Using the Uganda National Panel Survey data of 2009/10 and 2010/11, the paper reveals
significant income mobility as well as movements in and out of consumption poverty in
a period of one year. Of the poor in 2010/11, more than half were new poor households
against the rather strong economic growth – that grew from 5.9 percent in 2009/10 to 6.7
percent in 2010/11. Instead, shocks in terms of drought and ill-health seem to have led
to significant reduction in the household incomes as well as reduction in food production.
Regionally, the incidence of chronic poverty remains higher in the lagging regions of eastern
and northern Uganda, although pockets of chronic poverty are also observed in the more
developed regions. Overall, these results do confirm the dynamic nature of poverty in
Uganda that needs to be considered in designing and any refinement of the government
poverty reduction interventions.