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Bududa District is bordered by Sironko District to the north, the Republic of Kenya to the east, Manafwa District to the south and Mbale District to the west. The district headquarters at Bududa are located approximately 23 kilometres (14 mi), by road, southeast of Mbale, the largest city in the sub-region. The coordinates of the district are: 01 01N, 34 20E.

Bududa District is a relatively new district that was created in 2006, by Act of Parliament. It was originally part of the greater Mbale District and then Manafwa District. The district consists of one county, sixteen (16) sub-counties and one town council. It is largely a rural district with eight urban growth centers which are in the process of turning into town councils.