By Spy Uganda
Government-owned secondary schools and tertiary institutions are employing nearly 10,000 teachers outside the official government payroll, accumulating billions of shillings in unpaid obligations and struggling to collect school fees, a situation the Auditor General warns is steadily undermining the quality of education in Uganda.
In his December 2025 report to Parliament, Auditor General Edward Akol paints a troubling picture of overstretched institutions grappling with chronic staffing shortages, rising debt and weak financial controls.
The audit reviewed operations in 498 secondary schools and 116 tertiary institutions covering Financial Years 2022/23 and 2023/24, as well as Academic Years 2023 and 2024, generating 1,228 audit reports.
Financial statements from 255 secondary schools show payables increasing from UGX35.6 billion in 2023 to UGX36.8 billion in 2024, a 3 percent rise. Meanwhile, 49 tertiary institutions recorded a sharper increase, with payables growing from UGX6.4 billion to UGX7.7 billion, representing a 21 percent jump.
Akol attributes the growing debt burden to weak enforcement of financial commitment controls, delayed government funding releases and shortfalls in school fee collections.
Failure to properly manage financial commitments, he warns, exposes institutions to litigation, reputational risks and additional costs that could ultimately become a liability for government, particularly as some institutions transition into repurposed entities.
“The Accounting Officers should enforce financial commitment controls, prioritise essential payments and strengthen internal revenue collection,” Akol advised.
The audit also revealed rising receivables, money owed by students but not recovered by schools.
In 278 secondary schools, receivables rose from UGX28.4 billion in 2023 to UGX30.5 billion in 2024, a 7 percent increase. Among 57 tertiary institutions, receivables grew by 14 percent, from UGX5.17 billion to UGX5.9 billion.
Accounting officers cited widespread financial hardship among parents, political interference discouraging strict fee enforcement, negative community perceptions and policy limitations that restrict penalties for non-payment.
Akol recommended structured payment plans, adoption of digital payment platforms, establishment of recovery committees and enforcement of exam clearance requirements to improve compliance.
The report highlights significant staffing shortages across public institutions.
During Academic Year 2024, only 11,665 teachers, representing 65 percent of the required 17,894 positions, were filled across 238 secondary schools.
At tertiary level, only 2,283 positions, or 57 percent of the required 4,026 staff, were filled.
To bridge the gap, 231 secondary schools hired 8,628 staff outside the government payroll at a cost of UGX61.3 billion, accumulating salary arrears of UGX1.6 billion.
Similarly, 48 tertiary institutions recruited 1,367 off-payroll staff costing UGX7.26 billion, resulting in nearly UGX73 million in arrears.
The staffing crisis is compounded by structural inconsistencies. A review of 65 secondary schools found that while minimum teacher-student ratios required 5,461 teachers, approved staffing structures allowed for only 3,517, leaving a substantial deficit.
Additionally, 221 secondary schools recorded classroom-to-student ratios exceeding the recommended 1:60, leading to overcrowding that strains infrastructure and negatively affects learning outcomes.
School administrators attributed recruitment delays to local government wage bill constraints, prolonged approval processes involving the Ministry of Education and Sports and the Education Service Commission, and slow administrative clearances.
In seven sampled institutions, 68 vacant teaching positions caused by transfers or retirements remained unfilled as of December 2024 despite requiring no additional wage allocation. Akol noted that unused wage balances are often returned to the Treasury even as classrooms remain understaffed.
“This situation highlights systemic control weaknesses in staff recruitment, appointment and deployment processes,” he observed, warning that overstretched teachers face burnout while schools shift financial pressures onto parents through increased fees.
The audit also identified serious infrastructure gaps. At least 193 secondary schools lacked the minimum four staff housing units, while 176 schools exceeded the recommended desk-to-student ratio of 1:3.
Additionally, 36 secondary schools and 11 tertiary institutions lacked land titles for 55 parcels totaling 1,214 acres, exposing public property to encroachment risks.
Headteachers blamed ownership disputes, shared land arrangements and lengthy administrative procedures for delays in land titling.
Meanwhile, 23 Primary Teacher Colleges earmarked for repurposing into Technical and Vocational Education and Training centres remain idle without deployed staff or operational budgets, raising concerns about deteriorating public infrastructure.
Funding gaps continue to strain service delivery.
In Academic Year 2023, secondary schools received UGX713.86 billion against an approved UGX784.64 billion, leaving a 9 percent shortfall. In 2024, institutions received UGX862.8 billion out of UGX932.19 billion, representing a 7.5 percent deficit.
The audit questions how persistent underfunding affects service delivery as institutions struggle to balance wage obligations, infrastructure needs and operational costs.
The findings portray an education system under sustained pressure, with rising debts, weak revenue collection, staffing shortages and infrastructure deficits converging to threaten education quality.
With nearly 10,000 teachers hired off payroll and billions of shillings in uncollected fees, the Auditor General’s report raises urgent questions about financial discipline, workforce planning and budget credibility within Uganda’s public education system.
