Category: Daily Monitor

On the first Tuesday of this month, while travelling from the Bwaise interchange on the Northern bypass, specifically heading to the Nambole Interchange, we encountered an unexpected traffic jam near the last curve before the interchange. It quickly became apparent that the queue likely originated at the interchange or possibly from Bweyogerere, which is a common destination for many drivers in this area.

As we approached the curve, I noticed that the driver of the double-cabin pick-up truck had to brake suddenly from a speed of about 80 km/h. We managed to come to a safe stop, and I was grateful for that. However, I immediately started to worry that a larger vehicle, like a heavy goods truck or large bus, following closely behind us, might not be able to stop in time. The size and weight of those vehicles, combined with the possibility that their drivers might be distracted, could lead to a more dangerous situation.

Thanks to divine intervention, the increasing number of cars behind us managed to come to a stop safely. However, as we continued moving forward at a slow pace, we reached the final curve of this section 45 minutes later and noticed that a Volkswagen Golf hatchback had been crushed by a lorry that couldn’t stop in time. The impact from behind caused the hatchback to collide with another truck in front of it. As a result, it sustained damage to both the rear, which shattered the back windshield, and the front, and crumpled the hood.

During my postgraduate studies in transportation engineering, I became aware of the potential dangers we had narrowly avoided. I observed many accidents while moving on such freeways abroad, since they are with numerous freeways and expressways, where sudden traffic queues often form, forcing vehicles travelling at high speeds to halt abruptly. This experience made me grateful. On straight stretches of road, attentive drivers may spot these queues early enough to brake in time, especially on gently sloping sections.

However, on curved segments, the situation is much more hazardous due to limited visibility, which can prevent drivers from recognising the impending danger until it’s too late. However, these developed countries, which boast extensive freeways and expressways, have attempted to allay the likelihood of accidents by implementing systems that alert drivers to potential dangers, such as traffic queues, at least half a kilometre in advance. They achieve this through digital screens that display real-time conditions ahead or updated speed limits; failing to comply with these limits may result in fines.

Additionally, emergency response teams on specific expressways place warning signs about traffic slowdowns or accidents from considerable distances. One of the most cost-effective solutions would be to deploy traffic police to slow down vehicles before they reach these congested areas. Without such measures, the risk of accidents may increase, and many lives could be at stake, especially considering that a significant portion of the vehicles on these routes are heavy goods trucks.

The Uganda Wildlife Authority (UWA) has announced plans to deploy Uganda People’s Defence Forces (UPDF) soldiers in and around Mt Elgon National Park as part of efforts to strengthen conservation and protect the park from continued encroachment.

The move comes amid growing concern over illegal activities inside the protected area, including cultivation, tree cutting and poaching, which conservation officials say are threatening one of Uganda’s most fragile ecosystems. Mt Elgon National Park, which stretches across Bugisu and Sebei sub-regions, has for years been at the centre of recurring disputes between park authorities and neighbouring communities over boundary demarcation and access to resources.

Speaking during a stakeholders’ engagement ahead of the official launch of the Mbale Satellite Centre of the Uganda Wildlife Education and Conservation Centre (UWECC) in Mbale City recently, the UWA Commissioner for Community Conservation, Mr David Musingo, said the authority had sought support from the military to reinforce conservation efforts. Mr Musingo said the UPDF officers, who are currently undergoing training under the 3rd Division in Moroto, would help secure the park and support the enforcement of conservation laws.

‘People want to cut trees and others want to cultivate crops, knowing very well that it is a protected area. We are going to properly mark the boundaries so that our people do not get into trouble. Here we are going to add guns because the people want a hard way. We have invited 4,000 UPDF soldiers to join us to protect Mt Elgon,’ he said.

Justification

He added that UWA personnel had endured years of attacks while carrying out their duties. ‘Our rangers have been speared and others have been killed. I know our people have also been harassed. We are going to quickly use a gun and it will be a bit harder because we cannot watch when our people are being killed,’ Mr Musingo said. Despite supporting stronger enforcement measures, the commissioner emphasised that education and community engagement remained the most sustainable solutions to conservation challenges.

He explained that the newly established Mbale Satellite Centre would serve as a hub for wildlife education and sensitisation, helping communities understand the importance of conservation and the economic opportunities associated with tourism. ‘For me, I believe in the reduction of guns and increasing what you call educators. We need to create harmony, and that is why this centre has been opened,’ he said. Mr Musingo also raised concern over the disappearance of black-and-white colobus monkeys from parts of Mt Elgon National Park, attributing the decline to hunting for traditional Imbalu circumcision regalia.

‘We have lost all the black-and-white colobus monkeys in some areas because of hunting for Imbalu attire. We need to repopulate them again,’ he said. The stakeholders’ meeting also focused on the progress of the new Mbale Wildlife Centre, a facility that UWA officials believe will boost tourism in eastern Uganda and provide an important platform for conservation education.

Located along the Mbale-Tororo highway, the centre has been under construction since 2024. Most of the structures have already been completed, and several animals, including lions, monkeys, leopards, zebras, waterbucks, an ostrich and peacocks, have already been introduced.

The facility is being managed by the Uganda Wildlife Education and Conservation Centre and is expected to function both as a zoo and an educational centre. According to Mr Musingo, the project is intended to attract visitors to eastern Uganda and encourage them to explore other tourism destinations within the Bugisu and Sebei regions. ‘We have brought this facility to bring development to the region. It is going to spur tourism because animals themselves are a teaching aid,’ he said. He noted that Mbale’s strategic location near the Kenyan border and along major transport routes positions it well to benefit from regional tourism.

Mr Musingo revealed that tourism earnings from Bugisu remain significantly lower than those recorded in some of Uganda’s more established tourism destinations. ‘Few tourists are going to Mt Elgon National Park. I saw figures of about Shs10 million a year, yet in places such as Bwindi and Murchison Falls people are getting close to Shs1 billion,’ he said. UWA officials argue that expanding tourism infrastructure and increasing awareness about the region’s attractions could help close the gap. Acting Chief Warden of Mt Elgon National Park Godfrey Matanda backed the proposed military deployment, saying wildlife rangers had suffered repeated attacks while protecting the park.

‘More than 30 rangers have been injured and about five have died. We cannot continue like this. The guns are coming to keep the mountain safe, and for many years UWA has suffered so much in the hands of the locals,’ Mr Matanda said. The tourism sector has welcomed the development of the Mbale Wildlife Centre. Mr Saleh Naminya, the Chief Executive Officer of Casa Uganda Safaris and Lodges, said eastern Uganda had long struggled with limited tourism product development despite possessing significant attractions.

‘We now have an opportunity to add this unique wildlife centre to our coffee tourism and cultural experiences. Besides the animals, the setup gives visitors an opportunity to see wildlife in a more natural environment. This is the opportunity we have been waiting for,’ he said.

Benefits of centre

Mr Naminya said the facility would create opportunities for hotels, tour operators and entrepreneurs across the region. ‘To the hotel industry, it is a business opportunity, and for entrepreneurs, more opportunities are going to come up. This is a great opportunity but also exposure for our children,’ he said. Mr Moses Buyera, the head teacher of Mbale Secondary School, said the centre would reduce the costs schools incur when organising educational tours to Entebbe.

‘For schools in Mbale, this has answered the question of where children will be going for tours because we have been hiring buses, incurring a lot of costs and enduring long journeys to reach Entebbe. We hope all the animals will be here so that people will not have a reason to move to Kampala,’ he said. UWA officials also used the meeting to remind communities about regulations governing wildlife management. Mr Annuel Ainemagara, an animal keeper at UWA, warned residents against keeping wild animals without licences or attempting to rescue wildlife without authorisation.

‘It is only UWA-trained rangers and animal keepers who are authorised to conduct wildlife rescues in communities. One of the advantages of having this zoo in the community is that we shall also be rehabilitating animals, and we expect the community to cooperate,’ he said. Some participants, however, raised concerns that require attention if conservation efforts are to succeed.

Mr Mike Mungoma Matepe, a resident of Bulambuli District, appealed to UWA to help communities address increasing crop destruction by birds, particularly among rice farmers.

Retired entomologist and former Makerere University lecturer Peter Kiwuso said there was a need for extensive public awareness campaigns to address fears and misconceptions surrounding the wildlife centre. ‘Some people are saying they are bringing lions to terrorise people and their domestic animals. On the issue of the colobus monkey, we also need to provide alternatives for Imbalu headgear and tails,’ he said.

Mr Dan Mirembe, the officer-in-charge of the Mbale Wildlife Centre, said management plans to introduce additional species, including the Laurent frog, a rare amphibian found only on Mt Elgon and currently facing extinction threats. He urged communities living near protected areas to adopt farming practices that minimise human-wildlife conflict.

‘Communities should learn to adapt to living near conservation areas by planting crops that are not commonly eaten by animals,’ he said.

When Mayimuna wakes up to prepare breakfast, the tax clock begins to tick. The electricity, piped water, and groceries she consumes are all subject to an 18 percent Value Added Tax (VAT). This is an unavoidable consumption tax on basic items such as sugar, bread, and milk. Meanwhile, Magdalene pays fuel taxes before she even reaches her workplace. She pays these levies either directly at the pump or indirectly through her transport fares.

Magdalene’s transport fare to work is considered a personal expense. The government does not subsidise it, nor are employers legally required to cover it. Furthermore, any transport allowance she receives from her employer is fully taxable. Under Section 19 of the Income Tax Act, these allowances are treated as taxable employment income subject to Pay As You Earn (PAYE) tax.

The only way for Magdalene and Mayimuna to legally avoid this tax on their allowance is by becoming Members of Parliament. Until then, they will continue forking out Shs1,550 per litre of petrol and Shs1,230 per litre of diesel in taxes. Following the enactment of the Excise Duty (Amendment) Bill, 2026, which introduced a Shs200 per litre increase, the total tax will hit Shs1,750 for petrol and Shs1,430 for diesel starting in the new financial year, which is just days away.

When transacting via mobile money, Mayimuna and Magdalene face a 0.5 percent tax on withdrawal values, a 15 percent tax on service fees, and a 12 percent excise duty on airtime and data. By lunchtime, Peter will also pay VAT on his food. He faces an excise duty-another consumption tax-on beverages, eating directly into his disposable income. On his way home, Paul buys basic household goods such as soap, milk, and toilet paper. All of these carry an 18 percent VAT.

Paul works with a daily budget of Shs20,000 to Shs50,000. Taxes alone consume between Shs4,000 and Shs10,000 of his income every single day. If Paul diligently saved that tax amount daily, he would put aside between Shs1.4 million and Shs3.6 million in a year. This total surpasses the Shs1 million soft loan that households receive through the Parish Development Model (PDM) to invest in income-generating enterprises.

As Ugandan taxpayers, Paul, Peter, Magdalene, and Mayimuna generally see 20 to 50 percent of their income consumed by taxes embedded in the final retail cost of goods and services at any given time. This is the daily reality for most of the country’s 46 million citizens who go to sleep with a tax liability and wake up shouldering that same burden. As a result, they remain trapped in a vicious tax cycle. If Mayimuna, Magdalene, Paul or Peter runs a side hustle business, it will simply increase their tax obligations.

As a small trader, you must pay an annual Trade License fee to the local municipal council or the Kampala Capital City Authority to operate legally. Finally, when you sell goods or provide services to the government or designated large businesses, they may deduct an advance tax. This is usually a 6 percent withholding tax deducted directly from your payment.

Can’t tax into prosperity

The belief that a country can tax itself into prosperity is not only baffling but also akin to the primitive accumulation of revenue. This perhaps explains the famous words in Sir Winston Churchill’s political pamphlet, For Free Trade: ‘We contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself by the handle.’ While Churchill spoke in another era, researchers such as Mr Africa Kiiza believe the statement sharply resonates with present-day Uganda, where citizens are increasingly overtaxed amidst worsening public services and economic insecurity.

‘Suffice it to say, taxation in Uganda is no longer just about income; it is now woven into the fabric of daily survival,’ noted Mr Kiiza, a PhD fellow in the Faculty of Business, Economics, and Social Sciences at Universität Hamburg. Research by civil society organisations working on tax and financing for development has often illuminated that Uganda’s tax regime disproportionately burdens low-income earners.

According to recent data from the Ministry of Finance and the Uganda Revenue Authority, indirect and consumption-based taxes continue to dominate Uganda’s collections, with domestic taxes accounting for nearly 60 percent of total government revenue. Indirect and consumption-based taxes are paid regardless of whether one is rich or poor. ‘It is fair to say that Uganda’s tax regime increasingly taxes daily survival rather than wealth,’ said Mr Kiiza.

‘Ugandans are subjected to at least 10 major forms of taxation, including PAYE, VAT, excise duty, withholding tax, rental tax, customs duties, and local service taxes not to mention licenses, fees, and other statutory deductions. Even those outside formal employment cannot escape taxation, because taxes are embedded in almost every commodity and service consumed daily,’ he added.

What for?

According to Mr Kiiza, many Ugandans continue to navigate poor healthcare systems where they pay 30 percent of health costs out of pocket. This situation is worsened by the national debt crossing Shs130 trillion, meaning every Ugandan, including those born this morning shoulders a public debt burden of nearly Shs3 million. This burden is further compounded by the high doctor-to-patient ratio of 1:25,000, which is far higher than the World Health Organisation standard of 1:1,000, and the high national nurse-to-patient ratio of 1:11,000, which far exceeds the WHO-recommended 1:200 ratio.

This is in addition to collapsing drainage infrastructure, youth unemployment, unreliable public transport, and underfunded schools. But the irony lies in who gets tax holidays in Uganda. A study by the Ministry of Finance Tax Expenditure Report for FY2023/24 revealed that Uganda forewent Shs3.6 trillion in tax exemptions. ‘This is complicated by the misuse of public funds by public workers, with Shs10 trillion approximately 5 percent of Uganda’s GDP lost to corruption annually,’ Mr Kiiza says.

This is enough to fully construct and equip approximately 35-45 specialised health facilities in Uganda. Business Daily findings, corroborated by several studies including those by the Southern and Eastern Africa Trade Information and Negotiations Institute (SEATINI), the Civil Society Budget Advocacy Group (CSBAG), and WB/IMF reports, indicate that Uganda’s tax system is unreasonably burdensome.

When contacted last week, the executive director of CSBAG, Mr Julius Mukunda, described a typical day in the life of a Ugandan taxpayer as a daily endurance test. ‘They pay taxes on electricity, fuel, and airtime, but must still dig into their own pockets to pay for private security, private healthcare, and private schooling because public systems are failing them. ‘The Ugandan taxpayer is overstretched, underserved, and bearing a disproportionate weight of the national budget,’ Mr Mukunda said.

Asked whether a typical Ugandan get real value from the taxes they pay, Mr Mukunda who is also a budget and policy analyst, said: ‘Yes, but absolutely not adequately.’ He argues that Ugandans see some benefits through roads, schools, and public infrastructure and security-that keeps the country running. But he added: ‘For the average, day-to-day Ugandan, the answer is a resounding no.’ Furthermore, CSBAG’s budget monitoring across districts reveals that citizens continue paying more while facing poor healthcare, unemployment, corruption, and weak accountability

Remedies

But all is not lost. The government can rebuild confidence through three urgent measures. First, there must be radical transparency in public expenditure. Taxpayers must visibly see their money translating into functioning schools, hospitals, roads and decent public services. Uganda must also reduce overreliance on indirect taxation and adopt a more progressive tax regime where wealthier individuals, speculative sectors and multinational corporations contribute fairly.

Third, government must tackle illicit financial flows, corruption and wasteful tax exemptions. Sustainable domestic revenue cannot emerge from squeezing struggling citizens while billions leak from the system annually. ‘Ultimately, Ugandans are not resisting taxation itself. They are resisting a system where sacrifice is demanded without corresponding dignity, fairness or visible national transformation,’ concludes Mr Kiiza.

Government’s take

When contacted, the Deputy Secretary to the Treasury, Mr Patrick Ocailap, said the tax regime can’t be regressive. He asked: ‘How else can you be fair, ensure equity, and maintain affordability in a tax system without applying some level of indirect taxes? This kind of tax, he said, cannot be avoided in taxation. ‘For example, the 18 percent VAT is for everybody and is fair to all. Remember, fairness is one of the canons of taxation.’ Before that, the director of economic affairs at the Ministry of Finance, Mr Moses Kaggwa, said: ‘I don’t do a regime that is not fair. If you talk about tax burdening, in the case of an employee, they are only subjected to PAYE, and that’s all.’

While politicians are eager to spend taxpayers’ money and corporations continue to exploit tax avoidance and evasion loopholes, ordinary citizens remain the primary financiers of Uganda’s national budget.

In the previous financial year, Uganda Revenue Authority (URA) added nearly 730,000 new taxpayers, bringing the total number of registered taxpayers to 5.25 million.

However, according to the Auditor General’s Report, only 48 percent of registered taxpayers actually paid taxes.

This means that approximately 2.7 million taxpayers, about 52 percent of those registered, remain inactive. Of those who contributed revenue, 20 percent were employees under the Pay as You Earn (PAYE) system, where taxes are automatically deducted from salaries.

This suggests that growth in the taxpayer register has not been matched by effective compliance enforcement, particularly in corporate income taxation.

Before the 2025/26 financial year, Uganda’s domestic revenue collections increased from Shs22 trillion in the 2021/22 financial year to Shs32 trillion in 2024/25, representing a 46 percent increase over four years.

Yet this growth has not translated into a stronger revenue effort. Uganda’s tax-to-GDP ratio remains stagnant at 13.5 percent, below the 15 percent benchmark for developing countries, the sub-Saharan African average of 18.6 percent, and the global average of 23 percent.

This indicates that while the economy is growing and revenues are increasing, government is not capturing a larger share of national income, particularly from multinational corporations and high-net-worth individuals.

Revenue growth has largely mirrored economic expansion rather than reflecting structural improvements in tax mobilisation.

The same people paying more

Tax analysts and tax justice advocates describe this trend as tax deepening, a situation where government extracts more revenue from existing taxpayers rather than expanding the tax base.

The ordinary taxpayer pays PAYE, Value Added Tax (VAT) on purchases, excise duties on fuel, and other indirect taxes.

Meanwhile, corporations, investors, and wealthy individuals often benefit from tax exemptions, tax holidays, and the ability to repatriate up to 100 percent of their profits.

Members of Parliament (MPs) have also insulated themselves from part of the tax burden.

Although MPs pay PAYE on their basic salaries, they passed amendments exempting many of their allowances and emoluments from taxation, unlike the allowances earned by ordinary citizens.

At the same time, government borrowing continues to grow. Public debt is estimated at around Shs130 trillion.

If repaid immediately, every Ugandan, including newborn children, would carry a debt burden of roughly Shs3 million.

The country has already surpassed the 50 percent debt-to-GDP threshold, breaching the Ministry of Finance’s Charter for Fiscal Responsibility and exceeding levels often regarded by the International Monetary Fund (IMF) as prudent.

Today, nearly Shs40 out of every Shs100 collected in domestic revenue goes toward servicing debt, which significantly reduces the funds available for health, education, agriculture, and infrastructure.

Who really funds the budget?

When Daily Monitor interviewed citizens for this article, seven out of 10 respondents said government funds the budget. This reflects a broader civic awareness gap.

In reality, the budget is financed primarily by citizens and businesses through taxes and other revenues generated from economic activity. Government merely collects, allocates, and spends these resources.

Africa Kiiza, a PhD Fellow at the Faculty of Business, Economics and Social Sciences at Universität Hamburg, says the burden falls disproportionately on ordinary Ugandans.

On April 25, 2026, Parliament approved a Shs84.39 trillion budget for the 2026/27 financial year. Of this amount, Shs44.18 trillion, about 52 percent, will be financed domestically, largely through taxation.

Kiiza argues that Uganda’s revenue collection system increasingly relies on a narrow base of compliant and easily targeted taxpayers, particularly salaried workers and consumers.

‘A keen examination of URA’s revenue collection structure reveals a deeper imbalance, an increasing reliance on a narrow base of compliant and easy-to-target taxpayers,’ he says.

The target, he says, rotates around salaried workers and consumers, while at the same time, large corporations and high-net-worth actors often contribute less than their economic footprint would suggest.’

Kiiza further notes that tax evasion has become widespread among many corporations, despite their capacity to meet tax obligations. URA estimates that Uganda loses approximately $500m (Shs2 trillion) annually through money laundering and other illicit financial flows.

Corporate tax evasion

Uganda’s tax-to-GDP ratio has remained between 13 and 15 percent, below the 18-20 percent range often recommended by the IMF and World Bank for lower-middle-income economies seeking sustainable development financing.

According to Kiiza, this gap reflects weaknesses in tax enforcement, generous tax incentives, and persistent tax avoidance practices.

As a result, indirect taxes such as VAT and excise duty, which account for roughly 30-35 percent of URA collections, have become the backbone of government revenue. These taxes are inherently regressive because everyone pays them, including low-income households.

Every purchase, from fuel and transport to soap and household goods, contributes to financing the national budget.

Meanwhile, highly profitable sectors such as telecommunications, banking, extractives, and fast-moving consumer goods often reduce their effective tax burden through investment deductions, accelerated depreciation, loss carry-forwards, and sector-specific exemptions.

Uganda also faces challenges associated with profit shifting and transfer pricing, where multinational companies allocate costs and profits across subsidiaries to minimise taxable income in higher-tax jurisdictions.

Technical gaps remain

While URA has strengthened its audit capacity in recent years, significant technical gaps remain between tax authorities and multinational corporations.

According to Kiiza, local companies are increasingly adopting similar tax-minimisation strategies. In sectors such as manufacturing, agribusiness, and telecommunications, complex ownership structures and intra-group transactions often obscure actual profitability.

Uganda’s investment-led growth strategy has relied heavily on tax holidays and exemptions, especially within special economic zones, agro-processing, and export-oriented industries.

Fiscal analysts and civil society organisations estimate that these exemptions cost the country around 2 percent of GDP annually, about Shs5 trillion in foregone revenue.

Although such incentives are intended to attract investment and create jobs, weak enforcement of expiry provisions often transforms temporary incentives into long-term revenue losses.

Meanwhile, PAYE continues to be deducted automatically from formal workers. Small traders and consumers bear VAT and excise duties embedded in everyday goods and services. Even those in the informal sector contribute indirectly through consumption taxes.

The result is a fundamental paradox within Uganda’s tax system: those with the least bargaining power contribute most consistently, while those with the greatest capacity to structure and shift income often contribute proportionally less.

A question of fairness

Kiiza argues that Uganda’s budget is more than a technical financial document; it reflects economic power relations. ‘Answering who funds the national budget exposes a structural imbalance: a system increasingly sustained by ordinary citizens, while significant corporate and high-wealth fiscal space remains undertaxed, underenforced, or selectively exempted.’

Without reforms to tax incentives, stronger corporate transparency, improved enforcement, and greater international tax cooperation, he warns that the fairness and sustainability of Uganda’s fiscal system will remain in doubt.

Ultimately, these challenges could undermine Uganda’s long-term ambition of achieving meaningful middle-income status.

The government has unveiled various new tax measures for the Financial Year 2026/27 to raise domestic revenue and finance its ambitious national budget. The measures are expected to support the collection of Shs45.96 trillion in domestic revenue, including Shs40.16 trillion in tax revenue. While presenting the Budget for the Financial Year 2026/27 at Kololo Ceremonial Grounds yesterday, the Finance Minister, Mr Henry Musasizi, said the Parliament approved several tax policy reforms designed to strengthen revenue mobilisation while supporting economic growth, investment, and job creation.

Income Tax reforms

Among the key income tax measures is the extension of the income tax exemption granted to Bujagali Energy Limited until 2032, a move aimed at maintaining stability in the energy sector. The government has also increased the Pay As You Earn (PAYE) threshold from Shs235,000 to Shs335,000 per month, providing relief to low-income earners and increasing disposable income for workers.

In addition, a 5 percent withholding tax has been introduced on interest payments made to foreign lenders. Taxpayers earning rental income will now have the option of filing and paying rental income tax monthly, a measure expected to improve compliance and ease administration. The reforms further provide tax holidays for developers investing in high-end tourism facilities, as well as tax relief for Tier 4 financial institutions through deductions for bad debt provisions.

Value Added Tax (VAT) changes

To support small businesses and reduce compliance costs, the VAT registration threshold has been increased from Shs150 million to Shs300 million in annual turnover. The government has also extended VAT deferment to inputs used in iron ore processing, a move intended to support industrialisation and value addition within the mining sector.

Excise Duty adjustments

Several Excise Duty rates have been increased as part of the government’s strategy to generate additional revenue. The Excise Duty on petrol and diesel has been raised by Shs200 per litre. Alcoholic beverages will now attract Excise Duty of Shs3,500 per litre, up from Shs1,700. Motorcycles at first registration will be subject to a higher Excise Duty of Shs500,000, compared to the previous Shs200,000.

Environmental concerns have also influenced the tax reforms, with substantially higher Excise Duties imposed on single-use plastics to discourage pollution and environmental degradation. Other increases include Cooking oil: from Shs200 to Shs400 per litre. Cement: from Shs500 to Shs750 per 50-kilogramme bag. Sugar: from Shs100 to Shs200 per kilogramme. It should also be noted that the government has also introduced new Excise Duties on paints, varnishes, and cooking fats.

New Stamp Duty charges

Parliament approved the introduction of Stamp Duty on vehicle registration and transfers. Under the new rates, motorcycles, tricycles, and quadricycles will attract a Stamp Duty of Shs30,000, while other motor vehicles will be charged Shs200,000.

Tax relief measures

To ease the burden on taxpayers and encourage compliance, Parliament approved waivers of principal tax, penalties, and interest owed to the Uganda Revenue Authority (URA) as of June 30, 2016. The government has also extended existing waivers on outstanding interest and penalties, providing relief to eligible taxpayers and supporting business recovery.

External trade and gaming taxes

The environmental levy on imported used clothing has been increased from 15 percent to 30 percent of the Cost, Insurance, and Freight (CIF) value. The measure is intended to promote local textile and garment manufacturing by making imported second-hand clothing less competitive. Meanwhile, taxation on betting activities has been raised from 20 percent to 30 percent. The government says the increase is intended to harmonise taxation across gaming activities while generating additional revenue for the national budget.

Suzanne York does not trade in despair. After more than two decades working at the intersection of climate change, human rights, and global population dynamics, she has every reason to be cynical. She has seen global populations surge, watched international climate negotiations inch forward at a frustrating pace, and witnessed hard-won reproductive rights come under renewed threat. Yet she remains steady, grounded in a belief that action no matter how small still matters.

‘ Nobody really knows what’s going to happen,’ she says. ‘So we keep doing something. It can be something small. We don’t all have to be big activists calling for change. We just do what we can.’ It is this quiet persistence, rather than dramatic optimism, that defines York’s approach to one of the most complex challenges of our time.

A Career Built on Connection

As Director of Transition Earth, a project under the Earth Island Institute, York has spent over 25 years navigating the intersections many policymakers still treat separately. Her work cuts across nonprofit advocacy, government engagement, and international development, but its core message is simple: the world’s problems are deeply interconnected. Early in her career, York worked on globalization issues, traveling to international forums where she observed the unintended consequences of economic policy. In countries like Brazil and India, she saw how global trade systems often disadvantaged smallholder farmers, undermined food security, and intensified inequality.

In the Amazon, she witnessed how indigenous communities long regarded as stewards of biodiversity were increasingly marginalized in favor of extractive industries. These experiences reshaped her understanding of environmentalism. Protecting forests, she realised, could not be separated from protecting the people who depend on them. Climate change was not just an environmental issue; it was also about livelihoods, health systems, gender equity, and political power. ‘You can’t work in a silo,’ she explains. ‘You can’t just focus on women’s health without also addressing climate change. Everything is connected.’

This philosophy aligns with the Population, Health, and Environment (PHE) model, an integrated development approach that links reproductive health services, environmental conservation, and sustainable livelihoods. Research from organisations like United Nations Population Fund and World Health Organisation reinforces this view, showing that access to education, healthcare, and family planning not only improves individual well-being but also strengthens climate resilience and reduces pressure on ecosystems.

The work of holding the threads together

Founded in 2015, Transition Earth operates as a platform for awareness, dialogue, and connection. Through blogs, webinars, reports, and digital storytelling, the initiative brings together voices that are often fragmented across disciplines. On the surface, the work may appear modest. There are no sweeping policy mandates or billion-dollar interventions. But York sees it differently: as essential connective tissue in a world where climate discourse is often siloed. ‘It’s my chance to work on issues I care about,’ she says. ‘It’s just so beautiful to really raise awareness.’

In an era dominated by high-level climate summits such as the Conference of the Parties (COP), York offers a measured critique. While acknowledging the importance of these global gatherings in fostering partnerships and visibility, she questions their pace and impact. ‘There’s some value in the connections people make,’ she says. ‘But the pace of change is so slow and we need quicker change nowadays.’ Instead, she points to smaller, solution-oriented convenings and grassroots initiatives as spaces where tangible progress often happens faster. This reflects a growing consensus in climate governance research: that localised, community-driven approaches frequently deliver more immediate and context-specific results than large-scale negotiations alone.

The weight of the moment

York does not shy away from the emotional toll of her work. ‘I feel overwhelmed quite often,’ she admits. ‘Every year we have more challenges.’ From rising global temperatures and biodiversity loss to widening inequality and the erosion of reproductive rights, the scale of today’s crises can feel relentless. In the United States, recent rollbacks in reproductive healthcare protections have added a deeply personal dimension to her advocacy.

Globally, these challenges are interconnected.

Studies by the Intergovernmental Panel on Climate Change highlight how climate change disproportionately affects women and vulnerable communities, particularly in developing regions. Limited access to education and healthcare, including family planning, can exacerbate poverty cycles and reduce adaptive capacity in the face of climate shocks. For York, this is precisely why reproductive rights are not a separate issue but a central one. Empowering women, she argues, is fundamental to environmental sustainability.

When women have access to education, healthcare, and economic opportunities, communities tend to experience improved environmental outcomes, from reduced deforestation to better resource management. Similarly, indigenous land rights remain critical. In biodiversity-rich regions like the Amazon, indigenous-managed lands have been shown to have significantly lower deforestation rates compared to other areas. Protecting these communities is not only a matter of justice it is a climate strategy.

Looking Forward: Betting on the Next Generation

Despite the weight of these challenges, York’s vision for the future is strikingly grounded and hopeful. Over the next five years, she wants to grow Transition Earth into a more dynamic, youth-driven platform. Her goal is not scale for its own sake, but impact through fresh voices and perspectives. ‘Even if it’s just a team of four young people,’ she says, ‘that’s a big change for us. That would be a really great way to push our issues into the mainstream.’

This emphasis on youth is more than symbolic. Across the globe, young people are increasingly at the forefront of climate activism, policy innovation, and digital advocacy. From local community initiatives to global movements, they are reshaping how environmental and social issues are understood and addressed. York sees them not just as participants, but as leaders of the next phase of change.

The Power of Trying

In the end, what sustains York is not certainty but possibility. When the news cycle turns bleak, she returns to the simplest act: creating, communicating, contributing. Whether it is a newsletter, a webinar, or a story, it is a way of pushing back against inertia. ‘We put together this newsletter,’ she recalls of one particularly difficult week, ‘and I thought: at least we’re trying.’ ‘The world can change on a dime. We just don’t know. So we have to try.’ She adds In a time defined by uncertainty, that insistence to keep trying, to keep connecting, to keep believing in incremental change may be one of the most radical acts of all.

Uganda’s rising public debt and the increasing cost of servicing that debt are emerging as major concerns for policymakers and economists, who warn that the trend could undermine the country’s long-term economic growth and development ambitions. The warning comes as the country’s debt stock continues to grow, driven largely by increased government borrowing to finance infrastructure projects, support economic recovery following the Covid-19 pandemic and bridge persistent budget deficits.

According to the Bank of Uganda’s State of the Economy Report for March 2026, Uganda’s provisional total public debt stock increased by 21.2 percent to Shs130.22 trillion by the end of January 2026, compared to the same period in January 2025. The Central Bank cautions that while Uganda’s debt remains sustainable, the growing burden of debt servicing is placing significant pressure on public finances.

‘High borrowing costs continue to bear down on the budget, even as emerging geopolitical tensions could exert pressure to spend,’ the Bank of Uganda noted in the report. The report projected interest payments on public debt to rise to 4.7 percent of Gross Domestic Product (GDP) in the 2025/26 financial year, up from 3.7 percent in 2024/25. This increase was expected to crowd out spending on critical sectors such as health, education and infrastructure.

Fiscal space under pressure

Debt servicing is consuming an increasingly large share of government revenue. The Bank of Uganda estimates that debt service obligations amounted to 35.7 percent of domestic revenue in the 2024/25 financial year and are projected to peak at 45.3 percent in 2025/26, before averaging about 40 percent over the medium-term. ‘This is unsustainable and calls for fiscal prudence going forward,” the Central Bank warned. Economists argue that the growing debt burden leaves the government with fewer resources to respond to economic shocks and limits its ability to invest in development priorities.

The Bank of Uganda further notes that high debt service costs can interfere with broader economic activity by increasing the cost of capital, complicating monetary policy implementation and potentially threatening financial stability if investors begin to doubt the government’s capacity to meet its obligations. Nevertheless, Uganda’s debt sustainability assessment for the year ending June 2025 classified the country as facing a moderate risk of debt distress, with public debt remaining sustainable in the medium to long-term. The Central Bank maintains that Uganda retains the capacity to meet its debt obligations without requiring exceptional financial assistance or defaulting on repayments.

Public debt, measured in present value terms, is projected to peak at 49.4 percent of Gross Domestic Product (GDP) in the 2025/26 financial year, remaining below the 50 percent threshold set under the East African Community convergence criteria. However, the favourable outlook depends on continued fiscal discipline, the timely commencement of commercial oil production, prudent management of oil revenues and successful implementation of the government’s ten-fold growth strategy.

A decade of rising debt

Uganda’s public debt has grown steadily over recent years. In December 2021, the country’s total public debt stood at Shs73.5 trillion, equivalent to approximately $20.7 billion. External debt accounted for Shs45.72 trillion, while domestic debt stood at Shs27.77 trillion, representing a debt-to-GDP ratio of 49.7 percent. The government attributed much of the increase to financing pandemic-related interventions, cushioning households and businesses from economic shocks, and covering revenue shortfalls.

By December 2022, public debt had risen to Shs80.8 trillion ($21.7 billion), with projections indicating an increase to Shs88.9 trillion by June 2023. At the end of December 2023, Uganda’s total public debt had climbed further to Shs93.38 trillion ($24.69 billion), comprising Shs55.37 trillion in external debt and Shs38.01 trillion in domestic debt. The Finance Ministry projected public debt to reach Shs97.64 trillion by June 2024, equivalent to $25.7 billion. The latest figures from the Bank of Uganda now place the debt stock at over Shs130 trillion, highlighting the rapid pace at which government obligations have expanded.

Debt servicing largest budget item

The growing debt burden is becoming increasingly evident in Uganda’s National Budget. For the 2026/27 financial year, the government plans to spend approximately Shs33.4 trillion on debt servicing alone, representing nearly 40 percent of the Shs84.3 trillion national budget. Interest payments are projected at Shs12.4 trillion, driven largely by domestic borrowing, while principal repayments will push total debt servicing costs above Shs33 trillion, making it the largest expenditure item in the budget.

In a minority report presented during parliamentary debate on the 2026/27 budget, former Kira Municipality Member of Parliament Ibrahim Ssemujju Nganda highlighted the growing fiscal burden. The report indicated that the government plans to borrow Shs11.27 trillion externally and Shs25.78 trillion domestically, while debt servicing will consume Shs33.6 trillion, equivalent to 39.8 percent of the total national budget.

Economists raise alarm

Economists warn that the increasing share of resources devoted to debt repayment could significantly undermine Uganda’s growth prospects. Dr John Mutenyo, a senior lecturer at the College of Business and Management Sciences, said in an interview with the Daily Monitor at Makerere University on June 10 that borrowing itself is not necessarily harmful, but excessive debt servicing can become a serious obstacle to development. ‘Borrowing is not bad per se, but high debt servicing is dangerous because it eats into public resources. When borrowing becomes excessive and debt servicing obligations increase, the government is left with limited resources for service delivery, roads, and other development projects.

This will seriously affect the country’s growth prospects,’ he argued. Dr Mutenyo observed that an increasing share of government revenue is being directed toward debt repayments, leaving less money available for productive investments. ‘All you are left with is money for paying salaries, Parliament, administration and other recurrent expenditures. Money for development projects becomes limited because the government must first meet its debt obligations,’ he said. He warned that reduced investment in infrastructure and other productive sectors could slow economic growth. ‘If you are not investing, you cannot grow. It is very dangerous for the economy.’

Dr Mutenyo argues that the most practical solution is to reduce new borrowing, while gradually paying down existing debt. He further stated: ‘If borrowing is reduced, the government can progressively pay off old debt, both principal and interest. Eventually, less money will be spent on debt servicing, creating room for investment in infrastructure and other services.’ He cautioned that continued borrowing would only increase future repayment obligations and make it more difficult to achieve Uganda’s long-term development goals.

Efficient use of borrowed funds critical

Dr Brian Sserunjogi, a research fellow in the Macro-economics Department at the Economic Policy Research Centre, agrees that debt remains a concern, but argues that the quality of spending matters just as much as the level of borrowing. ‘Countries such as China, Japan and the US borrow extensively. The issue is whether borrowed funds are invested efficiently and generate economic returns,’ he said. Dr Sserunjogi emphasised the need to strengthen public investment management, reduce project inefficiencies and ensure that borrowed resources finance projects capable of generating economic growth and future revenues.

He also identified low national savings as another obstacle to Uganda’s economic transformation. Many Ugandans still save through informal investments rather than formal financial institutions, while low household incomes limit the ability to save. ‘If people can go for a week without handling money, building a savings culture becomes difficult,’ Dr Sserunjogi observed.

Balancing growth and sustainability

Despite concerns over debt levels, Uganda’s debt indicators remain within internationally accepted thresholds, and the government maintains that borrowing has been necessary to finance infrastructure development and support economic recovery. The government has introduced various initiatives aimed at promoting savings, including voluntary savings schemes and efforts to deepen capital markets.

However, both the Bank of Uganda and independent economists agree that maintaining debt sustainability will require greater fiscal discipline, improved domestic revenue mobilisation, efficient public spending and careful management of future borrowing. As Uganda prepares for the anticipated oil production era and pursues its ambitious economic transformation agenda, the challenge for policymakers will be balancing development financing needs with the imperative of preventing debt from becoming a constraint on future growth.

The coming years will determine whether public borrowing serves as a catalyst for economic transformation or evolves into a growing burden that limits Uganda’s development potential.

A Kampala court has sentenced a 31-year-old businesswoman to a fine of Shs 100,000 or two months in prison for unlawfully obtaining and disclosing a client’s personal data.

Finah Atlist, a resident of Kalerwe zone in Kampala, was sentenced on Friday, June 12, 2026, by Makindye Grade One Magistrate Geoffrey Akena. The conviction followed a successful plea bargain agreement between Atlist and the prosecution, an arrangement where an accused person pleads guilty in exchange for a lighter sentence.

“You are convicted on your plea of guilty,” Magistrate Akena ruled.

The prosecution established that in October 2025, Atlist and others still at large-acting as agents for Gold Credit, an online money lending application-unlawfully obtained and disclosed the National Identity Card details of a client, Apecho Oliver, to third parties without authorization.

Atlist pleaded guilty to the unlawful obtaining and disclosure of personal data, which violates Section 35 of the Data Protection and Privacy Act, 2019, and Regulation 34 of the Data Protection and Privacy Regulations. She further admitted to operating without registering with the Personal Data Protection Office, contrary to Section 29(3) of the same law.

While Uganda’s Data Protection and Privacy Act, 2019 strictly regulates how personal information is collected and processed, digital rights experts warn that data breaches remain a persistent threat in the country. The problem is heavily fueled by rapid digitalization, weak enforcement mechanisms, and a lack of public awareness regarding digital rights.

The vulnerabilities in Uganda’s data systems were highlighted in a recent report by Unwanted Witness, a civil society organization advocating for digital rights. The regional survey, which assessed 48 companies across Uganda, Kenya, Mauritius, and Zimbabwe, revealed that Uganda still lags significantly behind in safeguarding personal data.

According to the Unwanted Witness index, Kenya recorded the highest overall data protection score at 47.3 percent, while Zimbabwe ranked the lowest at 23.1 percent. Across the evaluated sectors, e-commerce platforms performed the best with a compliance score of 50.1 percent, closely followed by digital lending services at 44.9 percent. In contrast, telecommunications and financial services tied at 39.7 percent, online betting scored 33.8 percent, and e-government platforms ranked the lowest at a meager 11.1 percent.

‘There is food at home’. That is what my mum used to say when my siblings and I asked for chips-chaps or chips-chicken while driving home from church on Sundays. At the time, it felt disappointing, but adulthood has made the lesson clearer. Imagine depending on a restaurant for every meal. What happens if it closes, prices suddenly double, or there is a shortage, and it simply cannot serve you? That is when you appreciate the value of having food at home and the ability to cook for yourself.

In many ways, that is similar to how energy works. For Uganda, it may seem easier to export crude oil and import refined products from countries with large refineries. Many countries do exactly that. However, relying entirely on external suppliers also means depending on decisions, systems, and supply chains outside the country’s control. Recent conflicts in the Gulf region disrupted global energy supplies and demonstrated how vulnerable countries become when they depend heavily on imported fuel. Once you rely on others for something as essential as energy, the importance of having your own ‘food at home’ becomes much clearer.

Firstly, cooking at home lets you plan better. You decide what, when and how much to cook. In energy, this is what economists call energy security. The ability to have reliable and predictable access to the fuel you need, without being fully exposed to disruptions outside your control. Uganda’s demand for petroleum products continues to rise. This matters because Uganda’s demand for petroleum products continues to rise steadily. According to the Uganda Bureau of Statistics, consumption exceeded 6.5 million litres per day in 2023, equivalent to roughly 41,000 barrels daily and representing a 10 percent increase from the previous year.

At present, nearly all of this demand is met through imports, which leaves the country vulnerable to shipping delays, supply shortages, and regional logistics challenges. Uganda’s planned refinery, with a proposed capacity of 60,000 barrels per day, would help meet current and growing demand locally. Although it would not completely shield Uganda from global market pressures, it would reduce dependence on foreign supply chains and provide the country with greater stability during periods of disruption.

Second, having food at home can reduce costs by avoiding constant spending outside the household. Economists describe this as import substitution: replacing imported goods with locally produced alternatives so that less money is spent abroad and more circulates within the domestic economy. Petroleum products remain one of Uganda’s largest imports, costing the country more than USD 2bn in 2023. When fuel is imported, money leaves the economy to pay foreign refiners and suppliers. Refining crude oil locally would allow a significant share of this spending to remain within Uganda through local businesses, workers, suppliers, and government revenues.

Finally, cooking at home keeps more value within the household. Uganda’s case goes even further because the country already has the ‘garden’: its own crude oil reserves. Exporting crude only to import refined products back is like harvesting your own matooke, then paying someone else to cook and sell it back to you. When crude oil is exported and refined products imported, much of the value created along the supply chain is captured elsewhere. This is reflected in the gap between crude oil prices and refined petroleum products sold in Uganda.

For example, if we considered April 2026 crude oil prices, if Uganda’s crude sells at a net-backed price of about USD 100 per barrel, while the combined value of refined products is around USD 200 per barrel, the difference of USD 100 per barrel, represents value added through refining and distribution. A domestic refinery would not capture all of that value, but it would allow Uganda to retain a meaningful share through refining margins, local supply chains, jobs, and tax revenues.

Beyond the refinery itself, this can also stimulate other industries such as petrochemicals, plastics, fertilisers, etc. At the end of the day, a refinery gives Uganda greater control over something as essential as energy. I suppose mothers are usually right: it is always better to have some food at home than to depend entirely on eating out.

A community-based environment programme is succeeding in restoring degraded fragile ecosystems in the districts of Bushenyi, Mitooma and Sheema. The initiative under Kitagata Water Catchment Protection project that started in 2025, has seen 51.11 acres of wetlands restored, 400 bamboo, 10,000 Calliandra and 125,800 trees planted in communities. Mr Innocent Tumwesigye, the project manager, says the project was started after it was realised that enforcement alone was not giving results. It was then decided that engaging communities would offer a lasting solution.

‘We started with sensitising communities and recruited 540 of them to be champions for this project. These members, together with our team, moved and engaged the larger communities including those that were engaged in depleting the environment such as sand miners and wetland encroachers,’ Mr Tumwesigye said. He said with the help of local leaders, residents came to appreciate the importance of conserving the environment and have since become watchdogs who closely monitor who degrades wetlands or carries out illegal activities.

Mr Tumwesigye said when gabions when constructed under the project, swamps and grassland regenerated and the communities became excited and vowed to protect them. ‘They started seeing wetlands as a resource, where they could get grass for mulching their gardens, pasture for their animals and fish. The local communities are now enforcing restoration efforts and protecting the environment themselves,’ he said. Mr Mabaati Mwebembezi Mabaati, the leader of sand miners in Kizinda-Kigoma Town Council, said after sensitisation, they now carry out controlled sand-mining, which does not destroy the environment.

‘As we mine, we ensure roads and wetlands are not encroached on and the gullies are filled. We always seek guidance from authorities and we have guidelines. Whoever tries to breach these guidelines is stopped or reported to authorities,’ he said.

He said all miners are now required to plant trees in areas they operate from. He said the trees are supplied free of charge to the miners. Mr Posiano Azairwe, one of the local leaders implementing the project in Mitooma District, said what people lacked was sensitisation.

‘Issues of environment do need force and enforcement alone. When technical people and leaders come to the grassroots, local people are capable of implementing projects and policies without wasting resources. People are now competing on who has planted more trees,’ he said. The Sheema Resident District Commissioner, Ms Jane Asiimwe Muhindo, said the project has proved that community engagement is the best tool in implementation projects. ‘Community engagement breeds a sense of ownership. We have seen with this project that people have realised the importance of protecting the environment. The local communities can earn and our work on environmental conservation has been simplified,’ Ms Muhindo said.

Mr Hillary Igambiriine, the resident district commissioner for Bushenyi , commended the initiative for promoting environmental conservation. ‘As part of this programme, farmers are being registered and sensitised to protect the catchment areas serving the Warugo and Kitagata Water treatment plants and Nyaruzinga, among other wetlands. Human activities such as brick-making, sand-mining, and wetland-encroachment are beginning to reduce because of this project,’ Mr Igambiriine said. Ms Rose Kebirungi, the deputy chief administrative officer of Sheema District, highlighted the growing challenge of water scarcity across the Greater Bushenyi Sub-region, which she attributed to environmental degradation.

Mr Benedict Naturinda, the stakeholder mobilisation consultant of the project, said the project has had some challenges which include destruction of young trees by animals, bushfires and soil erosion. The project is implemented by National Water and Sewerage Corporation in partnership with World Wide Fund for Nature (WWF) and the World Bank. Other participants include Cool wave Contractors, which constructed stone gabions and animal watering points; Keirere Green Africa Agency (KEGRA), which spearheaded restoration activities through tree-planting; and Cielo Country Inn Projects Ltd, which coordinated stakeholder engagement, community mobilisation, awareness creation and capacity-building activities.