A total of 219 employees from 21 government agencies have been let go as part of Uganda’s much-anticipated rationalization initiative.
This move is part of the government’s effort to merge, streamline, or transfer the responsibilities of several public entities.
The deadline for agencies to either be merged, absorbed into ministries, or have their roles transferred to other bodies ended on Tuesday.
In an interview with KFM, Allen Kakama, Commissioner of Management Services at the Ministry of Public Service, disclosed that the government has allocated UGX 73.6 billion to various ministries to cover pensions, gratuities, and severance packages for the 2,500 employees impacted across the 60 agencies involved in the process.
“The total amount we are set to spend on pensions, gratuities, and severance packages for staff from the affected 60 government agencies stands at UGX 74.3 billion. So far, UGX 29.6 billion has already been allocated to cater for the employees who have already been rationalized,” Kakama stated.
This significant restructuring has affected 60 agencies, and while 219 employees have officially been laid off, the broader scope involves over 2,500 staff members. The move is part of broader government efforts to improve efficiency and reduce duplication of functions among public institutions.
Job Crisis in Uganda
The job losses from the rationalization come amid a growing employment crisis in Uganda. The country faces a significant unemployment challenge, particularly among its youth. Uganda has one of the world’s youngest populations, with over 75% of its people under the age of 30. However, the job market struggles to absorb the influx of new graduates and job seekers each year.
The public sector, traditionally a stable employer, has seen reductions, as the government aims to cut costs and increase efficiency. Meanwhile, the private sector, which could provide alternative opportunities, has faced its own challenges, including limited industrial growth and job creation, inadequate access to credit for entrepreneurs, and the impact of the COVID-19 pandemic.
A report from the Uganda Bureau of Statistics (UBOS) revealed that the unemployment rate in Uganda stood at around 9.2% in 2022, with urban areas facing more significant job shortages compared to rural areas. Informal employment remains high, with many Ugandans relying on small-scale farming or casual labor. Young graduates, in particular, find it difficult to secure employment in their fields, leading to underemployment or migration in search of better opportunities abroad.
The rationalization process, while intended to make government operations more efficient, adds to this burden, as affected employees, many of whom were long-serving civil servants, now face uncertainty in an already struggling job market. The cuts highlight the need for broader economic reforms to address the structural unemployment issues Uganda faces and to provide more avenues for job creation in both the public and private sectors.
