Auditor General Flags Billions Lost in Uganda’s Cost-Cutting RAPEX

The government’s flagship cost-cutting reform, the Rationalisation of Government Agencies and Public Expenditure (RAPEX), has cost taxpayers tens of billions of shillings in disputed payouts, exposed serious asset mismanagement, and created fresh fiscal risks, the Auditor General’s 2026 report reveals.

Payments totaling UGX 46.8 billion to reabsorbed staff and UGX 30.4 billion to retirees directly contradicted the official position.

The Uganda National Roads Authority alone disbursed UGX 227.24 billion in severance packages, far exceeding projections and eroding anticipated savings.

When the Cabinet adopted RAPEX in February 2021, the goal was to streamline over 150 semi-autonomous agencies, cut duplication, reduce recurrent expenditure, and ease pressure on rising public debt, now above 50% of GDP. 

Anchored in the Public Finance Management Act, 2015, the reform required legal amendments and a delicate transition of staff, assets, and liabilities. 

By December 2025, Parliament had passed 35 laws rationalising 40 entities: 23 were dissolved, merged, or mainstreamed, while 17 remain pending.

In a review of eight rationalised entities, 1,917 staff were affected, of whom 1,492 were absorbed into other government institutions, and 425 exited public service. 

Despite guidance from the Attorney General and Ministry of Public Service stating that reappointment constitutes continuity of service and does not attract terminal benefits, 1,389 reabsorbed staff received UGX 46.8 billion, and 410 of 425 retirees received UGX 30.4 billion, while 20 retirees remain unpaid.

Other former employees continue to claim outstanding sums. None of the entities had specific rationalisation budgets; payments were absorbed by successor ministries, raising questions about fiscal planning and transparency.

The UNRA case was particularly striking: UGX 227.24 billion in severance far exceeded projections and undermined expected monthly savings of UGX 39 billion.

The Auditor General also found tens of billions of shillings in discrepancies between asset registers, handover reports, and closure financial statements. 

Several assets were omitted entirely; only one entity conducted the mandatory Board of Survey. Land records were incomplete, with parcels of land untitled, encroached, or under dispute. Rationalised entities disclosed receivables of UGX 475 billion and liabilities of UGX 932 billion, prompting the Auditor General to warn of potential losses if creditors pursue claims before liabilities are verified and settled.

President Yoweri Museveni defended RAPEX, arguing agencies like UNRA and NAADS were created when ministries were weak but have outlived their usefulness. 

Mainstreaming their functions, he said, would restore discipline and accountability. The Public Service Commission has advertised thousands of positions to strengthen absorbing ministries, and the government insists service delivery will stabilise once transitions are complete. 

Lawmakers warn dissolving specialised agencies, especially in sensitive sectors such as coffee, which supports 12.5 million Ugandans, could jeopardise international accreditation and livelihoods. 

MPs like Dr. Abed Bwanika (Kimanya–Kabonera) and Lindat Auma (Lira District Woman Representative) argue that ministries may lack the technical capacity to immediately absorb specialised functions. 

Policy analyst Joseph Ochieno says rationalisation is addressing a problem the government created through years of unchecked agency expansion.

“Whoever bloated the system 15 years ago should be accountable. We don’t need redundant agencies.” Ochieno pointed to Uganda’s oversized government: 559 MPs in a chamber built for 80, excessive ministers, and opulent elite spending amid 46 percent public sector vacancies as of 2024.

The Advocates Coalition for Development and Environment (ACODE) Executive Director Dr Arthur Bainomugisha, supports the intent but warns that inconsistent implementation risks undermining credibility.. 

“Rationalisation was a right move to curb duplication and corruption, but it got captured in Parliament, allegedly through bribes,” he said. 

“If we transition 15,000-20,000 professionals to the private sector with proper support, we could spark real growth. Instead, we’re stuck with bloated costs and stalled reforms.”

With the FY2025/26 budget over UGX 72 trillion and debt pressures mounting, RAPEX was intended to signal fiscal discipline. 

The Auditor General’s findings suggest that unless legal guidance is consistently applied, asset management is tightened, and liabilities are resolved, the reform risks becoming another expensive restructuring exercise delivering fewer savings than promised.