Business & Management
Mak-RIF Plugs Tax Education Gaps in Uganda’s Informal Sector
According to statistics from the Uganda Revenue Authority (URA) Annual Data Book 2018/19, at 12.44%, Uganda’s average tax to GDP ratio over the last five years is one of the lowest in the region, and far below the sub-Saharan Africa average of 16%. Simply put, the total tax collected by URA has on average over the past five years accounted for only 12.44% of the size of Uganda’s economy. Comparatively, Kenya, Tanzania, Rwanda and Burundi recorded average tax to GDP ratios of 16.10%, 12.83%, 15.80% and 13.55% respectively over the same period.
This should not come as a surprise, given that 2016 statistics from the Uganda Bureau of Statistics (UBOS) indicated that approximately 98% of Uganda’s population of working age (14-64) were engaged in the informal sector. The title of a 2017 article published by the Economic Policy Research Centre (EPRC) based on the same statistics put it aptly, “Informality Growing Faster than Formality”.
Expanding the tax base by tapping into semi-formal economic activities is going to be one of the major focus areas in the Third National Development Plan (NDPIII) 2020/21-2024/25. It is against this background that researchers in the College of Business and Management Sciences (CoBAMS) led by the Principal, Dr. Eria Hisali conducted a study that sought to understand which gaps exist in tax education and how these gaps can be packaged into improving compliance and subsequently broadening the tax base in Uganda.
Funded by the Government of Uganda through the Makerere University Research and Innovations Fund (Mak-RIF) the research undertaken in 2020 targeted over 500 respondents with particular focus on the informal sector. In addition to the Principal Investigator (PI) Dr. Eria Hisali, the research team consisted of Dr. Ismail Kintu, Dr. Fred Bateganya, Ms. Marion Atukunda, Ms. Winfred Nalwoga, Mr. Nicholas Musoke, Mr. Patrick Lumala and Dr. Kagarura Willy.
Speaking at the research dissemination workshop held on 10th February 2021 in the School of Business Conference Room, Dr. Hisali shared that “The research advocates for a comprehensive review of Uganda Revenue Authority’s tax education programme with focus on linking tax collection to better service delivery,”
The research team’s interaction with members of the informal sector revealed that tax education being provided is not well suited to the informal sector. “For instance, tax exhibitions, messages on websites and brochures do not provide the best approach to reach out to the informal sector. The informal sector needs more engagement with emphasis on field visits and face-to-face interaction,” explained Dr. Hisali.
The Principal Investigator however pointed to some quick wins that could be adopted as URA evaluates and updates its tax education programme. He noted that approximately UGX 6 Trillion had been allocated to livelihood programmes by the Government of Uganda between the 2018/19 and current financial years. “How can tax education be included as part of the package that these Government livelihood programmes contain? I think we could see some quick wins because as recipients benefit from livelihood programmes, they could be asked to register as tax payers.”
Findings shared by the research team further revealed a limited coverage of tax education. Whereas 53% had been told or heard about the importance of paying taxes, only 40% had received education on how to register for taxes while only 38% had heard about filing tax returns. Furthermore, only 32% had received tax education on fines and penalties, 29% on the benefits of paying taxes and only 16% on audits and assessments.
Nevertheless, some of the registered respondents who admitted to not paying taxes cited low tax morale as well as poor service delivery and unfairness as reasons for their noncompliance. Researchers further took note of the limited personal touch with potential taxpayers in the informal sector, disconnect between the current taxpayer education modality and unique features of the informal sector, as well as the cost implications and overly technical language in existing modalities as some of the reasons for nonpayment of taxes.
The Study concluded that:
- Majority of the respondents had limited or no knowledge about the Tax Identification Number (TIN), a critical requirement for tax payment. More than half of respondents did not know how to acquire a TIN.
- Actors in the informal sector cannot differentiate between taxes paid to URA and those paid to local governments and other bodies that bring together operators.
- Most respondents did not know how to formalize their business/enterprise, another important factor for tax registration.
- There exists some form of registration of informal businesses/enterprises upon which formalization can build.
- The URA tax education campaigns messaging and targeting has left out some potential tax payers. Messaging and targeting of tax education is key to realizing intended results of growing the tax base and ultimately the tax revenues.
The Research Dissemination attracted participants from URA, Kampala City Traders Association (KACITA), Academia, Private Sector, Civil Society, the Media, Mak-RIF Grants Management Committee (GMC) as well as staff and students from Makerere University.
Painting a picture on the new ideas and innovations to foster a taxpaying culture through tax education, URA’s Mr. Nicholas Musoke who represented the Assistant Commissioner Research Planning and Development-Ms. Milly Nalukwago, noted that whereas Uganda’s population is approximately 45.7million, the taxpayer register stands at only 1.59million. Approximately 953,000 of those registered are active taxpayers, while 906 URA clients pay 80% of the tax. The informal sector currently contributes less than 1% (0.03%) of tax collected.
To help achieve this, URA plans to roll out the AEN strategy. AEN stands for Awareness, Empower and Nurture. Under Awareness, URA intends to intentionally engage the public on tax laws, roles, rights, obligations and opportunities relating to tax. Under Empower, URA will guide taxpayers on their rights as well as how and when to fulfil their tax obligations, while under Nurture, the Authority will set up and support mechanisms to cultivate and maintain a taxpaying culture.
Dr. John Mutenyo who represented the Chairperson of MakRIF GMC- Prof. William Bazeyo in his address commended the Government of Uganda for prioritizing research at Makerere University. “In phase One of Mak-RIF, the Government committed UGX 30billion and this was one of the research projects that
was funded under that phase. To date, over 500 competitive research grants have been supported.”
Prof. Bazeyo congratulated Dr. Hisali and the entire research team for undertaking a study geared towards strengthening the implementation of NDPIII and supporting the development of Uganda. “Most importantly, I would like to thank Dr. Hisali and the team for having a collaborative study that involved the key stakeholders such as URA. These are the stakeholders that are going to make it easy to buy into and implement the outcomes of this research.”
Commenting on the findings, the other stakeholders at the research dissemination workshop pointed out the need to embark on trust building programmes with the taxpayer. They equally emphasised the need to consider reducing the load on the tax payer. The taxpayer in Uganda is subject to taxes such as;
Value Added Tax (VAT), Pay As You Earn (PAYE), Customs, Demurrage, Income Tax, Withholding Tax, Excise Duty, Over-The-Top (OTT)/Social Media Tax among others.
Article by Public Relations Office
The Vice Chancellor of Makerere University, Prof. Barnabas Nawangwe, has officially opened a one-week training for Ministry of Kampala Capital City and Metropolitan Affairs (MoKCC&MA) officials on Integrating and Managing Environmental, Social, Health and Safety (ESHS) Safeguards in Procurement.
The training, conducted by the Public Investment Management (PIM) Centre of Excellence, is funded by the World Bank and brings together officials from KCCA, metropolitan and municipal authorities under the Greater Kampala Metropolitan Area (GKMA) programme, alongside officials from central government ministries and agencies.
Opening the training, Prof. Nawangwe emphasized that safeguarding is a critical pillar of sustainable development and accountable public service delivery.
“If we get things wrong in Kampala, we affect the entire country. Everything done in this city must be well planned, socially responsible, and environmentally sound,” Prof. Nawangwe said.
Drawing from his professional background as an architect, the Vice Chancellor underscored the importance of environmental, social, and safety safeguards, noting that failure to address these issues at planning and procurement stages can lead to loss of life, stalled projects, and massive financial waste. He cited international examples where projects were halted or countries faced global pressure due to neglect of environmental and social considerations.
Prof. Nawangwe commended the World Bank for its continued partnership with Makerere University, particularly in supporting the establishment and growth of the PIM Centre of Excellence, which he described as one of the University’s flagship initiatives with visible national impact.
“I see the work of the PIM Centre in government processes, in reports, and even in Development Committee meetings. That is real impact,” he noted, adding that strengthening in-country capacity through Makerere reduces reliance on costly external consultants.
He reaffirmed Makerere University’s commitment to supporting government through research, training, and policy-relevant knowledge, stressing that continuous professional development is essential in a rapidly changing world.
The Under Secretary, Ministry of Kampala Capital City and Metropolitan Affairs, Ms. Monica Edemachu Ejua, welcomed the training, describing it as timely and necessary given the challenges faced during project implementation, particularly in road construction.
Ms. Ejua, revealed that the training was informed by real and painful experiences, including fatal accidents on construction sites, some of which could have been avoided with stronger environmental and social safeguards.
“Environmental, social, and health and safety issues must never be downplayed. These considerations must begin at procurement planning, not at implementation,” she said.
She highlighted that procurement officers, engineers, planners, accountants, and administrators must all understand safeguards, noting that infrastructure development is inherently multidisciplinary.
“Development must be a blessing to communities—not a burden,” she added.
Ms. Ejua praised Makerere University for hosting the training and the World Bank for supporting government efforts to build institutional capacity, adding that learning does not end at graduation.
World Bank: Strong Country Systems Are Key to Development Impact
Presenting on behalf of the World Bank, Ms. Christine Kasedde, a Senior Environmental Specialist, explained that the training is part of a broader effort to strengthen country systems for managing environmental and social risks in development projects.
She noted that while the World Bank has committed over USD 4 billion to projects in Uganda, weak safeguards and capacity constraints have affected implementation and disbursement.
“Environmental and social safeguards are legally binding commitments. When they are not addressed properly, issues escalate to the highest levels of government,” Ms. Kasedde explained.
She outlined how the collaboration with Makerere University has led to the development of several short professional courses across CoBAMS, the College of Agricultural and Environmental Sciences (CAES), and the College of Humanities and Social Sciences (CHUSS). These courses address gaps in social risk management, environmental sustainability, health and safety, climate risk, and procurement.
Ms. Kasedde also revealed that the partnership has culminated in the establishment of an Environmental and Social Sustainability Centre at Makerere University, which will serve as a hub for training, research, advisory services, and independent assessments.
Procurement as a Tool for Sustainable Development
Representing the Public Procurement and Disposal of Public Assets Authority (PPDA), Ms. Mercy Kyoshabire, Director for Procurement and Disposal Capacity Building, emphasized that public procurement accounts for over 60 percent of government expenditure and must therefore be leveraged as a tool for sustainable development.
She reminded participants that environmental, health, and social safeguards have been embedded in standard bidding documents since 2019, urging procurement professionals to integrate sustainability throughout the procurement cycle.
“Sustainability is about the three Ps—People, Profit, and Planet. Procurement decisions made today should not compromise future generations,” she said.
Ms. Kyoshabire reaffirmed PPDA’s commitment to collaboration and capacity building, particularly with centres of excellence such as Makerere University.
A Model of Interdisciplinary Collaboration
The training also drew strong support from the Principal of CAES, represented by Dr. Patrick Byakagaba and, Principal CHUSS, Prof. Helen Nkabala, who emphasized Makerere University’s shift away from siloed approaches toward interdisciplinary collaboration in addressing national development challenges.
Prof. Edward Bbaale, Principal Investigator of the PIM Centre of Excellence, noted that the training responds to critical gaps identified at the pre-investment and procurement stages of public projects, particularly as Uganda pursues an ambitious growth agenda amid climate and social risks. Dr. John Sseruyange, the manager of PIM Centre of Excellence said, the week-long training is expected to strengthen the capacity of KCCA and GKMA implementing entities to integrate and manage environmental, social, health, and safety safeguards across the procurement and project implementation cycle, ultimately improving service delivery and protecting communities.
Business & Management
Building Skills for Better Public Investments: PIM Centre Trains Public Sector Economists
Away from the bustle of the city, in the calm setting of Mbarara, over 30 public service economists have gathered with a shared purpose: to strengthen the skills that shape how public resources are invested and how national development priorities are realised.
The two-week executive training on Economic Appraisal and Stakeholder Analysis, organised by the Public Investment Management (PIM) Centre of Excellence at Makerere University, officially commenced this week, bringing together public officers from across government, academia, state agencies, and civil society. At its core, the programme seeks to answer a fundamental question—how can Uganda ensure that every shilling invested in public projects delivers maximum economic and social value?
The training draws expertise from Makerere University, Cambridge Resources International (CRI), the Ministry of Finance, Planning and Economic Development (MoFPED), and the National Planning Authority (NPA), reflecting a strong partnership between academia, policy makers, and development practitioners. Participants represent a wide cross-section of institutions, including the Ministry of Internal Affairs, Uganda Tourism Board, MoFPED, Kiira Municipality, Wakiso Local Government, Kyambogo University, Makerere University, UEDCL, UNCST, UDC, the Uganda Police Force, Parliament of Uganda, and several civil society organisations.
Opening the programme on behalf of the Permanent Secretary and Secretary to the Treasury, Commissioner PAP, Ms. Gertrude Basiima, explained that the choice of venue was intentional. Holding the training away from the city, she noted, allows participants to concentrate fully and engage more deeply with the intensive content. Previous trainings held in similar settings, she added, had yielded positive results.
Ms. Basiima highlighted that the training is part of a long-standing strategic partnership between the Ministry of Finance and the PIM Centre of Excellence at Makerere University, housed in the School of Economics. Established in 2016, the collaboration was informed by diagnostic assessments that revealed persistent gaps in Uganda’s public investment management system—particularly in project identification, appraisal, selection, and implementation.
“These gaps are not merely technical,” she observed. “They determine whether public investments truly transform communities or fall short of their promise.”
The training builds on earlier modules in financial appraisal, equipping participants with advanced competencies in economic appraisal and stakeholder analysis. Through practical case studies and hands-on exercises, participants will explore demand forecasting, economic pricing, and sector-specific appraisal techniques applicable to energy, water, transport, and agriculture. By the end of the programme, participants are expected to competently conduct cost-benefit analyses and assess whether proposed projects merit inclusion in the national budget.
Ms. Basiima emphasised that while many feasibility studies are prepared by consultants, public officers must be able to interrogate, quality-assure, and defend these studies before decision-making bodies such as the Development Committee. The training, she said, is designed to position participants to do exactly that.
For Prof. Edward Bbaale, Director of the PIM Centre of Excellence, the training comes at a critical moment in Uganda’s development journey. With the country implementing ambitious programmes under the National Development Plan IV and the Ten-Fold Growth Strategy, public investment has become a central driver of socio-economic transformation.
Across the country, Uganda is investing heavily in transport infrastructure, energy generation and transmission, irrigation systems to respond to climate change, industrial parks, digital infrastructure, education, and health facilities. Yet, as Prof. Bbaale cautioned, the success of these investments depends less on the volume of funding mobilised and more on the quality of project preparation and appraisal.
“Economic appraisal must be seen not as a box-ticking exercise, but as a strategic tool for national transformation,” he said. “It enables government to prioritise projects with the highest economic and social returns, minimise fiscal risks, and ensure value for money.”
Prof. Bbaale also underscored the strength of the multi-institutional partnership supporting the programme, noting that it blends global best practices with Uganda’s policy realities. At the conclusion of the training, participants will receive a tripartite certificate jointly issued by Makerere University, the Ministry of Finance, and Queen’s University, recognising their enhanced expertise in public investment management.
For the Manager of the PIM Centre of Excellence, Dr. John Sseruyange, the training is as much about mindset as it is about technical skills. He encouraged participants to remain disciplined, engage fully, and build professional networks that will endure long after the two weeks in Mbarara.
“The skills you gain here will not only strengthen you as individuals,” he noted, “but will directly influence the quality of public investment decisions made across Uganda.”
As the sessions unfold over the next two weeks, the training stands as a testament to Makerere University’s enduring contribution to national development—building capacity, shaping policy, and preparing public servants to make decisions that drive sustainable growth, economic resilience, and shared prosperity for all Ugandans.
Beyond training, the PIM Centre of Excellence continues to play a broader national role through research and policy advisory services. The Centre has supported the review of Development Committee guidelines and convened national dialogue through its annual Public Investment Management Conference, including last year’s conference themed “Overcoming Implementation Barriers in Public Investment Management for Fiscal Sustainability.”
-
General2 weeks agoCall for Applications: Admission to Postgraduate Programmes 2026/2027
-
Natural Sciences2 weeks agoSimon Mungudit: Mak’s Best Performing Male Science Student & Rising Star in Petroleum Geoscience
-
Agriculture & Environment1 week agoFrom Adversity to Excellence: The Inspiring Journey of Makerere’s Best Science Student, Esther Ziribaggwa
-
Health2 weeks agoCall For Applications: MakNCD Masters and PhD Training Opportunities
-
General5 days agoAptitude Exam (Paper 1) Results for the Mature Age Entry Scheme 2026/2027