Project to boost local revenue launched

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The Southern and Eastern Africa Trade Information and Negotiations Institute (SEATINI) has launched a new tax reform project aimed at strengthening domestic revenue collection and easing reliance on foreign aid.

The Sustaining Tax and Revenue Improvements for Development (STRIDE) project, supported by the Embassy of Ireland, was officially launched Thursday at Gold Course Hotel in Kampala. STRIDE seeks to make Uganda’s tax system more equitable and accountable by working with citizens, local governments, and government agencies.

“There is no better time than now to implement this project. Aid is declining. Other countries are focused on their own problems,” Jane Nalunga, the executive director at SEATINI, said.

“We must raise our own revenue. People say some are too poor to pay, but we must find ways to bring more people into the system so it’s not just a few carrying the burden.”

Uganda’s tax-to-GDP ratio remains below regional targets, largely due to inefficiencies in tax collection and an overreliance on indirect taxes, which disproportionately affect low-income households.

STRIDE aims to improve tax collection by expanding the tax base and strengthening revenue systems at both national and subnational levels.

The nine month project will target 10 local governments including municipalities in Mityana, Moroto, and Kotido where tax administration challenges are most acute. It will also engage ministries such as the ministry of finance and Local Government, the Uganda Revenue Authority, and Parliament.

“We expect this project to support income generation from activities such as sunflower and soybean production,” Hon. Kakembo Micheal, a Member of Parliament, said.

“Through such local economic development, we will create a broader tax base in Nakapiripirit.”

The project also aims to address infrastructure gaps that undermine tax compliance and data management.

Jenny Frances Asiimwe Musoke of the Urban Authorities Association of Uganda said many local governments are poorly equipped.

“You cannot expect high tax performance when local officials can’t access or upload data. Without strong IT infrastructure, governments cannot track taxpayers or enforce compliance effectively,” she said.

“Some councils have just one laptop or unreliable internet access.”

STRIDE’s activities include training local officials, supporting civic campaigns to raise tax awareness, and providing digital tools to improve tax data collection and analysis. SEATINI also plans to work with oversight bodies such as Public Accounts Committees to improve accountability in how tax revenue is used.

Nyenje Ronald, Manager, Tax Exemption and Policy Analyst at Uganda Revenue Authority said reliance on external financing is no longer sustainable.

He said conditionalities are tighter and some development partners are withdrawing support.

Lodoume Phillips, a township officer from Nakapiripirit, said public confidence in taxation depends on better service delivery.

“Uganda is a rich country. We can sustain ourselves through domestic revenue. But the issue is: who collects the money and where does it go?” he said.

“The taxpayer needs motivation and that comes from effective service delivery.”

Gideon Longole, Moroto Municipal Council added that conflicting national and local tax rules also make it harder to raise revenue.

“Some companies present national letters to avoid local fees, despite operating in our areas and straining local services,” he said.

The STRIDE project runs until September 2025. SEATINI says it will work with civil society, the private sector, and academia to push for long-term policy reforms in Uganda’s tax system.