Uganda's decision to extend schooling for pre-schoolers may have been intended to give children a better grasp of the basics. But the question of how to fund it is challenging.

The Early Childhood Development (ECD) programme promises better learning outcomes for the country's child population. But the authorities here are facing funding gaps to ensure that the estimated 13 million children benefit from it.

Under the ECD programme, pre-primary education, or nursery school, will be extended by one year to hone young children's learning skills before they enter primary school.

This is a policy response to persistent complaints about the quality of learning outcomes recorded at the pre-primary level.

Expenditure projections accompanying the ECD programme have not yet been made public. Uganda was already facing a huge budgetary burden for nutrition development, which has been increased from Ush5.2 billion ($1.4 million) in the financial year 2024/25 to Ush9.9 billion ($2.7 million) in the financial year 2025/26.

The significant funding gaps facing Uganda's education sector point to major difficulties in financing critical sector activities. For example, the Ministry of Education currently faces a funding gap of Ush309.16 billion ($83.7 million) required to implement free and compulsory universal primary education in the financial year 2025/26, according to parliamentary records.

Read: Education still elusive goal for refugees even with Uganda’s open door policyThe ministry also faces a Ush111.18 billion ($32 million) shortfall in the next financial year for the rehabilitation and expansion of 20 health training institutions across the country. Another shortfall of Ush100 billion ($27 million) is linked to massive rehabilitation of public primary and secondary schools planned for the 2025/26 financial year.“Details surrounding unit costs for the ECD programme are contained in our policy document but the minister is yet to sign off on that item,” said Dr Safina Mutumba, an ECD Specialist at Uganda’s Ministry of Education and Sports.“Children suffering from autism will be handled differently. Those with severe levels of autism will be provided with specialist teachers while those with less crippling levels of autism will be absorbed in mainstream classes.”However, this doesn't address the overall problem of early childhood development.

According to a World Bank bulletin on Uganda, more than half (52 percent) of Ugandan children start school overage, while 60 percent of children enrolled in primary school are underage. It suggests that most parents choose to skip pre-school. Yet eight out of 10 Ugandan children struggle to read at a basic level, according to research data.

Read: Uganda to reopen schools in January, after almost two years“There are some people in government who would tell you that I did not undergo ECD but here I am thriving.“Some parents have bought into this perception, but ECD remains important because it helps improve future learning outcomes,” observed Dr Mary Goretti Nakabugo, Executive Director of UWEZO.

Uganda’s Human Capital Index is estimated at 0.39, which implies that there is a 39 percent chance of success for any child seeking to reach their full potential under the existing economic and social circumstances.

Kenya’s, on the other hand, currently stands at 0.55, according to World Bank research data. This means that Uganda must pump more money into the programme.

However, weak tax collection and rising public debt are major concerns for future financing of the ECD programme. Uganda's tax to gross domestic product (GDP) ratio stood at 13.7 percent at the end of the 2023/24 financial year, compared to an East African Community (EAC) average of 16 percent, according to government data.

Total public debt rose to $25 billion by the end of December 2024, the result of increased domestic borrowing to finance short-term budgetary needs, which included the repayment of a Ush9 trillion ($2.4 billion) debt owed by the Ministry of Finance to the Bank of Uganda (BoU).“Where do we find the money for Early Childhood Development activities? Uganda Revenue Authority (URA) has worked hard to collect more money in taxes, but the big chunk of our tax revenues is generated by just 1,000 people,” said Dr Fred Muhumuza, a local economist.“The national budget may increase every year but 50 percent of it is locked in for debt servicing obligations alone.”Experts say Uganda needs to broaden its tax bracket to sustainably fund this programme.“If foreign currency reserves are being used to clear Uganda’s debt obligations, then collecting more tax revenue becomes inevitable. Everyone must contribute and URA must think outside the box.“That means enforcement must target those that are supposed to pay taxes and avoid those that are exempt under the law,” noted Silver Namunane, a country economist at the World Bank Uganda Office.

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