This study examined the impact of monetary incentives offered to teachers on the academic performance of learners in selected Government Aided Primary schools in Sembabule District. The researcher noted that teaching in a rural government primary school can be an interesting, which can subsequently impact on learners’ academics. The study had three objectives which highlighted the nature of monetary incentives provided to teachers, the cause of the declining trends of learners’ academic performance and the impact of monetary incentives offered to teachers on the trend of academic performance of learners. The research subjects were teachers and head teachers serving in selected government aided primary schools. According to the study, monetary incentive was the independent variable while academic performance was the dependent variable. The research methodology was mixed since it applied both quantitative and qualitative approaches, using closed ended questionnaires and interview guides as research instruments. A simple random sampling technique was used to select ten (10) head teachers and sixty-six (66) teachers out of 80 teachers from ten (10) primary schools in Sembabule District. The quantitative data which was collected was presented using inferential statistics and subsequently analyzed using a Chi–Square test, while qualitative data was analyzed using descriptive statistics. The researcher tested directional hypothesis by comparing two Chi-Square values namely: ChiSquare calculated; which was computed using a standard formula, and the critical Chi-square value which was obtained using a standard distribution statistical table. It was revealed that the calculated value (62.68) was higher than the critical value (9.48). Basing on the two Chi-Square values, the researcher retained the hypothesis and concluded that, monetary incentives offered to primary teachers significantly impact on the academic performance of learners.