2026/27 National Budget: Agriculture gets record Shs2.26 trillion as government targets value addition and commercial farming
Recognising the increasing threat posed by climate change, Government has accelerated investments in irrigation and water-for-production infrastructure.
Government has allocated a record Shs2.26 trillion to the agro-industrialisation programme in the 2026/27 national budget as it intensifies efforts to transform agriculture from subsistence production to commercial farming and value addition.
Presenting the 2026/27 budget at Kololo Independence Grounds on Thursday, Finance Minister Henry Musasizi said agriculture remains central to Uganda’s economic transformation and the country’s strategy to achieve tenfold economic growth.
“Agriculture remains the backbone of Uganda’s economy. It employs millions of Ugandans, supplies raw materials to industry, produces exports and sustains livelihoods across the country,” Musasizi said.
However, he emphasized that Uganda’s future prosperity will depend on moving beyond raw commodity production.
“Uganda’s future prosperity will not come from producing more raw commodities alone. It will come from increasing productivity, expanding value addition, strengthening agro-processing and improving market access,” he said.
The minister highlighted significant progress in agricultural research, particularly the completion of the anti-tick vaccine facility at the National Livestock Resources Research Institute in Nakyesasa.
“This year, government made significant advances in agricultural research and genetics. The anti-tick vaccine facility at the National Livestock Resources Research Institute in Nakyesasa was completed and is now operational, producing about 36 million doses, serving 18 million livestock in the first year,” Musasizi told Parliament.
Government also produced Foot and Mouth Disease vaccines and continued research into disease-resistant crops and livestock breeds.
“These investments will reduce production losses, raise productivity and increase farmer incomes,” he noted.
Recognising the increasing threat posed by climate change, Government has accelerated investments in irrigation and water-for-production infrastructure.
Musasizi reported progress on several strategic irrigation projects including Kabuyanda Dam in Isingiro District, Atari in Bulambuli, Wadelai in Pakwach, Acomai in Bukedea, Namaitsu in Bududa, Chembombai in Bukwo and the Sipi Irrigation Scheme.
“Climate change continues to expose farmers to significant weather-related risks. Government is, therefore, accelerating investment in irrigation and water-for-production infrastructure to reduce dependence on rainfall,” he said.
The minister added that solar-powered irrigation systems are also being rolled out nationwide to support all-year-round agricultural production.
Government is also expanding coffee growing into non-traditional regions as part of efforts to increase export earnings.
“Coffee remains one of Uganda’s most important export commodities. Government has, therefore, expanded coffee cultivation into Northern and Eastern Uganda,” Musasizi said.
According to the minister, two coffee mother gardens were established and more than 1.4 million coffee seedlings distributed to 7,532 farmers in Northern Uganda during the year.
“This intervention will broaden participation in one of Uganda’s most profitable agricultural value chains,” he added.
The budget speech also highlighted progress in developing Regional Agricultural Mechanisation Centres and Animal Disease Control Centres in districts including Kiruhura, Mbale, Kiryandongo, Bunyangabu, Nakaseke and Katine.
“These facilities are improving access to modern agricultural equipment, veterinary services and disease surveillance systems,” Musasizi said.
Looking ahead, Government intends to focus heavily on value addition and agro-processing.
Musasizi said the Shs 2.26 trillion allocation will finance agricultural research and innovation, irrigation, extension services, quality agricultural inputs, post-harvest handling and storage, agro-processing, quality assurance and market access.
“The objective is to move Uganda from exporting raw commodities to value-added agricultural products,” he said.
The agriculture sector remains a critical pillar of the government’s broader strategy of full monetisation of the economy through commercial agriculture, industrialisation, digital transformation and expanded market access.
