Government Schools Stopped from Acquiring Commercial Loans

The Ministry of Education and Sports has stopped government schools from taking loans from commercial banks unless if approved by the Permanent Secretary.

The State Minister for Higher Education, John Chrysostom Muyingo told Parliament on Tuesday that government has come up with measures to prevent both public and private schools from increasing school fees.

“No school, Private or Government, shall increase school fees for whatever reason without written authorization from the Permanent Secretary, Ministry of Education and Sports and/or Chief Administrative Officer/Town Clerk as the case may be,” said Muyingo.

Other cash and non-cash requirements outside the approved school fees structure are also strictly prohibited and all non-cash ordered to be catered for in the school budget.

The guideline is to be observed by schools implementing Universal Primary Education (UPE), Universal Secondary Education (USE) and Universal Post ‘0′ Level Education and Training (UPOLET).

Muyingo noted that in a circumstance where parents decide and agree to contribute towards an emergency in the school and permission is sought and granted by the Permanent Secretary, no learner should be excluded from school on account of a parent’s failure to pay the agreed amount in accordance with Section 9(3) of the Education Act 2008.

“As soon as the emergency is resolved, the school shall stop charging the emergency fund,” said Muyingo.

Adding: “All government aided schools should desist from taking commercial loans. Any school applying for a loan must seek authorization from the Minister of Finance Planning and Economic Development through the Permanent Secretary, Ministry of Education and Sports as provided for in the Public Finance Management Act 2015.”


Day schools have also been stopped from changing their status to boarding until when the change is approved by the Permanent Secretary.

Day schools desirous to operate boarding sections/hostels are meant to seek authorization from the Permanent Secretary.


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