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The Auditor General has raised fresh concerns over the implementation of Uganda’s multi-billion Farm Income Enhancement and Forestry Conservation (FIEFOC) projects, exposing funding shortfalls, delayed implementation of planned activities, outstanding receivables running into billions of shillings and significant unspent funds despite the programmes being established to improve food security, boost farm incomes and strengthen climate resilience.The findings are contained in the December 2025 Auditor General’s report covering both the Farm Income Enhancement and Forestry Conservation Project Phase II (FIEFOC II) and the Farm Income Enhancement and Forestry Conservation Project III (FIEFOC III), two flagship government programmes being implemented under the Ministry of Water and Environment and the Ministry of Agriculture, Animal Industry and Fisheries with support from international development partners.FIEFOC II, a USD 91.43 million programme financed by the African Development Bank and the Nordic Development Fund, was designed to improve food security and climate resilience through sustainable agriculture and natural resource management. The project targets more than 1.8 million people in Pakwach, Oyam, Butaleja, Kween and Kasese through the construction of major irrigation schemes, promotion of agribusiness development and restoration of degraded landscapes.Despite these ambitious objectives, the Auditor General found that UGX 2.37 billion advanced to 102 agripreneurs remained outstanding and had not been recovered for periods ranging from the 2020/21 financial year to 2024/25, raising concerns over accountability for project funds.The audit further established that although the financing agreement expected total disbursements of UGX 311.92 billion, only UGX 292.46 billion had been received, representing 93.7 percent of the anticipated funding.Project implementation also fell behind expectations. Out of six sampled activities valued at UGX 221.80 billion, only four activities worth UGX 25.77 billion were fully achieved, while the remaining two activities valued at UGX 196.04 billion were only partially implemented.Funding constraints also affected implementation during the financial year. The Auditor General reported that out of the approved budget of UGX 2.31 billion, only UGX 1.65 billion was released for expenditure, leaving a funding shortfall of UGX 660 million, equivalent to a budget performance of 71 percent.Even the funds that were made available were not fully utilised. Out of total available resources amounting to UGX 2.79 billion, including UGX 1.14 billion carried forward from the previous year, only UGX 1.91 billion was spent, leaving UGX 880 million unutilised and translating into an absorption rate of only 68.5 percent.The Auditor General also reviewed the implementation of FIEFOC III, a five-year programme running from 2023 to 2028 with a budget of USD 112.12 million financed by the Islamic Development Bank, BADEA and the Government of Uganda. The project seeks to increase irrigated agriculture over 1,800 hectares, improve food security, raise household incomes and promote sustainable land management through irrigation schemes in Amuru, Gulu, Bulambuli and Nakapiripirit.However, auditors found that implementation had also faced major financial challenges. Out of the expected cumulative funding of UGX 97.91 billion from project commencement to date, only UGX 14.2 billion, representing just 15 percent, had been disbursed.Implementation performance similarly lagged behind planned targets. Of the twelve sampled activities worth UGX 13.43 billion, only seven activities valued at UGX 3.84 billion had been fully achieved. Four activities worth UGX 9.58 billion had only been partially implemented, while one planned activity had not yet commenced.Funding during the 2024/25 financial year also remained well below target. Although the approved budget stood at UGX 40.31 billion, only UGX 16.47 billion was available for spending, creating a funding gap of UGX 23.84 billion and translating into budget performance of just 41 percent.Of the funds released, the project spent UGX 14.81 billion, leaving UGX 1.65 billion unspent and achieving an absorption level of 90 percent.The Auditor General’s findings highlight the implementation challenges facing two flagship agricultural and irrigation programmes intended to transform rural livelihoods, improve food production, strengthen climate resilience and expand irrigation infrastructure across Uganda. The report points to outstanding advances, funding shortfalls, delayed implementation of activities and unspent funds as key issues that continue to affect the pace at which the projects can deliver their intended benefits to farming communities targeted under the programmes.GOT A HOT STORY? 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