Government Bans Civil Servants from Owning Schools and Hospitals

The Government has moved to ban civil servants in the education and health sectors from owning and operating private schools and health facilities.

The decision, effective July 1, 2025, aims to eliminate conflicts of interest that have long undermined service delivery in public institutions.

For years, senior education and medical officers employed by the Government have simultaneously managed private schools, clinics, pharmacies, and hospitals, often prioritizing their private enterprises over their official duties.

Many have been accused of neglecting government facilities while diverting resources, including medicines and equipment, to their private establishments.

Additionally, some medical officers have been found referring patients to their private facilities for services that should be freely available at government hospitals.

Conflict of Interest and Public Service Neglect

The National Development Plan (NDP) IV, which outlines the Government’s strategic direction for the next five years, highlights this issue as a key area for reform.

According to the plan, the ban seeks to ensure that civil servants focus on their core responsibilities, thereby improving service delivery in public schools and hospitals.

Senior officials in the education sector, including headteachers and commissioners, have been running private nursery, primary, and secondary schools while simultaneously overseeing government institutions.

Similarly, medical professionals have been accused of setting up private health facilities, often under pseudo names or proxies, to bypass regulations.

These conflicts of interest have led to the deterioration of public services, as officials devote more time and resources to their personal businesses.

Government Strategy and Implementation

The new directive follows President Yoweri Museveni’s call for the Public Service Ministry to review civil service regulations and address the growing issue of moonlighting among public servants.

The Government aims to ensure equitable resource allocation and improve the quality of education and healthcare services.

A government source explained, “Conflict of interest is especially rampant in the health sector. Many senior health workers are rarely available at public hospitals and instead operate their own facilities.

Patients are often referred to these private establishments to purchase medicines, even when the same drugs are available in government stores. This is unfair and undermines public healthcare.”

The ban is expected to curb such unethical practices and ensure that public servants are fully committed to their roles.

However, there is uncertainty over how the Government will handle civil servants who already own private schools and hospitals.

A senior official suggested that affected individuals might be required to either resign from public service and run their businesses or sell their private facilities to remain in government employment. Cabinet is expected to provide final guidance on this matter.

Challenges in Education and Health Sectors

The Government acknowledges that despite efforts to improve public services, significant challenges remain.

According to NDP IV, the cost of education and healthcare continues to rise due to inefficiencies, population growth, and weak policy implementation.

Currently, households contribute nearly 47% of education funding in Uganda.

The healthcare sector also struggles with affordability, with out-of-pocket expenses still accounting for 29% of total health expenditure.

The country faces severe shortages in both sectors, with only 8,900 doctors serving a population of over 45 million—far below the World Health Organization’s recommended doctor-to-patient ratio.

Similarly, the education sector is short by 78,000 teachers at the primary level and 20,000 at the secondary level.

Way Forward

As part of the broader reforms under NDP IV, the Government aims to strengthen public institutions by eliminating conflicts of interest and enforcing stricter regulations.

By ensuring that civil servants dedicate themselves fully to their roles, the Government hopes to improve the quality of public education and healthcare services and reduce reliance on costly private alternatives.

The policy does not extend to political leaders, but it marks a significant step towards accountability and efficiency in Uganda’s public sector.

The implementation of this directive will be closely monitored, with Cabinet expected to issue further guidelines to ensure a smooth transition.