Stakeholder Engagement and Organizational Performance in Semi-Autonomous Government Agencies: An Empirical Analysis in Uganda

Semi-Autonomous Government Agencies (SAGAs) play a critical role in delivering public services with operational independence, yet their effectiveness varies significantly across regions. In Uganda, agencies such as the Uganda Revenue Authority (URA), Uganda National Roads Authority (UNRA), and National Medical Stores (NMS) have demonstrated both commendable achievements and persistent performance challenges. Issues such as corruption, financial mismanagement, and political interference have highlighted the need for stronger governance and stakeholder engagement mechanisms. This study investigates the relationship between stakeholder engagement and organizational performance in Uganda’s SAGAs, with a specific focus on the healthcare sector. It seeks to assess how stakeholder participation influences transparency, efficiency, and service delivery outcomes. Using a mixed-methods approach, the study combined qualitative data from interviews and document reviews with quantitative performance indicators to evaluate stakeholder engagement practices across selected SAGAs, particularly the National Medical Stores. The analysis also incorporated recent audit findings from the Office of the Auditor General for the financial year ending June 2024. Findings indicate that strong stakeholder engagement contributes positively to performance metrics such as supply chain efficiency and accountability. For example, despite infrastructure and funding challenges, the NMS improved essential drug availability in rural areas by over 70%. However, the audit revealed severe issues including UGX 8.9 billion in expired medical supplies and systemic pension overpayments totaling UGX 18.6 billion, reflecting significant lapses in oversight. While stakeholder engagement enhances organizational responsiveness and accountability, its impact is undermined by governance gaps. Addressing these systemic issues is crucial for improving the performance of SAGAs and ensuring sustainable public service delivery in Uganda Keywords: Stakeholder Engagement, Organizational Performance, Semi-Autonomous Government Agencies (SAGAs), and Public Sector Accountability