Uganda’s inequality gap narrows as poverty persists in pockets

Uganda National Household Survey 2023/24 uncovers mixed economic realities

Kampala, Uganda | JULIUS BUSINGE | The latest Uganda National Household Survey (UNHS) 2023/24 has painted a complex picture of Uganda’s socio-economic landscape, revealing promising strides in income equality and service access, while also spotlighting persistent poverty and stark regional disparities.

According to findings released by the Uganda Bureau of Statistics (UBOS) on May 15 in Kampala, income inequality in Uganda has significantly declined, with the national Gini coefficient falling from 0.413 in 2019/20 to 0.382 in 2023/24. This drop indicates a more equitable distribution of income across the population. Rural areas saw their Gini index decline to 0.351, while urban areas dropped to 0.384, signaling positive shifts across both demographics.

Notably, regions like Buganda South, Elgon, Karamoja, and Lango registered some of the most substantial reductions in income inequality. For example, Buganda South’s Gini index fell sharply from 0.428 to 0.304, and Elgon dropped from 0.372 to 0.303, suggesting improved access to economic opportunities or more balanced wealth distribution.

Karamoja, Busoga, Bukedi and Teso leads in poverty

However, despite the progress on inequality, poverty remains deeply entrenched in many parts of the country. Nationally, 16.1% of Ugandans still live below the absolute poverty line, defined as living on less than one U.S. dollar per day. This translates to approximately 7 million people.

Karamoja remains Uganda’s most impoverished region, with a staggering 74.2% of its population below the poverty line. It also has the widest poverty gap at 31.5%, meaning an extensive financial intervention would be needed to lift the region’s poorest out of destitution. Busoga, Bukedi, and Teso follow with poverty rates nearing or exceeding 30%, highlighting the need for targeted regional development policies.

In stark contrast, Kampala recorded the lowest poverty incidence at just 1.1%, requiring minimal intervention (0.3% poverty gap) to eliminate extreme poverty. Regions like Ankole and Buganda South also reported low poverty rates of 3.2% and 6.0%, respectively.

The 2023/24 Uganda National Household Survey shows a structural shift in Uganda’s labor market, with the services sector now employing the largest share of the labor force at 47.3%. This marks a continued upward trend from 39.8% in 2019/20 and 35.8% in 2016/17, reflecting urbanization and growth in education, health, retail, and financial services.

Agriculture, forestry, and fishing, which previously dominated employment, now account for 40.1% of workers, down from 50.3% in 2019/20. This suggests a migration of labor away from subsistence agriculture toward other sectors, possibly influenced by increased urbanization and changing economic dynamics.

Industry, including manufacturing and construction, employs just 12.6% of the workforce. This modest share shows little progress over recent years and underscores the slow pace of industrial development in Uganda’s job market.

In terms of health, 82% of individuals who fell ill sought medical care, with private hospitals and clinics handling over half of all reported cases. However, access barriers persist. Approximately 12% of the sick did not seek care, citing reasons such as mild illness, self-medication, lack of funds, or long distances to health facilities. Still, an encouraging 90% of Ugandans now live within five kilometers of a health facility, compared to 86% in 2016/17.

The education sector presents a mixed report. While primary school gross enrolment improved slightly to 119.5% nationally, net enrolment dropped to 77.9% from 80% in 2019/20. This indicates a growing number of over-aged or under-aged children enrolled at primary level, and a notable dropout or late school entry problem. Secondary school enrolment figures are more concerning: gross enrolment fell to 33.6% and net enrolment declined to 23.2%, with girls slightly trailing boys.

Largest portion of income goes to food

On the expenditure front, Ugandan households continue to spend the largest portion of their income on food and non-alcoholic beverages—44.2% nationally, and over 50% in rural areas. Urban households allocate more of their expenditure to housing, transport, and education, while rural households face higher food-related costs, reflecting income disparities and consumption patterns across regions.

The survey further revealed that child poverty is disproportionately high in rural areas, standing at 21.4% compared to 12.9% in urban regions. Regionally, Karamoja again stood out, with an alarming child poverty rate of 77.7%, reinforcing the need for urgent child-focused interventions.

Conducted between 2023 and early 2024, the UNHS is Uganda’s eighth such comprehensive household survey since 1999/2000. The report gathered data from over 17,000 households across 14 sub-regions and three refugee strata. The results provide a crucial baseline for Uganda’s development planning, policy design, and program targeting aligned with national and international development frameworks.