Kampala Faces $50 Million Budget Cut as Mayor Warns of Infrastructure Strain

The budget of Kampala Capital City Authority (KCCA) has been reduced by more than $50 million for the 2026/2027 financial year, prompting concern from the outgoing Lord Mayor of Kampala, Erias Lukwago.

Lukwago said the funding reduction could delay key infrastructure projects, including efforts to address chronic flooding in the Ugandan capital.

Speaking to reporters, the outgoing Lord Mayor noted that KCCA had requested Shs1.9 trillion (about $500 million) under its 2025-2030 strategic development plan to tackle major urban challenges such as drainage systems, road upgrades and market redevelopment.

However, the government approved about Shs720 billion (around $190 million) for the upcoming financial year, down from more than Shs900 billion (approximately $240 million) allocated previously.

“We are surprised that critical funding for the city’s drainage master plan, which is meant to control flooding, has not been prioritised,” Lukwago said.

Kampala frequently experiences flooding during heavy rains due to ageing drainage infrastructure, rapid urban expansion and encroachment on wetlands, according to studies by the World Bank and United Nations Human Settlements Programme.

The drainage master plan was expected to help mitigate flooding in some of the city’s most vulnerable areas as part of broader urban resilience efforts.

Lukwago also warned that the funding reduction could affect other development initiatives, including upgrades to public markets and road infrastructure.

KCCA oversees the administration and development of Kampala, which has more than 1.6 million residents, while the wider metropolitan area hosts over four million people, according to the Uganda Bureau of Statistics.

Urban planners say the city’s infrastructure is struggling to keep pace with rapid population growth and urbanisation. The World Bank projects that cities across sub-Saharan Africa will absorb most of the region’s population increase in the coming decades, placing growing pressure on housing, transport and drainage systems.

Lukwago said city authorities would continue engaging the government to secure additional funding for priority projects.