It is often claimed that decentralisation is effective for the reduction of poverty due to inherent opportunities for higher popular participation and increased efficiency in public service delivery. This paper is a qualitative assessment of the potential of the Ugandan decentralisation reform for poverty alleviation. The Ugandan government initiated an ambitious decentralisation reform in 1992, which represents an example of full-fledged devolution with the transfer of far-reaching responsibilities to local governments. However, several shortcomings, such as low levels of accountability, insufficient human and financial resources, corruption, patronage, and central resistance to decentralisation, constrain the proper implementation of the reform, putting improvements in participation and efficiency at risk and ultimately jeopardising the intended impact on poverty.