MBARARA CITY, June 6, 2025 – Mbarara City Council has once again been ranked the best-performing local government in Uganda for local revenue collection and utilisation.
According to Mayor Robert Mugabe Kakyebezi, the ranking was conducted by the World Bank in collaboration with the Ministry of Lands, Housing and Urban Development. The assessment focused on cities, municipalities, and district local governments with regard to environmental conservation, proper revenue use, and the effective utilisation of Uganda Support to Municipal Infrastructure Development [USMID] project funds.
“Mbarara City emerged as the overall winner in the category of local revenue collection and utilisation,” said Mayor Kakyebezi. “Mubende was recognised for completing road construction on time, while Masaka City was commended for its sustainable tree planting and management efforts, despite the challenges posed by climate change.”
Mayor Kakyebezi attributed Mbarara’s strong performance to the collective efforts of the business community, city technocrats, politicians, and media.
“I want to thank all stakeholders in Mbarara City, including Mbarara City Council and the media, for sensitising the public about the importance of tax compliance, which has enabled us to win this award,” he said.
Bonny Tashobya Karutsya, Speaker of Mbarara City Council, noted that the city has maintained its top position in local revenue collection and utilisation for four consecutive years.
“This is not new for Mbarara City; it’s now the fourth year in a row we have received this performance award,” he stated. “I would like to thank the council, the town clerk, and the mayor for their continued commitment to this success.” He encouraged stakeholders to further strengthen their efforts in tax mobilisation.
Key drivers of success
Speaker Tashobya attributed the city’s consistent performance to staff dedication and prudent management of financial resources, particularly USMID funds allocated to the regional city.
He also highlighted the city’s decision to invest in infrastructure, notably the purchase of road equipment in 2021. “We committed part of our local revenue to acquire a grader worth UGX 1,019,520,000 to rehabilitate dilapidated roads,” he said. “This machine has helped us open new roads in areas like Butagasi–Kyarwabuganda and Rwemiyaga in Rwenjeru, as well as support the construction of schools such as Nyamityobora Primary School and staff housing at Biharwe Muslim Primary School.”
Tashobya further noted that improved garbage management and the increase in local revenue collection from Shs 2.5 billion to Shs 10 billion have been instrumental in the city’s success.
“Clearing garbage from the city centre and efficiently utilising our growing revenue base is what has set Mbarara apart nationally,” he added.
Revenue collection system reform
Ronald Taremwa Bamuhayira, Secretary for Finance and Administration, credited the automation of local revenue collection for the city’s improved performance.
“With the implementation of the Integrated Revenue Administration System (IRAS), collected funds are transferred directly to the Uganda Revenue Authority account at the Bank of Uganda,” he explained. “This ensures transparency and builds taxpayer confidence in the safety of their contributions.”
He added that the system has significantly reduced revenue leakages and introduced uniformity in tax assessment and payment. “Automated assessments prevent informal negotiations and ensure a standardised approach across the business community.”
Public cooperation and future plans
Town Clerk Justine Barekye thanked residents of Mbarara City for voluntarily paying taxes but acknowledged the role of enforcement.
“By nature, people are reluctant to pay taxes, which is why we have a robust enforcement team working day and night. I appreciate the citizens who comply voluntarily, but where we face resistance, we step in to ensure compliance,” Barekye said.
For the 2025/2026 financial year, Mbarara City’s projected budget stands at Shs 49.32 billion, of which Shs 10 billion is expected from local revenue mobilisation.
https://thecooperator.news/mbarara-city-council-approves-shs-49bln-budget-for-fy-2025-2026/
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