Historically, during the past quarter century, decentralization of government has been under way in all parts of the world. Renewed interest in decentralization in developing countries was brought about mainly by the spread of market and democratic principles. There was also consensus that decentralized management creates conditions for sustainable development and poverty reduction. The purpose of this study therefore was to examine the influence of decentralization in public service delivery in Uganda, case study of UMEME. The study used a descriptive research design and adopted a case study strategy. The study population comprised of Employees of UMEME, Kampala. The study considered a population of 100 of UMEME. The sample size of the study was determined by Kreijic and Morgan 1970 sample determination table. The sample size was 80 individuals. Findings from the regression model revealed that the study variables explain 68.4%of the service delivery of UMEME in Uganda. The findings further revealed that decentralization incentives (Beta= .459, Sig. < .000) was a better predictor of the service delivery of SB’s and this was followed by decentralization (Beta = .311, Sig. < .005), and lastly deconcentrating with (Beta=.171, Sig.<.031). This implied that strengthening and improving the existing decentralization policies relating to reconcentration, devolution and decentralization incentives, the service delivery of UMEME improve in Uganda. According to study findings, it was concluded that; “the simplified system of decentralization, decentralization planning and functional expertise, interpretation of decentralization laws and regulations play a fundamental role in enhancing the service delivery.” The researcher therefore recommended that decentralization exemption and issued with a decentralization exemption certificate from URA since such Corporation will demonstrate a good track record of paying the decentralization es on time.