Government has saved Shs773.3 billion from wages, non-wage bills, NSSF contributions, gratuity and board expenses following the rationalisation of agencies, Minister of Public Service Muruli Mukasa has said.
While appearing before the Committee on Public Service and Local Government on March 26, 2026, Muruli Mukasa said 90 per cent of staff from 40 rationalised agencies have been absorbed into the mainstream public service.
“The majority of the non- absorbed staff are common cadre staff whose functions and structures are already existing in receiving institutions, and some former staff of rationalised agencies did not apply for jobs in the mainstream public service,” Mukasa said.
He told the committee that the ministry has completed and implemented structures, job descriptions and person specifications for 40 agencies and 14 line ministries under the Rationalisation of Government Agencies and Public Expenditure programme.
The ministry has also enforced a Cabinet directive to phase out director positions as part of efforts to streamline public service structures.
Commissioner for Management Services Allen Kakama dismissed reports that former staff had taken the matter to court. He said pending payments and related issues are being handled by the respective line ministries.
The ministry also presented a list of agencies set for merger and those to be absorbed into ministries in the 2026/2027 financial year. Agencies listed for mainstreaming include the Non-Performing Assets Recovery Trust, Non-Performing Assets Recovery Tribunal, Departed Asians’ Property Custodian Board, Privatisation Unit and NITA-U.
Those marked for merger include the Uganda Human Rights Commission, Equal Opportunities Commission, Law Reform Commission, Electricity Appeals Tribunal, and three firms involved in electricity generation, transmission and distribution.
The ministry reported progress on the legal process supporting the reforms. It said 37 out of 41 Bills have been passed, while 35 have been signed into law by the President. Two Bills were withdrawn and are set to be re-tabled.
Lawmakers praised the ministry for tracking the reforms but urged it to address concerns raised by former staff affected by the changes.
The Rationalisation of Government Agencies and Public Expenditure programme aims to cut public spending, remove duplication and improve service delivery through mergers and restructuring.
