Urban Uganda's educational system faces significant challenges, particularly in urban settings where the informal sector plays a crucial role. A mixed-methods approach combining qualitative interviews with quantitative data analysis on student performance indicators. The informal sector significantly affects access to quality education, particularly for urban youth from lower-income backgrounds. Policy interventions focusing on improving access to formal-sector opportunities and enhancing informal sector engagement in educational development are necessary. Develop targeted scholarships and mentorship programmes within the informal sector; implement policies that recognise informal sector contributions to education.