Akame ga Kill! really wants you to understand that the Ultimate Battle between Night Raid and the Jaegars and between the Rebellion and the Empire, is about to begin. Both characters and the narrator mention it at least half a dozen times. They should have also said something along the lines of “these battles are definitely on the way, but bear with us a little while we lay out all the details and get people into their proper positions for said battles.” Or something.
So yeah, this episode is yet more setup. By the end of it, Najenda, Akame, Tatsumi and Leone are engaged with Kurome and Bols, with Susanoo having smacked Wave off the battlefield entirely. It doesn’t seem like either party is going to back down or retreat; this is it. We just don’t get to see any actual fighting quite yet.
We do get a somewhat meandering Rube Goldberg-like plan for overthrowing the Capital and Empire; one that depends on a lot of moving parts which could spell disaster if any of them failed. It starts with a popular religious group starting an insurrection within the empires borders, followed by invasions from without by the Revolutionary Army and its allied tribes.
They’re depending on the zealots being enough of a threat to warrant a sizable movement of Imperial forces in the direction the Revolutionary wants, as well as the cooperation of disillusioned castellans on the route to the Capital to honor their word to yield their castles to the rebels. If everything goes according to plan, the capital will be theirs, its corrupt leaders dispatched, and all with a minimum of bloodshed.
But c’mon now, not everything is going to go according to plan. Neither the rebel army nor Night Raid can do anything without dealing with Esdeath and the Jaegers first (Najenda also name-drops Commander-in-Chief Budou). The episode serves as a means to take stock in each Night Raid member or Jaeger’s specific reasons and motivations for fighting, with Seryu’s probably being the most morally upside-down (though that’s not surprising considering the mentors she’s had).
On the other end of the spectrum is Wave, who isn’t even listed as a target, but he has his own reasons for fighting on the side he’s on. Regardless of whether you’re an otherwise nice guy like him or Bols, or a complete evil psycho like Kurome, they must all be defeated by Night Raid if the rebellion is to have a chance.