The agreement was negotiated by Alfred Tucker, Bishop of Uganda, and signed, among others, by Katikiro Apollo Kagwa of Buganda on behalf of the Kabaka (Daudi Cwa II), who was still a child at the time, and Sir Harry Johnston on behalf of the British colonial government. 20. During the first two years following the signing of this Agreement, the Kingdom of Uganda shall not pay to the Ugandan Administration an amount of internal taxes equal to half of the amount due in relation to the number of inhabitants; or if he does not pay at any time without valid reason or excuse, the above minimum level of taxation due in relation to the population; or should the Kabaka, the chiefs or the People of Uganda at all times pursue a clearly unfair policy towards the British protectorate; Her Majesty`s Government shall no longer feel bound by the terms of this Agreement. On the other hand, if the revenue from the hut and arms tax exceeds two years with a total value of £45,000 per year, the Kabaka and county chiefs have the right to apply to His Majesty`s Government for an increase in the subsidy for the Kabaka and scholarships for local ministers and chiefs. This increase is proportional to the increase in Aboriginal tax revenues. The agreement stipulated that the Kabaka were to exercise direct domination over the buganda natives, who administered justice through the Lukiiko and its officials.  He also cemented the power of the bakungu clientele chiefs, largely Protestant, led by Kagwa. The British sent only a few officials to administer the country and relied mainly on the Bakungu chiefs. For decades, they were favored for their political skills, Christianity, friendly relations with the British, ability to raise taxes, and Entebbe`s proximity to the Ugandan capital. In the 1920s, British administrators were more confident and had less need for military or administrative support.
 Unlike the treaties of 1893 and 1894, the Uganda Agreement of 1900 contained clear boundaries of the Ugandan kingdom, a land ownership system, and a fiscal policy.  Article 6 dealt with Kabaka`s payments to the chief of Sazza. This was a new development in the Ganda administration. The three regents were entitled to $400 a year until the young king woke up. Kabaka is expected to receive $400 a year, Sazza chiefs $200, three state officials – prime minister, chief justice and treasurer – $300 each, while Namasole (Chwa`s mother) is expected to receive $50. It was an annual cottage tax and the firearms tax. The signing in 1900 took place after years of negotiations under the leadership of Bishop Alfred Tucker. It is not surprising that the Anglican Church, under the aegis of the Church`s Missionary Society, took the lion`s share of the new government after the signing of the agreement. The agreement had three sections: power-sharing, the public financial system, and the country.
But there were difficulties because Kabaka Chwa was just a miner who was not involved in the negotiations. The Uganda Agreement (or the Treaty of Mengo) of March 1900 formalized relations between the Kingdom of Uganda and the British Protectorate of Uganda.  It was amended by the Buganda Agreement of 1955 and the Buganda Agreement of 1961. The Kingdom of Uganda is subject to the same customs regulations, portage regulations, etc., which can be introduced with His Majesty`s consent for the Protectorate of Uganda in general, which in a sense can be called external taxation, but the indigenous peoples of the province of Uganda cannot be subject to any national tax other than the hut tax without the consent of the Kabaka. who is guided in this matter by the majority of the votes of his home counsel. As for the allocation of the 8,000 square miles among the 1,000 private landowners, this will be a matter that will have to be left to the decision of the Lukiko, with an appeal to the Kabaka. The Lukiko is authorized to decide on the validity of claims, the number of applicants and the amount of land granted, provided that the total amount of land so allocated to chiefs and granted to indigenous landowners of the land cannot exceed 8,000 square miles. .