Business & Management
Mak-RIF Plugs Tax Education Gaps in Uganda’s Informal Sector
Published
4 years agoon

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

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Business & Management
CoBAMS Orientation: Principal urges first year students to prioritize academics
Published
2 days agoon
August 7, 2025
Welcoming the first year students to Makerere University, and to the College of Business and Management Sciences in particular, the Principal-Prof. Edward Bbaale said: “Prioritize your academics. I urge you to remain focused. This is your season of hard work. You are here to contribute to the transformation of Uganda and the world at large.”
The Principal made the remarks on Day One (5th August 2025) of the College of Business and Management Sciences (CoBAMS) Orientation. Organised by the College Management and 91st College Guild Council, the Orientation is scheduled to take place from 5th to 8th August 2025 at Makerere University Yusuf Lule Central Teaching Facility (CTF2 Auditorium).
The Principal congratulated the first year students upon joining CoBAMS-the leading training unit and supply chain of professionals in economics, business, statistics and planning fields.
“We are proud to be shaping the future economists, business leaders, entrepreneurs, policy analysts, actuaries, and statisticians who will go on to transform industries, drive public policy, and make impactful decisions globally,” he remarked.
Prof. Bbaale pointed out that the College consists of three (3) schools namely Economics, Business, as well as Statistics and Planning. Providing a brief on the leadership of the College, he mentioned the Deputy Principal-Associate Professor James Wokadala, the Dean, School of Economics-Associate Professor Ibrahim Mike Okumu, the Dean, School of Business-Associate Professor Godfrey Akileng, and the Dean, School of Statistics and Planning-Dr. Margaret Banga. With reference to the orientation programme, he informed the students that they would have specialized sessions with the Deans and staff of the respective schools on 6th August 2025. The Principal also acknowledged Heads of Departments, and the College Management Board as key players in leadership.

Inspired by the rich and celebrated history of Makerere (established in 1922), Prof. Bbaale notified the students that the institution celebrated 100 years of excellent service to humanity in 2022, and has built a reputation that transcends borders. “The name, Makerere University is recognized, respected, and revered. I call upon you, to wholeheartedly guard and protect the institution’s name and reputation,” he said.
Tackling safety and well-being, Prof. Bbaale guided that safeguarding starts with an individual. He encouraged the students to read the Makerere University Safeguarding Policy to understand the safeguarding concerns, guidelines and responsibilities of the respective Offices. He informed the students that the College had safeguarding champions including a student representative, who have been trained to handle the safeguarding concerns, and to work closely with the students’ body to identify and report safeguarding matters.
He also cautioned the students against any forms of misconduct. “The University is committed to ensuring zero tolerance against sexual harassment, and exam malpractices. During the orientation, staff from the Gender Mainstreaming Directorate will provide a brief on the Policy and Regulations against Sexual Harassment, and the College Registrars will guide you on the academic policies.”
The address by the Principal set the pace for presentations on the following critical matters: Life at Campus, Guidance and Counselling, Makerere University Tuition Policy, Information Technology and Library resources, the Emerging Leaders Program (ELP), and a networking session with the 91st College student leaders.
Building on to the Principal’s powerful message, the following University officials interacted and engaged students on 5th August 2025: Ms Juliet Mirembe Ssewankambo-Acting College Registrar, Ms. Rose Nalwanga-Senior Counsellor, Dr. Peace Musiimenta-Representative of the Emerging Leaders program team, Mr. Peter Mubiru-College Bursar, Ms. Claire Nakaseeta-from the College Library, Mr. Gilbert Nsazimaana-DICTS, Ms. Namazzi Madrine Kayima-School of Economics Registrar, Ms. Stella Butamanya-School of Statistics and Planning Registrar, Ms. Ritah Namisango-Principal Communication Officer, and Mr. Moses Kibirango-Web Administrator.

From 6th to 8th August 2025, the student centered orientation features sessions on the following: Academic policies, orientation meetings with leadership of the respective Schools, understanding the responsibility of a student, health and wellness, brainteaser activities, gender mainstreaming, sensitization about the Red Cross, tour of the library and exposure to resources, as well as IT and hands-on-training.
Delighted that the first year students had turned up in big numbers, filling the auditorium to the brim, the Chairperson of the 91st College Guild Council, Fahad Ssozi Batte, said the 2025 orientation was planned to provide a rich and rewarding experience to students, as they commence the academic year 2025/2026. In addition, Ssozi Batte noted that the information and knowledge shared would provide a firm foundation to the students about life on campus. He thanked the entire College student leadership for remaining steadfast in the advancement of student interests.

Business & Management
COVID-19 Deepened Food Insecurity Among Uganda’s Urban Poor, With Women Hit Hardest, EfD Study Finds
Published
1 week agoon
July 31, 2025By
Jane Anyango
Kampala – July 31, 2025
A study by researchers from the EfD-Mak Centre at Makerere University has revealed stark gender differences in the impact of COVID-19 on food security among Uganda’s urban poor, with female-headed households bearing the brunt of the crisis. The findings were presented at a stakeholder dissemination meeting held at Tick Hotel in Kawempe Division, Kampala.
The research, led by Dr. Fred Matovu, Fred Kasalirwe, and Anitah Kyamugabwa, focused on Kawempe Division, one of Kampala’s most densely populated and low-income areas. Using data from a 2022 household survey of 415 respondents, along with focus group discussions and interviews with key government stakeholders, the study examined how the COVID-19 pandemic and related economic disruptions worsened food security in informal urban settings.

Speaking on behalf of the EfD Uganda Director, Dr. Peter Babyenda stressed that Uganda’s current social protection structures are inadequate, especially for the most vulnerable. He called for policy frameworks that are informed by grassroots realities. “We need policies that involve those affected from the ground up, especially the urban poor who live on daily incomes. During COVID-19, these groups suffered immensely when lockdowns were imposed without consultations,” he said.
The study, titled “Differences in COVID-19 Effects on Food Security and Adaptive Strategies among the Urban Poor: Experiences from Uganda and Tanzania”, was conducted between 2022 and 2023 in collaboration with EfD Tanzania. In Uganda, the research focused on how urban poverty intersected with gender and food insecurity.

Presenting the findings, Fred Kasalirwe reported that poor urban households, especially those relying on informal employment, were disproportionately affected due to low and unstable incomes. The containment measures introduced in March 2020 including stay-at-home orders, closure of schools, suspension of public transport, and night curfews had a devastating effect on daily earners. As economic activity halted, access to food, healthcare, and essential services declined sharply.
The research found that food security and dietary quality worsened for both male- and female-headed households. However, the impact was more severe for female-headed households due to greater caregiving responsibilities and fewer income-generating opportunities. With limited access to social safety nets, families resorted to extreme coping strategies such as selling household assets, depleting savings, and changing their diets involuntarily. Kasalirwe noted that government food assistance during the crisis was inconsistent and insufficient.

He explained that female-headed households faced unique challenges, often balancing caregiving with limited means to earn income during lockdowns. “These households suffered more from income shocks, leading to worsened nutrition among children and the elderly,” he said. Most had to rely on informal networks or personal savings to survive.
The study also noted an unexpected finding: persons with disabilities experienced relatively improved food security during the crisis, likely due to targeted social support. However, this level of support was not extended to most households, exposing critical gaps in Uganda’s social protection systems.

While the COVID-19 pandemic was a primary focus, researchers emphasized that food insecurity among the urban poor in Uganda has been driven by a wider series of shocks. These include prolonged droughts, floods, mudslides, economic recessions and the suspension of major aid programs such as USAID. Each of these events has further strained already fragile food systems and household resilience.
Kasalirwe warned that unless Uganda adopts robust and inclusive social protection policies, the country will remain vulnerable to future crises. He urged the government to consider gender-responsive strategies that recognize the disproportionate burden carried by women and informal workers. “Government programs often collapse because communities are not involved in designing or owning them,” he said. “What we need is a bottom-up approach where self-help mechanisms and community buy-ins are developed alongside government interventions.”

He further noted that while COVID-19 provided the context for the study, the findings are applicable to a wide range of future shocks, including public health emergencies, climate change, and global economic downturns. “We’ve seen floods in Mbale, Ebola outbreaks, and the ripple effects of the Ukraine war. We need systems that don’t crumble when funding dries up,” he said.
The researchers urged both the government and development partners to shift focus from emergency responses to long-term resilience building. They emphasized that coping strategies such as selling productive assets or reducing food intake are impoverishing and unsustainable. The study called for a strong policy framework that prioritizes food security, supports vulnerable populations, and enhances urban livelihoods.

The study recommends a participatory approach that actively involves vulnerable communities in the design and implementation of social protection programs. It also calls for the establishment of community-based safety nets that are sustainable even in the absence of regular government funding. The researchers stressed the importance of gender-sensitive planning, especially in informal settlements where women face heightened challenges during economic shocks. Additionally, the government is urged to streamline its social protection initiatives through the Ministry of Gender, Labour and Social Development, ensuring effective outreach and awareness to reach those most at risk.
The research was funded by the EfD Global Hub and coordinated by the EfD-Mak Centre. Participants at the dissemination meeting echoed the urgency of addressing urban food insecurity and preparing more effectively for future crises.
More photos from the workshop


Jane Anyango is the Communication Officer EfD Uganda.
Business & Management
Prof. Edward Bbaale endorses newly founded Mak-CoBAMS SACCO
Published
2 weeks agoon
July 24, 2025
By Ritah Namisango and Monica Meeme
On Tuesday 22nd July 2025, Prof. Edward Bbaale, the Principal of the College of Business and Management Sciences (CoBAMS) endorsed the newly-established College SACCO by enrolling as a member.
The Mak-CoBAMS SACCO, which was inaugurated on 14th July 2025, provides a platform to improve the economic well-being and quality of life of members through accessible financial services, provision of affordable loans, promotion of a savings and investment culture, financial security, and potential dividends.
The interim Committee that was instituted to kick-start the SACCO has been working under the guidance of the Deputy Principal, Associate Prof. James Wokadala as Patron.
Tasked with finalizing the operations of the SACCO, the Interim Committee, chaired by Dr. Peter Babyenda consists of the following members: Dr. Allen Kabagenyi-Vice Chairperson, Dr. Christopher Alioni-General Secretary, Mr. Peter Mubiru-Treasurer, and Mrs. Juliet Mirembe Ssewankambo-Mobilizer. The Committee members representing the three schools include: Mr. Fred Kasarirwe-School of Economics, Dr. Marion Nanyanzi-School of Business, and Dr. Hellen Namawejje-School of Statistics and Planning. Mr. Joseph Ikarok represents support staff on the SACCO.

As the SACCO kicks off, the Committee agreed on the following contributions: Membership fee of 20,000/=, Annual subscription fee of 30,000/=, a minimum of ten shares at 100,000/= per member, and a minimum monthly contribution of 50,000/=.
The Committee believes that the rates set are manageable by members of staff. According to the Chairperson, Dr. Babyenda, the Committee is enrolling members. He stated that the minimum monthly saving of 50,000/= is a priority, and also called upon each member to pay up the minimum 10 shares before 31st July 2025.
Congratulating the College Principal, Prof. Bbaale upon becoming a member of the Mak-CoBAMS SACCO, the interim General Secretary-Dr. Alioni, reported that they need at least 30 members to start operations.
Following his enrollment as a Member, Prof. Bbaale, lauded the team for the establishment of the SACCO, a long-awaited intervention that will provide financial support to staff members. He thanked Associate Prof. James Wokadala for his resilience and dedication to making this initiative a reality.
Prof. Bbaale explained that the SACCO is well-aligned with the college’s research and academic programs, which focus on business, economics, statistics and planning.He highlighted the critical need for accessible finance, citing it as one of the leading constraints to development and business growth. The SACCO will fill a significant gap by providing staff members with financial support at reasonable interest rates.

Prof. Bbaale believes that the SACCO will transcend his tenure and become a lasting legacy for the college, providing benefits to staff members for years to come. He commended the interim committee for their hard work and commitment to establishing the SACCO. He expressed confidence in the team’s ability to manage the SACCO effectively, citing their strong work ethic and dedication.
Pledging his full support towards the SACCO, Prof. Bbaale rallied members of staff to join the initiative and participate in its activities and programmes. He stated that the SACCO will have a positive impact on the college community, addressing financial constraints and improving the well-being of staff.
The Deputy Principal, Associate Prof. Wokadala, acknowledged the College Principal for hosting the meeting and guiding the process leading to the establishment of the SACCO. He noted that the SACCO is a long-standing dream of the college’s formulators and a game-changer for the institution. To this end, the College Board unanimously welcomed the idea and set up an interim committee to oversee its implementation.
Associate Prof. Wokadala commended the colleagues who volunteered to steer the initiative, expressing confidence that the SACCO would become vibrant and successful. He visualised the SACCO evolving into a microfinance institution or bank with member support.
The Deputy Principal reported that the Principal’s office provided a contribution of 3,000,000/= to kick-start the SACCO’s activities, which would be accounted for by the committee. He emphasized transparency and accountability in managing the funds, noting that the committee would account for every shilling received, and present a report to the Annual General Meeting (AGM).
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