Finance ministry streamlines LG political leaders' allowances.

KAMPALA - Following the conclusion of the recent general elections, the finance ministry has announced a major reform in the budgeting and administration of political leaders’ allowances.

According to the budget circular dated February 13, 2026, issued to all accounting officers, starting in the financial year 2026/27, the previously separate ex gratia and councillors’ honoraria sub-grants have been merged into a single sub-grant.  

The consolidation, finance permanent Secretary Ramathan Ggoobi said, is designed to streamline the budgeting process, clarify fund allocations, and enhance the efficiency of payments at the Local Government level.

The Local government political leaders include councillors, LC1, LC2, LC3 and LC5 chairpersons and mayors.  

According to local government minister Raphael Magyezi, chairpersons at the parish and village levels receive a monthly remuneration of shillings 10,000; LC3 receives shillings 380,000 while sub-county chairpersons receive 400,000, and 35,000 for sub-county councillors.

Municipal, city and district councillors are paid shillings 250,000 per month, subject to tax. Speakers and deputy speakers across various levels range from shillings 300,000 to 600,000, while members of the city and district executive committee receive 600,000 per month. City and district chairpersons earn shillings two million. The money is subject to tax.

The monthly earnings for Speakers and Deputy Speakers across various levels is shillings 300,000, depending on the revenue collection.

Ggoobi emphasised that the move will simplify administration and reduce the risk of errors or delays in disbursing funds to political leaders.

“This initiative is part of our commitment to ensure that Local Governments have clear and efficient systems for managing allowances. By merging the ex gratia and councillors’ honoraria into a single sub-grant, we eliminate duplication and improve oversight,” Ggoobi said.

He assured the accounting officers that adequate funds have been provided in the budget for Financial Year 2026/27, and he expects no shortfalls.

He directed all Accounting Officers at Local Governments to budget appropriately for political leaders and to ensure that allocations are placed under the correct item lines.

He warned that improper budgeting or misallocation could result in limitations during budget execution, affecting the timely payment of allowances to councillors and other political leaders.

“This is a proactive step to safeguard the financial management of political allowances and to ensure that all entitlements are met promptly,” he said.

By consolidating the sub-grants, the Ministry hopes to strengthen oversight and make it easier for stakeholders to track the disbursement of funds.

Local Government minister Magyezi welcomed the move, saying it will help resolve the issue of unpaid ex gratia for leaders.

In 2024, while appearing before the Parliamentary Committee on Local Government, Magyezi said he would receive a 100 per cent pay increment if the proposal is approved and implemented.

Magyezi said the proposal to increase the leaders’ pay had already received a green light from President Yoweri Museveni and only awaits approval of Cabinet and Parliament.

Magyezi, on March 5, 2025, told New Vision Online that the matter was presented in Cabinet and forwarded to a cabinet sub-committee for further discussion.

“The subcommittee is composed of permanent secretaries of the ministries of finance, public service and local government. We are still waiting for their report,” Magyezi said.
Kyegegwa district LC5 chairperson Byamukama Kisoke John said local government leaders have been pleading with the Government to increase their salaries, but to no avail.

“We have been requesting the Government to increase our salary, but to no avail. Imagine I supervise and monitor government programmes and service delivery in 19 sub-counties, 700 villages and 81 parishes, yet an MP who represents only 5 sub-counties earns over sh40m, and I am paid shillings two million.  

I traverse these places even when I don’t have an official vehicle.  We are actually suffering. When I read this information on social media, it did not excite me because I know even the increment will not help much,” he said.