Government allocates Shs73.6b for employees affected by agencies merger

A total of 219 employees from 21 government agencies lost their jobs on September 30  as the Rationalisation of Agencies and Public Expenditure (RAPEX) exercise commenced, with these agencies being reintegrated into their respective ministries.

These agencies are part of 60 semi-autonomous entities the Cabinet approved for either merger, reintegration into their mother ministries, or transfer of functions to other entities.

The government has allocated Shs73.6 billion to cover pensions, gratuities, and severance packages for 2,500 employees affected across all 60 agencies.

Ms Allen Kakama, the commissioner of Management Services at the Ministry of Public Service, told Monitor that Shs29.1 billion had been set aside for the first batch of employees from 21 agencies.

“We calculated very well to see how many employees might not be absorbed and how much we would need to pay. That is the Shs73.6 billion for pensions, gratuities, and severance packages,” she said.

The second phase of the rationalisation will occur in December, with more employees expected to be affected.

“Most of the employees who don’t qualify for pensions or gratuities will receive severance packages to help them settle,” Ms Kakama added.

She said the government aims to absorb as many workers as possible, stating, “It is only when you cannot be absorbed that you will have to go home, but in any case, the money is ready.”

This reorganisation is the most extensive since World Bank-funded reforms in the early 1990s, which resulted in mass layoffs.

Intent

The original intent of these reforms was to create a leaner, better-paid, and motivated public service. 

However, the creation of new agencies like the Uganda Investment Authority and Uganda Revenue Authority in 1993 led to the expansion of the public sector, resulting in two categories of public workers, those in traditional civil service with lower wages, and those in semi-autonomous agencies with higher pay and better conditions.

Ms Kakama noted that employees returning to their mother ministries would not retain their current salaries.

“They cannot move with their salaries because the terms and conditions in ministries differ,” she explained, adding: “If you are joining a ministry, you will have to accept the terms of service applicable there.”

The rationalisation is expected to save the government approximately Shs1 trillion annually in rent and salaries.

“In cases where institutions merge, one may have been renting while the other had its own premises. Now, both can operate in the same building, reducing rental costs,” Ms Kakama said.

The rationalisation process involves three approaches: merging agencies into one semi-autonomous entity, reintegrating others into their mother ministries, and dissolving some agencies, with their responsibilities transferred to ministry departments or other agencies.

Ms Kakama confirmed that 24 out of 60 agencies have been addressed so far.

“Out of the 24 Acts of Parliament, 23 have been passed, and the President has assented to 21,” she said.

Five entities, including the National Youth Council, National Women's Council, National Children's Authority, National Council for Disability, and the National Council for Older Persons, have been streamlined into the Ministry of Gender, Labour, and Social Development.

These bodies will now operate under a single national secretariat for special interest groups instead of having five separate ones.

Mr Jacob Eyeru, the chairperson of the National Youth Council, clarified that despite changes, his body retains its powers and functions.

“Although we temporarily lost our jobs, the power to recruit remains with us. The law does not abolish the NYC as initially planned,” he said.

Transfers

In other changes, the Uganda Wildlife Education Centre has been merged with the Uganda Wildlife Authority, while the National Libraries of Uganda has been transferred to the Ministry of Education and Sports.

The National Planning Authority has absorbed the National Population Council and the National Physical Planning Board.

During a handover ceremony at the Ministry of Finance, Planning, and Economic Development in Kampala, the acting Director General of the National Population Council, Mr Samuel Omwa, and Mr Emmanuel Kaganzi, the head of Physical Planning at the Lands ministry, presented their merger reports to Dr Sengonzi Damulira, who then passed them to Dr Joseph Muvawala, head of the National Planning Authority.

Other notable changes include the transfer of civil registration from the Uganda Registration Service Bureau to the National Identification and Registration Authority, and the return of the Uganda National Meteorology Authority and National NGO Bureau to the ministries of Water and Environment, and Internal Affairs, respectively.

Adjustments

More adjustments are anticipated as the rationalisation process continues. For example, the Uganda Free Zones and Export Promotions Authority, formed from the merger of the Uganda Free Zones Authority and the Uganda Export Promotions Board, is operating without a board of directors.

Ms Kakama explained: “The board is not in place because the two institutions were abolished, and one new institution was created. The minister will nominate a new board and submit it to the Cabinet for approval. The delay was due to issues with the accounting officer in the Ministry of Trade.”

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