The government is set to introduce a major overhaul of its public procurement system beginning July 1, 2026, with all Ministries, Departments and Agencies (MDAs) and Local Governments required to adopt collaborative procurement for commonly used items.
The reform, which will cover purchases such as stationery, computers, vehicles and other common user items, is aimed at reducing wastage of public funds, eliminating overpricing, improving quality standards and ensuring value for money across government institutions.
Under the new arrangement, common goods and services will be procured in bulk on behalf of all requesting MDAs and Local Governments, replacing the current system where individual entities independently conduct procurement processes for similar items.
Permanent Secretary and Secretary to the Treasury (PSST) Dr. Ramathan Ggoobi said the reform is part of broader government efforts to enhance efficiency, transparency and accountability in public spending.
According to Dr. Ggoobi, collaborative procurement will help government leverage its purchasing power to negotiate better prices while ensuring uniform standards and quality across institutions.
“This reform will remove middlemen in procurement and also cut down on the lead time. If government is buying similar things like cars and computers, there is no need for each entity to look for bidders,” he said.
The move is expected to generate significant savings by taking advantage of economies of scale, a strategy widely used by large organizations to lower procurement costs through bulk purchasing.
Officials say the reform will also strengthen oversight and reduce opportunities for corruption by minimizing multiple procurement processes for the same categories of goods and services.
The centralized approach is expected to make it easier to monitor spending, standardize prices and prevent inflated contracts that have often been cited as a source of financial loss in government operations.
The collaborative procurement framework forms part of ongoing public finance management reforms aimed at improving service delivery and ensuring prudent use of taxpayer resources.
Government believes that by consolidating demand for common user items, procurement cycles will become faster and more predictable, allowing institutions to focus more on their core mandates rather than lengthy tendering processes.
The reform is expected to take effect shortly after the new government assumes office, marking one of the most significant changes in Uganda’s public procurement system in recent years.
If successfully implemented, officials say the initiative could become a key tool in the fight against corruption while helping government achieve greater efficiency and value in public expenditure.
