Museveni's Gov't Reveals Why It Wants to Cut Off Tens Of Thousands of Employees

The Ugandan government has raised fresh concerns over the financial sustainability of Public Sector Organizations (PSOs), signaling a possible move to de-gazette several of them and lay off tens of thousands of employees.According to government insiders, this drastic measure is being considered due to the declining financial health of these entities, a crisis largely driven by rising taxes and operational levies.

Over the years, PSOs have played a vital role in service delivery across critical sectors including health, transport, and utilities. However, recent audits reveal that many of these organizations are now struggling to stay afloat, with some operating at a loss for consecutive years.

The high cost of compliance with tax obligations and sector-specific levies has reportedly eaten into their operational budgets, leaving them unable to sustain large workforces.

A senior official from the Ministry of Finance noted that the government is reviewing the viability of maintaining heavily burdened agencies that no longer provide value for money.

“The conversation is no longer just about employment numbers. It’s about efficiency, sustainability, and accountability,” the official stated.

Critics, however, warn that such a move could trigger massive unemployment and social unrest, especially given Uganda's already high youth unemployment rate.

Labor unions have called for immediate dialogue, urging the government to review tax policies affecting PSOs instead of targeting employees.

President Museveni’s administration now finds itself walking a tightrope—balancing between cutting costs and maintaining social stability.

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While cost-cutting measures are necessary to curb waste and improve efficiency, the human cost of such decisions cannot be overlooked.

Even as the debate continues, thousands of public sector workers remain on edge, unsure of what the future holds. Stakeholders are now pushing for a national conversation before any final decisions are made