The government has officially suspended the creation and operationalization of new administrative units for the 2025/26 financial year, citing the need for fiscal consolidation.
The announcement has been made by Secretary to the Treasury, Ramathan Ggoobi, in the Second Budget Call Circular to all Accounting Officers.
According to the circular, the government will not establish or operationalize any new districts, cities, municipalities, sub-counties, parishes, or constituencies in the upcoming financial year.
Ggoobi emphasized that this decision aligns with the government’s broader fiscal strategy aimed at maintaining financial discipline and prioritizing service delivery within existing administrative structures.
“No new administrative units—including districts, cities, municipalities, sub-counties, parishes, and constituencies—will be created or operationalized in FY2025/26,” Ggoobi stated in the circular.
The move comes as a significant shift from the government’s previous stance. In August 2024, Prime Minister Robinah Nabbanja had informed Parliament of plans to operationalize 10 new cities by July 1, 2025.
However, the latest directive signals a change in priorities, likely driven by financial constraints and the need to control public expenditure.
The suspension is expected to impact several communities that had been anticipating elevation to new administrative statuses. While some legislators have welcomed the decision as a step toward responsible budgeting, others argue that it may hinder service delivery in undeserved regions.
Government officials have assured the public that the decision will be reviewed in the future once the country’s financial situation stabilizes.