Local revenue reform in Kampala

Investment in infrastructure to steer city development onto the right path is crucial to build a productive city. However, it is also very costly and difficult to finance. Local authorities’ performance in revenue collection is therefore a major determinant of successful urbanisation. With this context, this project seeks to inform reforms of local revenue collection by the Kampala Capital City Authority (KCCA) by analysing current revenue collection policies, as well as operational and governance issues affecting collection. Special attention was paid to the reform of property tax, for which at the time of writing a mass property valuation exercise and a major overhaul of collection procedures was in the planning stages.

Since its inception as an authority, the KCCA has managed to double revenues collected, as a result of removing tax exemptions, improving collection processes as well as introducing e-filing and e-payment systems. The authority has reached a stage in its reforms where further improvements require more demanding collection changes such as the use of GIS data, the renewal of the land registry and the fiscal cadastre and an improved link with other agencies such as the Uganda Revenue Authority. The aim of this project is to advise on reform plans, their potential revenue impact and the legislative changes these require. In providing recommendations the PI draws on his extensive international experience in the area of local revenue collection and the applied public finance literature.