REVENUE REMITTED

In 1992, the Government of Uganda adopted a decentralization policy to bring social services
closer to the people.

The 1995 Constitution and the Local Government Act provide the legal framework for
decentralization.

Local Governments are required to prepare their own development plans and budgets and
mobilize local revenues.

Despite the decentralization policy, resources from the Central Government to Local
Governments have been limited.

Locally generated revenue is remitted back to the consolidated fund for allocation to Local
Governments.

Continuous recentralization of functions has negatively impacted service delivery,

accountability, and financial dependency.

Policy reforms have been attempted, including a 2020 directive to remit all local revenue to
the Consolidated Fund.

Local Governments rely on grants from the Central Government, donors, and development
partners.

Local Government budgets funded by local revenue used to be approved and spent locally
before the 2016/2017 financial year.

Remitting all local revenue to the consolidated fund has led to concerns about accountability,
transparency, and delays.

Lawmakers and former local government leaders have criticized the directive, citing its
negative impact on service delivery and decentralization principles.

Recentralization of local revenue collection demoralizes local government leaders and

taxpayers.

There is a call to reverse the directive and allow local governments to manage and spend
locally collected revenue.

Conclusions:
Uganda adopted a decentralization policy to improve service delivery at the local level, but
there have been challenges in its implementation.

Local Governments face financial constraints due to limited resources from the Central
Government and an overdependence on grants.

Recentralization of certain functions and the directive to remit all local revenue to the
consolidated fund have undermined decentralization principles.

Lawmakers and former local government leaders believe that addressing issues of corruption,
accountability, and transparency should be prioritized instead of centralizing local revenue.

Expounding on the Facts: The passage highlights Uganda's decentralization policy, which
was initiated in 1992 to enhance service delivery at the local level. This policy empowers
Local Governments to create their development plans, budgets, and mobilize local revenues.
However, the intended benefits of decentralization have been hindered by various challenges.

One major challenge is the limited allocation of resources from the Central Government to
support decentralization efforts. This financial constraint has made it difficult for Local
Governments to effectively deliver services to citizens. Additionally, while the legal
framework allows Local Governments to levy and collect fees and taxes locally, the collected
revenue is sent back to the consolidated fund, resulting in a disconnect between revenue
generation and service delivery.

Continuous recentralization of certain functions has further eroded the autonomy of Local
Governments, impacting service delivery, accountability, and citizen empowerment. Despite
efforts to address capacity gaps and corruption within Local Governments, progress has been
limited.

A significant policy shift occurred in 2020 when the Ministry of Finance directed that all
locally generated revenue be remitted to the consolidated fund. This directive raised concerns
about accountability, transparency, and delays in financial reporting. Lawmakers and former
local government leaders argue that instead of centralizing local revenue, efforts should be
focused on addressing corruption and transparency issues.

The recentralization of local revenue collection has not only led to financial distress among
Local Governments but has also demoralized local government leaders and taxpayers.
Citizens are less motivated to pay local taxes when they perceive a lack of benefits from the
services they fund.

In response to these challenges, there is a call to reverse the directive and allow Local
Governments to manage and spend locally collected revenue. This would align with the
principles of decentralization and empower local authorities to improve service delivery and
address the needs of their communities.

In conclusion, while Uganda's decentralization policy aimed to bring services closer to the
people, there have been significant challenges related to resource allocation, recentralization,
and the management of locally generated revenue. Addressing these issues and reasserting
the autonomy of Local Governments could help achieve the intended goals of
decentralization and better serve the citizens of Uganda.
KCCA SCHOOLS

Kampala Lord Mayor Erias Lukwago expressed concern about the poor performance of
Kampala Capital City Authority (KCCA) schools in the Primary Leaving Examination (PLE).

In the PLE examination, 1,930 candidates from KCCA schools failed, an increase from 1,266
in the previous year.

The best two candidates from KCCA schools scored aggregate five, and the second-best
scored aggregate six.

KCCA schools registered candidates in various divisions: 12,896 in division one, 17,402 in
division two, 3,451 in division three, 2,426 in division four, 1,333 ungraded, and 597 in grade
X.

Despite an increase in the number of first grades, the overall performance of KCCA schools
dropped from 96.2% in 2020 to 95% in 2022.

Erias Lukwago attributed the poor performance to factors such as underfunding, a limited
number of teachers, high teacher-pupil ratios, poor infrastructure, and the government's
automatic promotion policy.

Lukwago called for the implementation of the KCCA strategic plan, which aims to improve
school performance and receive government funding of shs100B per year for five years.

Lukwago highlighted that the capitation grant of shs9,300 per pupil per year is insufficient
due to the high cost of living and inflation in the city.

The master plan for model schools in Kampala, including facilities like ICT and libraries, has
not been realized, leading to overcrowding in existing schools.

Lukwago urged the government to increase the salaries of art teachers, citing low motivation
among them.

The KCCA spokesperson, Simon Kasyate, supported Lukwago's concerns about the
challenges faced by KCCA.

Conclusions:

KCCA schools in Kampala have witnessed a decline in their performance in the Primary
Leaving Examination, with an increase in the number of failing candidates compared to the
previous year.
The best-performing candidates from these schools achieved relatively modest scores,
indicating a need for improvement.

The overall performance drop is attributed to a range of factors, including underfunding,

teacher shortages, high teacher-pupil ratios, poor infrastructure, and government policies like
automatic promotion.

The KCCA has developed a strategic plan to address these issues, with expectations of
significant government funding over five years.

The capitation grant provided to schools is deemed insufficient due to the high cost of living
in the city.

Plans for model schools with advanced facilities have not been realized, leading to
overcrowding in existing schools.

The motivation of art teachers is a concern, and there is a call for increased salaries to address
this issue.

The Ministry of Education and Sport did not respond to requests for comment on these
challenges.

Expounding on the Facts: The passage highlights several significant issues affecting the
performance of KCCA schools in Kampala, Uganda. One of the primary concerns is the poor
performance of students in the Primary Leaving Examination (PLE). The increase in the
number of failing candidates, as well as the relatively modest scores achieved by the top-
performing students, indicates that there is room for improvement in these schools.

Several factors contribute to the poor performance. Underfunding is a major issue, leading to
a limited number of teachers and high teacher-pupil ratios. These conditions make it
challenging to provide quality education. Additionally, poor infrastructure and the
government's automatic promotion policy, which promotes students to higher grades
regardless of their performance, have negatively impacted the educational environment.

To address these challenges, the KCCA has developed a strategic plan that spans five years
and aims to improve the performance of schools. However, this plan depends on substantial
government funding of shs100B per year.
The capitation grant provided to schools is considered insufficient, given the high cost of
living and inflation in the city. This funding gap affects the quality of education and resources
available to students.

Furthermore, the plan to establish model schools with advanced facilities has not been
realized, leading to overcrowding in existing schools. This overcrowding can compromise the
learning environment and the ability of teachers to provide quality education.

The passage also highlights the issue of low motivation among art teachers, with a call for
increased salaries to address this problem.

It's notable that the Ministry of Education and Sport did not respond to requests for comment
on these challenges, which suggests a potential lack of engagement or communication
between local authorities and the central government regarding education issues in Kampala.

In conclusion, the poor performance of KCCA schools in Kampala is a complex issue with
multiple contributing factors, including funding, teacher shortages, infrastructure, and
government policies. Addressing these challenges will be essential to improve the quality of
education and the academic outcomes of students in the city.