Business & Management

Study Reveals Taxation Issues in Uganda’s Informal Economy

Published

2 years ago

April 30, 2024

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. Group photo of the workshop participants. — Group photo of the workshop participants.

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 25^th, 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.

Related Topics:CoBAMS compliance economy EFRIS fair flexibility Funding inclusive Mak-RIF payment policies RDC shadow economy taxation trade Uganda URA Wakiso

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Business & Management

Cementing the Mak-UNISA partnership: Prof. Sarah Ssali meets Dr. Sizile Makola

Published

3 days ago

April 15, 2026

Ritah Namisango

L-R: Associate Prof. Godfrey Akileng, Dean,School of Business, Visiting Scholar-Dr. Sizile Makola, DVCAA-Prof. Sarah Ssali, Ms. Agnes Sansa-PhD Student during the meeting on 13th April 2026.

On 13^th April 2026, Prof. Sarah Ssali, the Deputy Vice Chancellor (Academic Affairs) of Makerere University, hosted Dr. Sizile Makola, a Visiting Scholar and Senior Lecturer from the University of South Africa (UNISA).

Makerere University and the University of South Africa committed to partnership and collaboration through a signed Memorandum of Understanding (MoU). Consequently, Dr. Makola, a researcher and an expert in human resource and business management is scheduled to spend two weeks at Makerere University, interacting with the leadership at different levels, researchers, students, as well as staff in the Department of Marketing and Management, School of Business under the College of Business and Management Sciences (CoBAMS).

Additionally, the visit accords Dr. Makola the golden opportunity to finalise her comparative studies with members of staff from the Department of Marketing and Management on behalf of Makerere University for the Ugandan context.

The meeting between the Deputy Vice Chancellor (Academic Affairs) and Dr. Sizile Makola was attended by Associate Professor Godfrey Akileng-the Dean, School of Business, and Ms. Agnes Sansa from the Department of Marketing and Management.

Welcoming the Visiting Scholar, the Deputy Vice Chancellor (Academic Affairs) urged Dr. Makola to solidify the Memorandum of Understanding (MoU) between both universities through academic exchanges and deepening scholarship on African-centred leadership.

Prof. Ssali shared a brief trajectory that has shaped Uganda’s workspace. She mentioned the critical role of three pillars that have fundamentally influenced the human resource development landscape in Uganda namely: Cultural practices, Structural Adjustment Programs (SAP), and Spirituality/Religion. She also acknowledged the distinct historical differences between Uganda and South Africa.

Dr. Makola’s discussion with the Deputy Vice Chancellor (Academic Affairs) also featured the ongoing comparative study that Dr. Sizile Makola and Ms. Agnes Sansa are conducting in relation to how organizational and human resource management conditions shape the recognition and conversion of women leadership resilience in Uganda and South Africa.

The study is titled: Ubuntu/Obuntu Bulamu, Emotional Capital and Women’s Leadership Resilience: A Comparative Study Across Public and Private Sectors in South Africa and Uganda.

Impressed by the ongoing study, Prof. Ssali implored the visiting faculty-Dr. Sizile Makola to share with her the findings in due course.

Prof. Ssali expressed the readiness of the Office of the Deputy Vice Chancellor (Academic Affairs) to work with the different units within Makerere University, and the University of South Africa, to support programmes aimed at strengthening collaboration, partnership, research, and internationalization.

On 10^th April 2026, Dr. Makola delivered a captivating guest lecture titled,Re-Imagining Human Resource Management in Africa, targeting undergraduate and postgraduate students pursuing human resource management courses at Makerere University.

Emphasizing the need to integrate indigenous knowledge and organizational practice, Dr. Makola argued that researchers should theorize from African contexts, treat indigenous knowledge as a source of theory, use methodologies capturing moral, communal, and context-bound dimensions of work, and build concepts from African languages, values, and institutional histories.

She stressed the need for African-centered human resource management thinking, rather than just adding local case studies to Western frameworks. Dr. Makola’s argument was informed by limitations of Western human resource management frameworks, which assume autonomous individuals, formal institutions, and technical organizations, which are separate from family and community.

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Business & Management

Call For Applications: Student Mobility – University of Padova, Italy (Oct 2026-Jan 2027)

Published

4 days ago

April 14, 2026

Mak Editor

Group Photo of the trainers and trainees that took part in the workshop on multivariate statistics and time series analysis, held 11th-20th June 2024 between the School of Statistics and Planning, CoBAMS and University of Padova, Italy. Makerere University School of Statistics and Planning-University of Padova, Italy dynamic workshop on multivariate statistics and time series analysis, 11th to 20th June 2024, Makerere University, Kampala Uganda, East Africa.

Arising from an existing Memorandum of Understanding (until September 2028) between University of Padova, Italy (UniPd) and Makerere University (Mak), the two institutions partnered and will jointly implement the Bilateral Agreement for the mobility for students between 2026 and 2027. At Mak, the Departmental Flow Coordinator is Symon Peter Wandiembe (PhD) and the project Principal Investigator and Contact Person is Saint Kizito Omala (PhD), both of Department of Statistical Methods and Actuarial Science (DSMAS).

In this regard, the Department of Statistical Methods and Actuarial Science wishes to announce opportunities for student mobility to the Department of Statistical Sciences, University of Padova, Italy for the Winter Semester, October 2026 – January 2027.

The selection process shall entail five-steps:

Step 1: Submission of documents by candidates for nomination, with an internal deadline of April 20^th, 2026, 05.00 p.m. (EAT) to allow for time to process nomination applications;
Step 2: Meeting of the Nomination Committee to review documents received from applicants;
Step 3: Submitting the list of nominated candidates, by April 30^th, 2026, to the International Projects and Mobility Office of the University of Padua, Italy;
Step 4: Eligibility check and communication to successful candidates by the International Projects and Mobility Office of the University of Padua, Italy; and
Step 5: Application for the Mobility opportunity by successful candidates.

Please see download for detailed call.

Inquiry

S.K. Omala via +256 772 491545 before April 20^th, 2026.

Advert Bilateral UniPd_Mak_Agreement_for Student Mobility Download

Business & Management

Mak CoBAMS Hosts UNISA’s Dr. Sizile Makola

Published

1 week ago

April 8, 2026

Ritah Namisango

L-R: Dr. Zaina Nakabuye, Dr. Jude Mugarura, Dr. Agnes Sansa, Dr. Sizile Makola, Prof Edward Bbaale and Dr. Anthony Tibaingana at the 8th April 2026 meeting in the Office of the Principal. Principal of the College of Business and Management Sciences (CoBAMS), Prof. Edward Bbaale welcomes Dr. Sizile Makola, a Senior Lecturer in Human Resource Management from the University of South Africa (UNISA), to the College and Makerere University, Kampala Uganda, East Africa, 8th April 2026.

On Wednesday 8^th April 2026 the Principal of the College of Business and Management Sciences (CoBAMS), Prof. Edward Bbaale received and welcomed, Dr. Sizile Makola, a Senior Lecturer in Human Resource Management from the University of South Africa (UNISA), to the College and Makerere University.

The interaction meeting held in the Office of the Principal brought onboard the following members of staff from the Department of Marketing and Management, School of Business: Dr. Jude Mugarura, Dr. Zaina Nakabuye, Dr. Agnes Sansa, and Dr. Anthony Tibaingana.

Dr.Sizile Makola is visiting Makerere University for two (2) weeks to cement the MoU between Makerere University and UNISA and to finalise her comparative studies with staff from the department of marketing and management on behalf of Makerere University for the Ugandan context.

Dr. Makola is scheduled to deliver an interactive guest lecture to undergraduate and postgraduate human resource management students on Friday 10^th April 2026 from 2:00pm to 4:00pm in the School of Business, Conference Hall.