the lack of operational funding for agricultural extension workers. Many districts are unable to fuel motorcycles or maintain essential field equipment, leaving frontline workers unable to support farmers effectively.

Julius Mukunda, Executive Director of the Civil Society Budget Advocacy Group (CSBAG), pointed out that Uganda's high 19.1% interest rate environment, largely driven by excessive domestic borrowing, is crowding out private sector investment, including in agriculture. He called for more fiscal discipline, timely project completion, and clearing of domestic arrears to stabilise the economy and make development finance more accessible.

While the agriculture budget ticks many boxes in terms of policy direction, questions persist on whether it goes far enough to serve all Ugandans, particularly smallholder farmers who produce over 70% of the country's food.

Agriculture holds the key to Uganda's industrial transformation, food security, and rural employment. But unless funding is matched with local capacity, accountability, and timely implementation, farmers like the one in Kiryandongo will continue to ask the same question: Is this allocation truly for all of us?

Article originally from The Independent (Kampala)