President Museveni has said that 70 percent of Ugandans are now participating in the money economy, crediting four decades of National Resistance Movement (NRM) rule and state-led wealth creation programmes for moving households out of subsistence production.
Speaking at the 40th Liberation Day celebrations at Kololo National Ceremonial Grounds on January 26, 2026, Museveni said Uganda's economic journey had evolved from post-war recovery to diversification, value addition, and more recently, a transition toward a knowledge-based economy.
The celebrations were held under the theme "Tribute to the Patriots who ushered in a fundamental change."
The event came shortly after President Museveni secured another term in office, winning 71 percent of the vote in the recent presidential elections.
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In his address, he thanked God and Ugandans for successfully completing the electoral process and praised NRM members for supporting the party and its flag bearers.
While describing the election outcome as a major political victory, Museveni expressed concern over what he termed low voter turnout among NRM supporters.
Although he received about eight million votes, internal party data suggested many eligible supporters did not cast ballots.
He attributed the low turnout to intimidation by opposition supporters and indiscipline among some NRM leaders, which he said discouraged citizens from fully exercising their civic rights.
On the economy, Museveni said Uganda is currently growing at about seven percent annually, with prospects of faster growth once oil production begins.
He said the start of oil flows would push growth into double digits, noting that Uganda had resisted external pressure to surrender control of its petroleum resources.
Despite strong macroeconomic performance, the President acknowledged that a segment of the population remains trapped in subsistence production, tracing this challenge to colonial economic structures that excluded the majority of Africans from the money economy.
At independence in 1962, only about nine percent of Ugandans were involved in monetised economic activity.
Progress remained slow until the NRM introduced targeted wealth creation programmes.
Early initiatives, such as Entandikwa, provided micro-credit to small entrepreneurs, while later interventions expanded agricultural production.
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By 2013, about 32 percent of households were in the money economy, prompting the launch of Operation Wealth Creation, under which the UPDF distributed agricultural inputs nationwide.
By 2019, the proportion had risen to 61 percent.
Museveni said concerns over elite capture of government programmes led to the introduction of the Parish Development Model (PDM), which channels funds directly to communities.
According to him, the share of Ugandans in the money economy has now increased to 70 percent, leaving about 30 percent still outside.
He warned against misuse of PDM funds, citing cases where local officials diverted money for personal gain.
He said government would amend guidelines, increase funding--especially in urban parishes--and enforce strict accountability, including arrests and prosecutions where necessary.
On governance, Museveni said the fight against corruption would extend to the judiciary, praising Chief Justice Flavian Zeija for taking a firm stance.
He dismissed claims that Uganda has not changed over the last 40 years, highlighting phases of recovery, expansion, diversification, and industrialisation.
He noted that locally made products now dominate supermarket shelves, reflecting growing domestic manufacturing.
The ceremony was attended by top government officials, senior NRM leaders, diplomats, religious and cultural leaders, and former national leaders, as Uganda marked January 26, 1986--the day NRA forces captured Kampala and ushered in a new political era.
