The decision is part of a massive reorganisation of government and realignment of functions.

Over 70 Executive Directors and several hundreds of employees in government agencies will lose their jobs in the new restructuring.

The agencies have been taking about 37% of the entire national wage bill and the move is expected to cut costs by UGX988bn, according to government officials.

Also Read: The legacy of Kirumira that earned him admirers and enemies

"Certainly the restructuring will abolish some jobs, but it will also create some more jobs if you remove the duplicated functions, you will create some more," Minister Frank Tumwebaze said.

The government says rationalizing of agencies, commission and authorities will harmonise wages and eliminate functional overlaps in government institutions

Is the decision taking effect immediately?

ICT and National Guidance Minister Frank Tumwebaze told reporters in Kampala that the decision of the Cabinet will not take effect immediately.

"The merger will take effect when the legal framework has been harmonized," he said.

Full list:

Dissolved agencies

Uganda National Roads Authority

Uganda Road Fund

Uganda Railways Corporation

Transport Licensing Board

Uganda Registration Services Bureau

Uganda Electricity Generation Co Limited

Uganda Electricity Transmission Co Limited

Uganda Electricity Distribution Co Limited

Rural Electrification Agency

Lotteries and Gaming Regulatory Board

Departed Asians Properties Custodian Board

National Agricultural Advisory Services Org

Uganda Trypanosomiasis Control Council

Dairy Development Authority

Uganda Coffee Development Authority

Cotton Development Organisation

National Identification & Reg Authority NGO Bureau

National Information Technology Authority

Uganda Aids Commission

National Drug Authority

Uganda Blood Transfusion Services

Uganda Industrial Research Institute

Uganda National Council for Scie & Tech

Uganda Land Commission

Retained

Kampala Capital City Authority

Uganda Communication Commission

Uganda National Bureau of Standards

Uganda Bureau of Statistics

National Medical Stores