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
Kampala, Uganda – December 19, 2025 — The Environment for Development (EfD) Uganda Centre at Makerere University has taken stock of its 2025 achievements and outlined its strategic direction for 2025–2029, with a strong focus on energy transition, climate change, and sustainable natural resource management.
The reflections were shared during the Centre’s annual end-of-year celebration, which brought together members of the EfD Steering Committee, deans from the School of Economics and the School of Agricultural Sciences, government officials, private sector actors, civil society organisations, researchers, and students.
Interdisciplinary Foundation Strengthens Impact
Addressing stakeholders, EfD Uganda Director, Professor Edward Bbaale, highlighted the Centre’s progress in institutional development, research, policy engagement, and capacity building. While acknowledging challenges encountered during the year, he noted that these provided valuable lessons as the Centre transitions into a new strategic phase under the EfD Strategic Plan (2025–2029).
Prof. Bbaale underscored the Centre’s unique positioning within Makerere University, noting that it is jointly anchored in the School of Economics and the School of Agricultural Sciences. This interdisciplinary foundation, he said, enables EfD Uganda to address complex development challenges such as energy transition, climate change, water resources, forestry, biodiversity, and agriculture from a holistic perspective.
“This approach aligns with Makerere University’s policy on research institutes and reflects global trends that increasingly demand cross-disciplinary collaboration,” he said.
He further highlighted existing academic synergies, with PhD students in Economics and Agricultural Economics sharing coursework, and announced the launch of a Master of Science in Environment and Natural Resource Economics, recently approved by the National Council for Higher Education. The programme, jointly developed by faculty from both schools, is expected to strengthen training in environmental economics and natural resource management.
Strategic Direction for 2025–2029
Prof. Bbaale unveiled the Centre’s strategic plan for 2025–2029, anchored on six thematic areas: energy transition; climate change adaptation and mitigation; climate-smart agriculture; water resources management; forestry and biodiversity; and environmental quality.
He noted that climate change remains a cross-cutting issue across all themes, adding that EfD Uganda will continue to work closely with stakeholders to ensure its research informs national policy and practical interventions.
Over the next five years, the Centre’s research will focus on land use and biodiversity conservation, climate-smart agriculture, climate change adaptation and mitigation, and energy transition-areas expected to generate evidence-based solutions for Uganda and the wider region.
Key stakeholders identified for collaboration include the National Planning Authority, the Ministry of Finance, Planning and Economic Development (Climate Finance Unit), the Ministry of Agriculture, Animal Industry and Fisheries, the Ministry of Water and Environment, the Ministry of Energy and Mineral Development, and district local governments.
Major Achievements in 2025
Prof. Bbaale reported that the Centre concentrated its efforts on the three pillars of Makerere University: research, policy engagement, and training.
Policy Engagement
The Centre organised two high-level dialogues on climate-smart agriculture and a policy dialogue on e-mobility under the Inclusive Green Economy (IGE) programme.
“We chose e-mobility because it is a green mode of transport,” Prof. Bbaale said. “Through the IGE programme, we worked with senior civil servants and policymakers to explore how Uganda can transition to a greener economy.”
The programme also facilitated cross-country peer learning among Ethiopia, Tanzania, Kenya, Rwanda, and Uganda. He cited Rwanda’s rapid electrification of motorcycles through taxation and subsidies, and Tanzania’s success in universal rural electrification, as key lessons.
Capacity Building
The Centre conducted more than ten training sessions for fellows, researchers, policymakers, and graduate students. It also recruited a funded postdoctoral fellow Dr. Gemeda Olani Akuma. from Ethiopia, to work on natural capital issues.
“Postdoctoral fellows are critical to knowledge generation,” Prof. Bbaale noted. “If Makerere strengthens its postdoctoral programme, our research output will more than triple.”
He referenced benchmarking visits to South African universities with strong postdoctoral systems, noting that Makerere is steadily moving toward becoming a research-led institution.
New Projects and Institutional Growth
EfD Uganda launched five new projects and expanded its institutional partnerships during the year. These included Sida-funded initiatives, a consultancy with GIZ, the Centre’s first MakRIF-funded project, and grants from the Gates Foundation and the Carnegie Corporation.
In institutional development, the Centre inaugurated 13 new advisory board members, strengthening governance and oversight. Prof. Bbaale also introduced the Centre’s core staff, praising their dedication and commitment to capacity building, including the mentorship of interns and teaching assistants some of whom have since joined institutions such as the Bank of Uganda.
Strengthening National and International Engagement
The Centre deepened collaboration with national institutions, including the National Planning Authority, the Ministry of Finance, Parliament, and the National Water and Sewerage Corporation. Among ongoing initiatives is a study aimed at improving bill payments at the utility to unlock new investments and service improvements.
EfD Uganda is also working with district local governments to build capacity in environmental valuation and natural capital accounting, supported by MakRIF funding from the Government of Uganda.. Trainings were conducted for districts in central Uganda and in Fort Portal.
At the international level, the Centre hosted visiting scholars, including Prof. Edwin Mchapondwa from the University of Cape Town, who trained government officials on community-based conservation, and Prof. Mark Purdon from the University of Montreal, who launched a book on carbon markets.
EfD’s Natural Capital Accounting Model Adopted by Government
A major highlight was the development of a natural capital accounting model, supported by GIZ and now adopted by the Ministry of Water and Environment. The Excel-based MoneyCap model, developed in collaboration with the Ministry of Finance, UBOS, and the National Planning Authority, supports policy assessment by comparing investment scenarios in natural capital.
“This places us at another level,” Prof. Bbaale said, noting that the model aligns with global climate finance discourse and Africa’s emerging coalition of finance ministers for climate action.
Prof. Bbaale warned that Uganda’s agriculture sector must urgently adapt to climate realities, citing erratic rainfall and rising temperatures. He stressed that climate-smart agriculture is critical to safeguarding livelihoods and food security.
The Centre also celebrated the graduation of a new cohort of Inclusive Green Economy Fellows, supported by Sida, and announced five new grants, including a Carnegie-funded project on household and SME energy efficiency and a grant for climate-sensitive macroeconomic modelling and the Makerere Research and Innovation Fund (MakRIF) from the Government of Uganda
Commitment to Policy-Relevant Research
In his concluding remarks, Prof. Bbaale reaffirmed EfD Uganda’s mission to generate research that delivers practical solutions for policymakers and communities.
“Our work asks a fundamental question: how much natural capital are we depleting in the pursuit of growth?” he said. “That is the frontier we are working on.”
He thanked the Centre’s team for their dedication and contributions throughout the year.
Centre Reaffirms Commitment to Collaboration
Dr. Peter Babyenda, Policy Engagement Specialist, reaffirmed EfD Uganda’s commitment to collaboration with policymakers, academia, civil society, and the media.
“Policy engagement includes working with the media,” Dr. Babyenda said. “We remain open to partnerships and invite stakeholders to engage with us.”
He thanked participants for attending the annual reflection event and encouraged continued networking.
Jane Anyango is the Communication Officer, EfD-Mak Centre
December 18, 2025 – Coming after the successful completion of the examination season, and as the year comes to an end, the afternoon, evening and night hours of 18th December 2025, presented the best opportunity, to staff to reflect on the 2025 College of Business and Management Sciences (CoBAMS) achievements in a relaxed environment.
The ever-green Makerere University Guest House gardens provided comfort as staff continued to enjoy this lovely space situated on the Makerere University Main Campus.
The event brought together the Principal, Deputy Principal, Deans of the respective Schools, Heads of Department, academic, administrative, technical and support staff, as well as guests, in a mix of celebration, networking, and recognition.
The end of year staff get-together provided a platform to strengthen collegial relationships, and reflect on the College’s future direction. In the true sense of networking, the event also featured dance competitions amongst staff.
Recognition of CoBAMS staff who received the Vice Chancellor’s Excellence Awards 2025
A key highlight of the event featured recognition of the ten (10) members of staff from CoBAMS who received the Vice Chancellor’s Excellence Award 2025. These included: Early Career Scholar Category-Namugenyi Christabellah and Dr. Richard Ssempala, Mid-Career Scholar Category-Dr. Peter Kisaakye, Dr. Anthony Tibaingana, Dr. John A. Mushomi, and Dr. Kasimu Ssendawula, Senior Career Scholar Category-Dr. Stephen O. Wandera, and the Best Teachers Category-Dr. Patricia Ndugga, Dr. Faisal Buyinza and Mr. Fred Kasalirwe.
Presenting the CoBAMS Awards amidst applause from members of staff, the Deputy Vice Chancellor (Academic Affairs)-Prof.Sarah Ssali flanked by the Deputy Principal of the College, Associate Professor James Wokadala read a special message: “Your dedication elevates the standards of the College of Business and Management Sciences and brings distinction to Makerere University.”
Collective Achievements and Strategic Priorities
Professor Edward Bbaale, Principal of CoBAMS, in his end-of-year message, acknowledged the dedication of all staff and their contributions to the college’s success. “I sincerely thank all colleagues across our academic, research, administrative, and support units for your relentless dedication to advancing the mandate of the College. Your collective efforts remain the backbone of our success and institutional resilience,” he said.
Prof. Bbaale highlighted notable achievements in research and publications, congratulating staff who received the Vice Chancellor’s Excellence Awards and Best Teacher Awards. “These achievements reflect individual distinction and collective pride for our College. I encourage you to sustain this excellent performance,” he said. He further recognised faculty who secured research grants from Mak-RIF, international development partners including the Gates Foundation, UN-PAGE, GGGI, the World Bank, and Erasmus+, noting that such successes reflect growing global trust in CoBAMS scholarship.
The Principal underscored the college’s role in fostering institutional growth and partnerships. “I appreciate colleagues who have initiated and advanced Memoranda of Understanding with domestic and international partners. These platforms strengthen relevant academic training, impactful research, and policy engagement,” he said.
He highlighted new academic programs responsive to Uganda’s economic and societal needs, emphasising the college’s forward-looking and development-oriented approach.
Prof. Bbaale praised initiatives promoting staff welfare and cohesion, including the CoBAMS Physical Fitness Programme and the Mak-CoBAMS SACCO.
On infrastructure development, the Principal noted, “Government has allocated resources to commence the CoBAMS Infrastructure Expansion Project, and the University Council has approved two strategically located plots of land for its implementation. We shall actively engage the design consultant to ensure the buildings meet our teaching, research, innovation, and policy-engagement needs.”
He concluded his remarks by acknowledging life’s challenges alongside successes, extending condolences to staff who lost loved ones in 2025 and seasonal greetings: “As we step into 2026, I wish you and your families a year filled with God’s abundant blessings, good health, professional fulfilment, and personal joy. Merry Christmas and a Happy New Year to all.”
DVC Academic Affairs praises Research, Innovation, and Integrity
The Deputy Vice Chancellor for Academic Affairs, Professor Sarah Ssali, praised CoBAMS for its contribution to Makerere University’s strategic goals.
She extended warm greetings from the university management, including the Vice Chancellor, and underscored the importance of every staff member’s role. “Whatever role you play, you are adding a brick to this institution, just as those before us did,” she said.
Prof. Ssali highlighted the college’s research-led initiatives, emphasizing the importance of postgraduate and doctoral programs as a pipeline for academic excellence. “I commend CoBAMS for taking this seriously. Your work reflects the university’s strategic direction and internationalisation,” she said.
She noted the recent launch of the CoBAMS Working Paper Series and encouraged its development into four journals in economics, business, statistics, and planning in the near future. “This will allow graduate students to actively contribute, mentoring the next generation of scholars while strengthening Africa’s knowledge production and decolonising knowledge,” she explained.
The DVC Academic Affairs acknowledged CoBAMS for innovative approaches to research and value addition. “During the Entrepreneurship Expo, your work with coffee demonstrated how one thematic area can generate multiple products—from coffee oil to bath scrubs—showing creativity and value addition. Similarly, demography and population studies contribute crucial expertise, from census data to electoral processes,” she said.
Prof. Ssali encouraged the college to document and develop indigenous knowledge systems. “Your role as a college is to study local economic models, explore African-informed business and economic practices, and produce scholarship that reflects local realities,” she said.
She congratulated faculty members who secured research grants, published in peer-reviewed journals, or served as editors, noting that these achievements reflect both individual excellence and the academic culture of CoBAMS.
Reflecting on the Professor Emmanuel Tumusiime-Mutebile Centre of Excellence at Makerere University and the research promoted by the Tumusiime Mutebile Foundation, Prof. Ssali called for rigorous development of the initiative. “While research chairs focus on individual scholarship, Centres of Excellence build pipelines of knowledge for future generations, preserving the legacy of scholars namely Dr Mutebile in monetary policy, finance, and banking,” she said.
Networking and Teamwork
In his address, Associate Professor James Wokadala, the Deputy Principal of CoBAMS, emphasized the importance of networking and teamwork. “Today is a day for networking. This is a time to connect socially, celebrate, and reaffirm our commitment to serve Makerere University and, specifically, our College.”
He applauded staff for supporting the college’s teaching, learning, research, and student mentorship activities. He highlighted CoBAMS’ innovative initiatives, including the CoBAMS SACCO and the CoBAMS fitness club, which promote teamwork, wellness, and collegiality.
He thanked the event organisers for their efforts and acknowledged those who have supported administrative processes, such as fast-tracking promotion applications. He called upon staff to continue collaborating to serve Makerere University, the nation, and humanity.
Staff Appreciate the get-together moments
Charmed by the spirit of celebration, dance competitions amongst staff, and the choice of trending music, a significant number of staff stayed at the venue until the party came to a complete stop at 10:00p.m.
The following day (19th December 2025), the rejuvenated staff took to the College WhatsApp platform, and wrote messages, acknowledging being refreshed, feeling nice and young again. They requested the College leadership to plan for more of such engagements that promote teamwork, collegiality and good health.
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