The World Bank has approved an $80m (about Shs2.1 trillion) grant to support the second phase of the Uganda Cities and Municipalities Infrastructure Development (UCMID) programme.
The programme will focus on improving urban infrastructure and strengthening institutional capacity in selected local governments.
The minister of Lands, Housing and Urban Development, Judith Nabakooba, said the funding will help enhance urban planning and management while improving access to climate-smart infrastructure, services and jobs.
Nabakooba said the programme will run for six years, from the 2026/2027 financial year to 2030/2031.
She said it will cover 10 regional cities, 26 municipalities and 13 refugee-hosting districts, benefiting an estimated 5.6 million people.
She listed Lira, Gulu, Soroti, Mbale, Hoima, Fort Portal, Jinja, Mbarara and Masaka among the areas set to benefit.
She said the first phase of the programme delivered key infrastructure, including roads, bridges, drainage systems, markets, parking spaces, street lighting and walkways.
According to the ministry, the programme has created more than 20,000 permanent jobs through various projects.
Nabakooba said the second phase will continue to focus on cities and municipalities outside the Kampala Metropolitan Area.
The ministry also noted that Uganda is urbanising rapidly, with about 27% of the population now living in urban areas.
Urban growth is estimated at 5.2% annually, increasing pressure on infrastructure and services.
