Financing for equity in primary and secondary education
1. Education resources to subnational governments
2. Education resources to schools
3. Education resources to students and families
4. Social policies and family support programmes
Introduction
In Uganda, the central government is primarily responsible for funding public education services, providing resources directly to local governments. The Ministry of Education and Sports offers technical support, guidance, coordination, and regulatory oversight. Local governments, particularly districts, are tasked with delivering primary and secondary education, as well as teacher education, science, technology, innovation, special needs, and technical and vocational education.
Local governments act as the main channels for public education spending, serving as the primary agents for service delivery despite having limited discretion over funding allocations. In line with global trends, the largest share of education expenditure is dedicated to salaries and wages, with over half of education funds allocated to staff compensation (see here for basic education funds flow).
1. Education resources to subnational governments
Decentralisation in Uganda began in the early 1990s and was formalised under the 1997 Local Government Act, supported by programmes such as Universal Primary Education (1997), the Education Strategic Investment Plan (1998-2003) and the Teacher Development and Management System, which emphasised conditional and block grants with some focus on equity.
Education spending in Uganda is largely decentralised, with resources channelled through local governments, though the central government retains control over allocations. Over half of all education sector resources are spent at the sub-national level, reflecting the decentralisation policy in which social services are delivered at lower levels of government. Wages and salaries represent the largest component of district-level education budgets.
Intergovernmental Fiscal Transfers
Since 2017, grants to local governments have been allocated under the intergovernmental fiscal transfers system, with education receiving the largest share, accounting for 45% of total transfers. Transfers are categorised as unconditional, conditional, and equalisation grants. Unconditional grants provide a minimum allocation for running decentralised services. Conditional grants finance specific programmes and must be spent according to agreed conditions between central and local governments. Equalisation grants provide additional funds to the least developed districts.
Conditional grants to districts are further classified into wage grants, non-wage recurrent grants, and development grants. Wage grants cover staff salaries in primary and secondary education. Non-wage recurrent grants finance operational costs, management and oversight of schools, sports and co-curricular activities, emergency education response, and school maintenance. Development grants support capital expenditure in primary and secondary schools.
According to guidelines published by the Ministry of Education and Sports, grant funding is distributed to local governments using formulae designed to ensure fairness, equity, and objectivity. Allocations are automatically calculated in the budget through the Online Transfer Information System, following the formula and phased implementation principles. Wage grants are determined by the number of staff listed and planned for recruitment in each local government, while non-wage recurrent grants are primarily based on school enrolment.
Uganda’s local government education funding formulas allocate resources for both primary and secondary education based on a weighted combination of factors reflecting enrolment, geographical challenges, performance metrics, and demographic needs. For primary education, funding is distributed with 90% weight to Universal Primary Education enrolment figures, while land area multiplied by the primary school-aged population (including refugees), population in hard-to-reach and hard-to-stay areas, and performance index (UPE) adjusted by the relevant school-aged population together account for the remaining 10%. For secondary education, the main driver (90%) is the total number of government-aided UPOLET and USE students, with additional consideration given to land area multiplied by secondary school-aged population, performance index (USE) factored by school-aged population, and the population in hard-to-reach and hard-to-stay areas, all weighted at 2% or 6%.
2. Education resources to schools
Local governments allocate non-wage recurrent and development grants according to an allocation formula. School capitation grants are distributed under the Universal Primary Education (UPE) programme, operational since 1997, and the Universal Secondary Education (USE) programme, operational since 2007, providing per-student subsidies to cover tuition and registration costs.
School Capitation Grants
Non-wage recurrent grants are allocated in two stages. First, target allocations for primary and secondary schools are calculated based on approved unit costs per school and per learner. Separate calculations are made for primary, secondary, and BTVET education. For the 2023–2024 financial year, UPE schools receive 1,350,000 shillings per school annually and 20,000 shillings per learner, with 22,000 shillings per learner for those with special educational needs. Government-aided USE schools receive 175,000 shillings per learner per year, rising to 192,500 shillings for learners with special needs in inclusive settings. Special needs learners in exclusive schools are allocated 1,230,000 shillings annually, while government-aided Universal Post O-Level Education and Training (UPOLET) schools receive 270,000 shillings per learner per year.
Schools in hard-to-reach areas, as classified by the Ministry of Public Service, may receive an additional hard-to-reach capitation of up to 2,000 shillings per learner to address higher operational costs. Since 2021/22, learners with disabilities in primary and secondary government-aided schools also receive a special top-up capitation grant of 18,700 shillings.
The remaining grant is distributed according to specific weightings. Ninety per cent is based on actual enrolment, reflecting higher operational costs with larger student numbers. Six per cent is determined by a performance index, directing resources to areas with lower proficiency in English and Mathematics. Two per cent each is allocated according to population in hard-to-reach or hard-to-stay areas and land area, accounting for the higher costs of service delivery in challenging terrains and sparsely populated regions, such as Karamoja.
Wage Grants for Hard-to-Reach and Refugee-Hosting Schools
Local governments also provide wage grants, including a hard-to-reach allowance equivalent to 30 per cent of a staff member’s salary for personnel in hard-to-reach areas outside town councils and Higher Local Government headquarters, as specified in the Hard-to-Reach Framework.
Additional wage support is provided to selected refugee-hosting primary schools. Funded through a government grant under the education and sports sector, these allocations cover staff wages and non-wage operational costs included in the non-wage recurrent grant. The grants are specifically earmarked for transitioning NGO refugee and host-serving primary schools to the local government system.
3. Education resources to students and families
The government provides schools with capitation grants, calculated per student per term, under the UPE and USE programmes. These grants are allocated directly to schools rather than to individual students, ensuring funding supports school operations and education delivery (see Section 2).
4. Social policies and family support programmes
Social protection spending is mainly managed by the Ministry of Gender, Labour and Social Development (MGLSD), the Equal Opportunities Commission, and the Ministry of Local Government. While some programmes have occasionally supported school fees and learning materials, only the Girls Empowering Girls (GEG) programme specifically targets school-aged children. The programme is externally funded but led and implemented by the government.
Girls Empowering Girls Programme
Launched in 2019 by the Government of Uganda through the Kampala Capital City Authority (KCCA), the Girls Empowering Girls (GEG) programme is Uganda’s first social protection initiative directly targeting children, supporting adolescent girls aged 11 to 15 to safely transition into adulthood, continue education or training, and achieve their goals. It assists both in-school girls in upper primary (P6) at risk of dropping out and out-of-school girls considered vulnerable in their communities, providing peer mentoring, education, training, referrals to support services, and a small cash transfer. Targeting uses geographical, categorical, and community-based methods, selecting parishes and schools via a vulnerability index and identifying the most at-risk girls through assessments of household and child poverty, school drop-out rates, and other vulnerabilities. The programme is led by KCCA, supported by UNICEF, and funded by the European Union and the Government of Belgium.
5. School meal programmes
The 2008 Education Act places the responsibility for providing meals to children at school entirely on parents or guardians. Despite this, a school feeding programme operates in the Karamoja sub-region, primarily funded externally, while the government plans to launch a national school feeding programme in 2026.
WFP School Feeding Programme in Karamoja
The School Feeding Programme in Karamoja, launched in 2014, largely funded by the World Food Programme (WFP) and implemented with the Ministry of Education and Sports, provides nutritious meals to primary school children. Its aim is to improve access to education and reduce hunger among school-age children in areas with high poverty and malnutrition, and low enrolment and retention, especially for girls.
In April 2024, the government announced national commitments to school meals and published Guidelines on School Feeding and Nutrition. These guidelines set out plans to provide meals to learners in primary schools nationwide starting in 2026.
This profile has been reviewed by James Urwick (Uwezo Uganda).
