The Sector Capacity Division falls under the Policy and Planning Department of the MWE, with the overall responsibility of providing strategic guidance and reporting on capacity development interventions in the Water and Environment sector in Uganda. The overall function of the Division is to coordinate, monitor, supervise and report on capacity development across the Water and Environment sector in general, including mobilization of resources for sector capacity development. The roles and responsibilities of the latter cuts across the sector, and focuses on the strategic capacity development interventions, that goes beyond training of individual personnel, to encompass institutional development and the enabling environment. The key outputs of the SCD Division are: Sector Capacity Development strategy developed, monitored, coordinated and implemented, Sector Capacity Development and Training Policies and procedures in place, Sector training and capacity development needs assessment reports prepared, Funds mobilized for Sector Capacity Development and Annual Sector capacity development reports.

Since the approval of the revised structure for the MWE in 2014 that elevated the training and capacity development function from a training section to Capacity Development Division, key capacity development documents have been developed to streamline and guide implementation of capacity development in the sector, and these include among others the Water and Environment Sector Capacity Development Strategy (2013/18), HandBook and ToolBox for Operationalisation of the W+E Sector Capacity Development Strategy, Costed Capacity Development Plans for the various sub sectors, Operational Manuals and Guidelines  Borehole Siting and Hydrogeological Investigations, Borehole Siting, Construction, Drilling Supervision and Test pumping, Solar Powered Water Systems Design Manual(Annex to Water Supply Design Manual Second Edition (2013), National Framework for Human Capacity Development in the Water and Sanitation Sector in Uganda(2019), Training Plan for the Ministry of Water and Environment(2018/2023), and other documents.