Uganda's decentralisation policy, at first regarded as a paradigm of grassroots democratisation and participatory development aimed at transferring power and control to grassroots institutions, is now increasingly compromised by a combination of political, institutional, and fiscal limitations, thereby resulting in a decline of local autonomy, accountability, and citizen engagement. This research examines the decline of grassroots governance in Uganda, focusing on a detailed case study of the Sironko District Local Government. Utilising 30 key informant interviews, six focus group discussions, document analysis, and field observations, the research demonstrates that political interference, fiscal dependence on central transfers, administrative capacity deficits, and declining citizen participation have collectively undermined the functionality and legitimacy of local government institutions. By employing a qualitative case study methodology of principal-agent and participatory governance theories to elucidate the functional incapacitation of decentralised structures despite their formal integrity. The paper demonstrates that grassroots institutions function with restricted autonomy, procedural involvement, and minimal downward accountability, which ultimately perpetuates a cycle of institutional dysfunction and public disillusionment as factors in the decline of grassroots governance in the context of Uganda's decentralisation framework, focusing on Sironko District as a representative empirical case. Principal findings underscore political meddling by central authorities, insufficient fiscal decentralisation, diminishing citizen participation, and the appropriation of local institutions by elite interests. The paper concludes with recommendations for structural, fiscal, and democratic reforms intended to enhance local governance and re-establish citizen-centred accountability within Uganda's decentralisation framework. Moreover, deficiencies in capacity among local council leaders and inadequate transparency in resource distribution have undermined community trust and service provision. The paper contends that the present trajectory indicates a decline from democratic local governance towards a more centralised and patronage-orientated structure. This jeopardises the developmental purpose of local governments and undermines inclusive involvement and accountability. Keywords: Local Government, Political Interference, Grassroots Governance, Decentralization, Ugandan Government,