This study was undertaken to evaluate challenges affecting political parties in influencing public policy process in nascent hydrocarbon industry in Uganda. Public policy formulation for the nascent hydrocarbon industry in Uganda is a responsibility of parliament where various political parties are represented. However, the influence of political parties in the formulation of policies that guide the exploration and exploitation of hydrocarbons in Uganda tends to be insignificant. The dynamics in political parties consist of conflicts in political parties. The study objective was to evaluate challenges affecting political parties in influencing public policy process in nascent hydrocarbon industry in Uganda. The researcher applied a descriptive research design and respondents were selected from a cross-section of four political parties (NRM, FDC, UPC & DP). The research adopted both quantitative and qualitative approaches. The target population was 490 and sample size was 218. The researcher used purposive and simple random sampling. The researcher collected both quantitative and qualitative data which was analyzed using descriptive and inferential statistics and thematic content analysis respectively. The findings revealed that political parties face challenges that affect public policy formulation and are a significant determinant of public policy formulation in Uganda’s nascent hydrocarbon industry. The study concludes that there is a strong direct correlation between challenges that affect political parties and public policy formulation. It is concluded that political parties influence public policy formulation in Uganda’s nascent hydrocarbon industry. It is recommended that government should ensure that political parties should emphasize party discipline and numbers in order to increase seats in parliament. Political parties should emphasize discipline among their members such that they toy the party line and vote according to the caucus decision. To improve on public policy formulation, political parties should strengthen party structures, coherence among members and contribute to a strong force in parliament. Political parties in Uganda should address internal party issues and promote internal party democracy.

Keywords: Agenda Setting, Hydrocarbons, Political parties challenges, Public Policy Formulation.