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Study Reveals Taxation Issues in Uganda’s Informal Economy

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A recent study by researchers at Makerere University’s College of Business and Management Sciences has identified the lack of a structured taxation framework for informal businesses as a significant cause of tax non-compliance among traders in Uganda. This revelation came from a collaborative research project involving eight university scholars, who examined the underlying factors contributing to the shadow economy and its implications for the national tax system.

The findings were presented by Dr. Ismail Kintu, the study’s Principal Investigator, at a dissemination workshop held in Nansana Municipality Council, Wakiso District, on Thursday. The research, initiated in 2022, aimed to assess traders’ perceptions of fairness within the taxation system and how this relates to voluntary tax compliance.

“Traders said the system is unfair to them,” Dr. Kintu explained during the workshop. “Our research aimed to understand what fairness means in Uganda’s context.” According to the study, fairness in the tax system is crucial for voluntary compliance, suggesting that taxes should be aligned with one’s revenue, and penalties should be applied equitably.

Dr. Kintu the PI of the research project. Lack of a structured taxation framework for informal businesses - a significant cause of tax non-compliance among traders in Uganda. Underlying factors contributing to the shadow economy and its implications for the national tax system, a collaborative research project involving eight university scholars. Dissemination workshop by Principal Investigator Dr. Ismail Kintu and others, 25th April 2024, Nansana Municipality Council, Wakiso District, Uganda. East Africa.
Dr. Kintu the PI of the research project.

The researchers developed a proposed framework for taxing the informal economy, emphasizing the importance of consulting key stakeholders, such as district commercial officers, tax consultants, and leaders from traders’ associations, before implementing tax policies. The framework recommends engaging these stakeholders in meetings with the Uganda Revenue Authority (URA) and the Ministry of Finance to ensure that new tax policies are inclusive and fair.

The study also suggests the need for flexibility in tax collection, advocating for payment in installments and prior notification to traders before collecting taxes. This approach, the researchers argue, would help build trust and encourage compliance among informal traders.

The researchers’ proposed framework includes annual mapping of policy gaps in the informal economy and developing solutions to address them. This process would involve regular consultations with stakeholders to refine the tax system and maintain fairness.

Mr Festo Tandeka, the Town Clerk of Nansana Municipality. Lack of a structured taxation framework for informal businesses - a significant cause of tax non-compliance among traders in Uganda. Underlying factors contributing to the shadow economy and its implications for the national tax system, a collaborative research project involving eight university scholars. Dissemination workshop by Principal Investigator Dr. Ismail Kintu and others, 25th April 2024, Nansana Municipality Council, Wakiso District, Uganda. East Africa.
Mr Festo Tandeka, the Town Clerk of Nansana Municipality.

Local officials who attended the workshop expressed support for the research findings. Mr. Festo Tandeka, Nansana Municipality town clerk, encouraged traders to cultivate a culture of paying taxes but cautioned against excessive taxation. He recommended allowing tax payments in installments to avoid overburdening traders.

Similarly, Mr. Shaffic Ali Nsubuga, Nansana Municipality Deputy Resident District Commissioner, urged tax officers to approach tax collection with compassion, suggesting that prior notices be given to traders before taxes are collected.

The findings of the Makerere University study arrive at a critical time, as Ugandan traders have recently protested against increasing taxes. Mr. Joshua Mawerere, a youth representative from the Kampala City Traders Association, welcomed the study, noting that it brings clarity to issues surrounding tax policies. He urged the government to raise awareness about new tax systems, like the Electronic Fiscal Receipting and Invoicing Solution (EFRIS), which some traders mistakenly perceive as additional taxes.

The study’s comprehensive approach to understanding the informal economy’s taxation challenges may pave the way for a more inclusive and equitable tax system in Uganda, fostering greater compliance and reducing the size of the shadow economy.

The research was funded by the government of Uganda through the Makerere University Research and Innovations Fund (Mak-RIF). Speaking at the stakeholders’ engagement on April 25th, Ms Evelyn Nyacho who represented the chair of the grants committee, congratulated Dr. Kintu and team upon the timely research finding. She said the findings would help URA and the traders coming after a traders’ strike over taxation. She said Mak-RIF was happy to sponsor research that is aimed at solving society issues like taxation. “I was happy to learn that taxes can be pay in installments. I hope traders can embrace this flexibility in paying taxes,” she said. She appreciated government for the research funding to the university. The government commits Shs30 billion annually to research at Makerere University in an effort to spur development of the country.

The research team

Dr Kintu (PI), Prof Eria Hisali (Co. PI), Dr Fred Bateganya, Dr Willy Kagarura, Mr Patrick Lumala, Mr Nicholas Musoke, Ms Marion Atukunda, and Ms Winfred Nalwoga.

Betty Kyakuwa
Betty Kyakuwa

Business & Management

Press Release: Uganda Entrepreneurship Congress and Youth Expo

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Front View of the reconstructed Main Building, Makerere University. Date Taken 8th November 2024. Kampala Uganda, East Africa.

Release date: October 15, 2025

                                              PRESS RELEASE

RE: Uganda Entrepreneurship Congress and Youth Expo (October 16-17, 2025)

Over 60% of Uganda’s population is categorized as youth. According to the Vice Chancellor, Professor Barnabas Nawangwe, Makerere University is one of the institutions in Uganda with the highest concentration of youth. Annually, over 10,000 youth graduate from Makerere University to join the labour market. As they plan to transition into the job market, some of them, are hit by the hard reality of unemployment.  In Uganda, the youth unemployment rate (those aged 18 to 30) is 16.1% (Uganda Bureau of Statistics 2024).

To address this issue, Makerere University in partnership with the Government of Uganda, industry and the private sector, has been implementing programmes, to unlock the entrepreneurship potential of students and the youth in Uganda.

Through its College of Business and Management Sciences, the entity runs the Makerere University Entrepreneurship and Outreach Centre, committed to shaping Uganda’s next generation of entrepreneurs. The Center brings together members of the entrepreneurship ecosystem to discuss issues that are shaping entrepreneurial activities in the country.

This year, on the 16th and 17th of October, Makerere University Entrepreneurship and Outreach Centre, presents to you-The Uganda Entrepreneurship Congress and Youth Expo, themed, Brewing Prosperity: Youth Entrepreneurship in Uganda’s Coffee Value Chain.

The Entrepreneurship Congress and Youth Expo, spotlights one of Uganda’s most strategic Agricultural sectors-COFFEE. Over 600 students from the College of Business and Management Sciences at Makerere University, will showcase different innovations, with potential to be scaled into companies and business enterprises.

Focus on the Coffee Sector: By June 2024, Uganda had exported 667,037 kilograms of coffee worth US$162.36 million, underscoring its role as a cornerstone of the economy and a key foreign exchange earner. Despite this performance, the majority of Uganda’s youth remain excluded from the coffee value chain, often confined to low-income farm labor with limited participation in processing, branding, and export where the greatest value is captured (Uganda Coffee Development Authority).

With 78% of Uganda’s population under 30, this disconnect represents both a critical risk and an unprecedented opportunity.

Therefore, the Uganda Entrepreneurship Congress and Youth Expo at Makerere University, serves as a national convening platform for youth, entrepreneurs, investors, policymakers, and private sector leaders to unlock youth-driven innovation across the coffee value chain, from climate-smart farming and agritech to processing, branding, and global market access. By moving beyond subsistence farming towards ownership, innovation, and high value enterprises, the youth in Uganda can secure a greater share of the global coffee market while catalyzing job creation and sustainable development.

  • 16th October 2025-Uganda Entrepreneurship Congress (8:00am to 3:00pm) at Makerere University Yusuf Lule Central Teaching Facility Auditorium.
  • 17th October 2025-The Innovation and Youth Expo (8:00am to 4:30pm) at Makerere University Freedom Square, featuring youth coffee brands, brewing demonstrations, agritech prototypes, and live cupping sessions. 

Key milestone: Dr. Sarah Bimbona, a Lecturer at the College of Business and Management Sciences, and the Director of the Makerere University Entrepreneurship and Outreach Centre, states that during the Congress and Expo, over 600 youth will be equipped with new skills to join and innovate in the coffee industry.

Chief Guest: Mr. Odrek Rwabwogo, Chairperson, Presidential Advisory Committee on Exports and Industrial Development (PACEID).

Keynote Speaker: Mr. Moses Nyabila, Chief Executive Officer, aBi Development Ltd.

Panel 1:  Market Readiness, Value Addition and Story Telling; and Panel 2-Financing the Future.

Some of the Partners: Ministry of Agriculture, Animal Industry and Fisheries, National Coffee Research Initiative (NaCORI), BRAC Uganda, Tooke, Mastercard Foundation Scholars Program, Vision Group, Mountain Harvest, Pepsi, Rainforest Alliance, Sumz, and the Banana Industrial Research & Development Centre. 

CONTACT PERSON:  For additional information, please contact: Ms. Ritah Namisango, Public Relations and Communication Specialist at Makerere University, College of Business and Management Sciences, Telephone contact: +256 702944224.

Ritah Namisango
Ritah Namisango

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Over 35 Officials Begin Training in Financial Appraisal and Risk Analysis

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Participants including over 35 public officials from various pose for a group photo at the commencement of the training on 13th October 2025 in Mbarara. 35 public officials from various MDAs commenced two-week intensive training in Financial Appraisal and Risk Analysis in Mbarara, 13th October 2025 organized by the Public Investment Management (PIM) Centre of Excellence at Makerere University, Kampala Uganda, East Africa in collaboration with the Ministry of Finance, Planning and Economic Development (MoFPED), the National Planning Authority (NPA), and Cambridge Resources International (CRI).

Over 35 public officials from various Ministries, Departments and Agencies (MDAs) have commenced a two-week intensive training in Financial Appraisal and Risk Analysis in Mbarara. The training is organized by the Public Investment Management (PIM) Centre of Excellence at Makerere University, in collaboration with the Ministry of Finance, Planning and Economic Development (MoFPED), the National Planning Authority (NPA), and Cambridge Resources International (CRI).

Speaking on behalf of the Permanent Secretary and Secretary to the Treasury, Ms. Esther Ayebare commended the ongoing efforts to strengthen Uganda’s public investment management systems. She highlighted the recent launch of the National Public Investment Management Policy, describing it as a robust and unified framework guiding the entire investment cycle—from planning and appraisal through to implementation and post-evaluation.

Ms. Esther Ayebare. 35 public officials from various MDAs commenced two-week intensive training in Financial Appraisal and Risk Analysis in Mbarara, 13th October 2025 organized by the Public Investment Management (PIM) Centre of Excellence at Makerere University, Kampala Uganda, East Africa in collaboration with the Ministry of Finance, Planning and Economic Development (MoFPED), the National Planning Authority (NPA), and Cambridge Resources International (CRI).
Ms. Esther Ayebare.

Ms. Ayebare further noted other key reforms including the Framework for Tracking Implementation and Performance of Public Investments, the revised Development Committee Guidelines, and the Integrated Bank of Projects, all of which are designed to improve efficiency, accountability, and value-for-money in public investments.

“Each of these reforms plays a key role in enhancing public investment management. I urge you to familiarize yourselves with them and integrate these frameworks into your daily work,” she added.

Prof. Eria Hisali. 35 public officials from various MDAs commenced two-week intensive training in Financial Appraisal and Risk Analysis in Mbarara, 13th October 2025 organized by the Public Investment Management (PIM) Centre of Excellence at Makerere University, Kampala Uganda, East Africa in collaboration with the Ministry of Finance, Planning and Economic Development (MoFPED), the National Planning Authority (NPA), and Cambridge Resources International (CRI).
Prof. Eria Hisali.

The Deputy Director of the PIM Centre of Excellence, Prof. Eria Hisali, encouraged participants to actively engage throughout the training and make the most of the opportunity to build their analytical and decision-making capacity. He commended the Ministry of Finance for its continued financial support to the Centre and reaffirmed Makerere University’s commitment to providing high-quality training and research to strengthen public investment governance.

The Manager of the PIM Centre, Dr. John Sseruyange, underscored the importance of the training, emphasizing that the PIM Centre was established to build national capacity in the appraisal, management, and evaluation of public investments. He called on participants to apply the knowledge gained to improve project preparation and implementation within their respective institutions.

Dr. John Sseruyange. 35 public officials from various MDAs commenced two-week intensive training in Financial Appraisal and Risk Analysis in Mbarara, 13th October 2025 organized by the Public Investment Management (PIM) Centre of Excellence at Makerere University, Kampala Uganda, East Africa in collaboration with the Ministry of Finance, Planning and Economic Development (MoFPED), the National Planning Authority (NPA), and Cambridge Resources International (CRI).
Dr. John Sseruyange.

Dr. Sseruyange also expressed appreciation to the team of facilitators drawn from Makerere University, MoFPED, NPA, and CRI for their expertise and continued dedication to building Uganda’s human capital for effective public investment management.

The Financial Appraisal and Risk Analysis course is part of a broader capacity-building programme implemented by the PIM Centre aimed at enhancing the skills of public officials in the design, evaluation, and monitoring of development projects to ensure that public investments deliver optimal socio-economic returns for the country.

Betty Kyakuwa
Betty Kyakuwa

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PIM Centre Holds 9th Steering Committee Meeting, Set to Benefit from World Bank Support

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Mak PIM COE Steering Committee

The Public Investment Management (PIM) Centre of Excellence at Makerere University today, October 10th, 2025, held its 9th Steering Committee Meeting to review progress made in the first quarter of the financial year and plan for the months ahead.

The meeting was chaired by Ms. Getrude Basiima, who represented Mr. Hannington Ashaba, Director Budget at the Ministry of Finance, Planning and Economic Development (MoFPED). Ms. Basiima commended the Centre for its continued commitment to strengthening public investment management capacity across government institutions.

In her remarks, Ms. Basiima applauded the Centre for successfully hosting the Public Investment Management Conference held in August at Makerere University. The conference attracted key policymakers, development partners, and academics who deliberated on how to enhance the efficiency, sustainability, and impact of public investments in Uganda.

She further shared exciting news that the Government of Uganda has secured funding from the World Bank to support the public investment management function. The PIM Centre, she announced, will be among the key beneficiaries of these funds — receiving support for the construction and acquisition of a permanent home to enhance its institutional sustainability and training capacity.

Reviewing the Centre’s quarterly performance, Ms. Basiima congratulated the team for successfully conducting three specialized trainings in the first quarter, reaching officials from various Ministries, Departments, and Agencies. These trainings continue to strengthen the technical competencies required for effective project preparation, appraisal, and implementation in line with Uganda’s National Development Plan.

The PIM Steering Committee in a meeting held at Emin Pasha Hotel

She encouraged the Centre to integrate climate change considerations into its future training programmes, noting that sustainable public investment must now account for environmental resilience and climate adaptation.

The centre team presented the proposed  structure/ organogram, the financial performance of 2024/2025, research areas for 2025/2026 and the strategic plan for 2025 – 2030.

The Steering Committee reaffirmed its commitment to supporting the PIM Centre’s vision of becoming a regional leader in building capacity for efficient, transparent, and sustainable public investment management.

Betty Kyakuwa
Betty Kyakuwa

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