Local government is an integral part of the democratic governmental system that has emerged in Uganda since the 1850s. The new local government dispensation seeks to enhance the participation of the local citizenry and civil service organisations in local governance thereby providing a legitimate vehicle for democratic expression. It is generally accepted that a process of decentralisation should probably best be judged against its objectives to build a sustainable municipal service while providing services efficiently and effectively and at the same time addressing poverty and sustainable growth. However, the link between decentralisation and empowerment through poverty reduction is not automatic and issues of corruption and abysmal levels of local revenue basically erodes the autonomy of local government. Consequently, the focus should be on efficiency and effectiveness and the system of decentralisation through devolution provides