Government commits Shs1.5 trillion to water, sanitation and climate resilience in 2026/27 national budget

Government has committed more than Shs1.5 trillion towards expanding access to safe water, improving sanitation services and strengthening climate resilience as part of efforts to protect livelihoods and sustain economic growth.

Presenting the 2026/27 national budget at Kololo Independence Grounds on Thursday, Finance Minister Henry Musasizi said investments in water infrastructure and environmental protection remain critical for public health, agricultural productivity and climate adaptation.

“Access to clean and safe water remains fundamental to public health, human dignity and economic productivity,” Musasizi told Parliament.

The government has allocated Shs 1.013 trillion to the water and sanitation sector in the coming financial year, while an additional Shs 494.08 billion has been earmarked for environmental protection and climate change interventions.

The allocations come at a time when Uganda is grappling with the effects of climate change, including prolonged droughts, floods, landslides and environmental degradation.

WATER ACCESS EXPANDS

Musasizi reported significant gains in access to clean water during the outgoing financial year.

According to the minister, 71 percent of Ugandan households now have access to improved water sources, with coverage reaching 68 percent in rural areas and 74.5 percent in urban centres.

“Government has continued investing heavily in water supply and sanitation infrastructure across the country,” he said.

During the year, safe water services were extended to 553 villages, bringing clean water closer to thousands of households that previously depended on unsafe sources.

Government also completed more than 200 large solar-powered water and sanitation systems in different parts of the country.

The systems are expected to reduce water shortages, particularly in rural communities that face challenges accessing reliable water supplies.

Several public sanitation facilities and faecal sludge treatment plants were also completed, while urban water systems were expanded to meet the needs of growing populations.

Musasizi said the investments are improving public health outcomes and reducing the burden of water-borne diseases.

The government’s objective in the new financial year is to move steadily towards universal access to safe water and sanitation services.

CLIMATE CHANGE THREAT

The finance minister warned that climate change continues to pose a serious threat to Uganda’s economy, particularly the agriculture sector, which remains heavily dependent on rainfall.

“Sustainable management and use of natural resources, land, water and the environment, as well as effective response to climate change are essential for boosting productivity and value addition,” Musasizi said.

To cushion citizens from climate-related shocks, government invested Shs 9.6 billion during the year in early warning systems, hazard mitigation measures and emergency relief support for affected communities.

Government also expanded investments in water-for-production infrastructure aimed at protecting farmers from drought and supporting year-round agricultural production.

The interventions are part of a broader strategy to build resilience against increasingly unpredictable weather patterns.

WETLAND AND FOREST RESTORATION

Government intensified efforts to restore degraded ecosystems and protect natural resources during the financial year.

According to Musasizi, authorities demarcated 104 kilometres of wetland boundaries and restored 15,000 hectares of degraded wetlands across the country.

In the forestry sector, government demarcated 8,319 hectares of degraded Central Forest Reserves and marked 404 kilometres of forest boundaries to strengthen protection and management efforts.

The minister said environmental degradation poses significant risks to agriculture, water resources and long-term economic sustainability.

As a result, government plans to increase restoration activities during the coming financial year.

The Shs 494.08 billion allocation for environment and climate change will support protection of 1.26 million hectares of forests and wetlands, restoration of 10,000 hectares of degraded wetlands and demarcation of critical riverbanks and lakeshores, particularly along the River Nile.

Government also intends to strengthen meteorological services and climate forecasting systems.

“We will upgrade meteorological services and early warning systems to deliver accurate forecasts for agriculture, aviation and climate monitoring,” Musasizi said.

DISASTER PREPAREDNESS

Recognising the growing frequency of climate-related disasters, government has further allocated Shs 361.88 billion to the Contingency Fund.

The resources will strengthen national disaster preparedness and response capacity in the event of floods, droughts, landslides and other emergencies.

Analysts say the increased funding demonstrates government’s recognition that climate resilience and environmental sustainability are increasingly becoming central pillars of Uganda’s economic transformation agenda.

With agriculture, industry and urban development all dependent on sustainable natural resources, the new investments are expected to play a critical role in supporting the country’s long-term development goals.

The allocations also align with the theme of the 2026/27 budget, which seeks to achieve full monetisation of Uganda’s economy through commercial agriculture, industrialisation, expanded services, digital transformation and market access while safeguarding the natural resources upon which economic growth depends.