The Ugandan government is reviving its plan to relocate public offices from Kampala to Entebbe as part of a broader strategy to ease congestion, cut rental costs, and improve efficiency. This move aligns with earlier government efforts to establish a centralized government campus and reduce reliance on privately-owned office spaces.
State Minister for Privatization and Investment Evelyn Anite confirmed that the government has allocated 150 acres of land in Entebbe to Chinese investors for the construction of modern facilities. These developments are expected to support the transformation of Entebbe into an “alternative capital city.”
“Unless you are in a government-constructed facility, that office will have to move to Entebbe,” Ms Anite said after meeting Chinese investors in Kampala over the weekend.
Kampala, Uganda’s capital, has long struggled with overpopulation, heavy traffic, and inadequate infrastructure. The city’s rapid urban growth has led to increased congestion, making it difficult for both government institutions and businesses to operate efficiently.
By relocating government offices, the government aims to decentralize administrative functions and reduce pressure on Kampala’s infrastructure.
“Along with the President, we saw this as a strategic move to decongest Kampala. “Additionally, its proximity to the airport makes it convenient for international visitors and expatriates requiring high-quality amenities,” Ms. Anite explained.
One of the driving forces behind this plan is the high cost of renting office space from private homeowners. Many government ministries and agencies operate in privately-owned buildings, leading to substantial financial burdens on taxpayers.
This is not a new issue. In 2018, the government announced that ministries and agencies would eventually be housed in a one-stop government campus in Bwebajja, Entebbe. However, delays in implementation have led to continued spending on private rentals.
According to Kira Municipality MP Ibrahim Ssemujju Nganda, government agencies currently pay a staggering Shs2.9 billion per month in rent to private property owners, with a significant portion going to city tycoon Sudhir Ruparelia’s companies.
“We must ask why Sudhir keeps getting these government rental contracts. He is making billions every month from government agencies, yet we are being told the government wants to cut rental costs,” Ssemujju argued.
The relocation plan is also tied to the government’s broader vision of transforming Entebbe into a modern administrative hub. The 150-acre land allocation to Chinese investors is expected to facilitate this transition.
Some time ago, Mr. “Paul Zhang approached me with a proposal to build an international conference center along with other amenities such as hospitals, international schools, and modern housing in Entebbe,” Ms Anite said. Mr Zhang, an investor from Tian Tang Group, revealed that his company would invest up to $500 million (Shs1.8 trillion) in the initiative to build a “modern city” in Entebbe.
“While Kampala offers assured profits, Entebbe is an old city that needs modernization. It houses the State House and the UN East Africa headquarters,” Zhang noted.
Government officials argue that the move to Entebbe will attract investors and create employment opportunities. The construction of a five-star hotel, an international school, and a modern business district is expected to generate jobs and stimulate local economic growth. “By working together, we can transform more cities, just like we did with the Mbale Industrial Park,” Zhang said, referring to his previous investment.
Ms Anite emphasized that offering land to foreign investors is a deliberate government strategy to drive economic expansion. “This is an incentive we offer to investors to encourage job creation, broaden the tax base, and drive economic growth,” she said.
While the government defends the move, opposition lawmakers and other stakeholders criticize the relocation plan as a misplaced priority. They argue that Uganda has more urgent needs, such as improving healthcare, education, and infrastructure, rather than shifting administrative offices.
“The government should be focusing on fixing hospitals, schools, and roads instead of wasting resources on moving offices,” an opposition MP stated.
Additionally, concerns over transparency have surfaced, with critics questioning the real motives behind the relocation. Some fear powerful individuals could benefit financially from the government’s office relocations and land allocations.
The revival of the government’s plan to move offices from Kampala to Entebbe is driven by a combination of efficiency goals, cost-cutting measures, and urban development strategies. While supporters believe it will decongest Kampala and attract investment, critics argue that it diverts attention from more pressing national issues.