Despite the successful implementation of the Universal Secondary Education policy in Uganda in 2007, overall secondary school enrolments have remained low, especially for girls. Among other reasons, high cost of schooling is cited as the major constraint limiting access to secondary education. Uganda’s National Development Plan proposes to attain gender equity in secondary school enrolments through the provision of bursaries/stipends to poor girls to enable them attend school. In this study, we examine the potential impacts of this policy proposal (policy I) and compare it with the alternative of providing free transport on top of the stipends (policy II). The findings indicate that both policy proposals would generate net benefits to society but more benefits would accrue to provision of tuition stipends only. Compared to policy II, policy I is more cost effective and therefore the preferred policy option.