Kampala. For the first time in a Ugandan town, Global Credit Ratings (GCR) has accorded Kampala Capital City Authority (KCCA) an initial credit rating of A in the long term and A1- in the short term.
This was declared at the recent 2015 credit Worthiness Academy organised by the World Bank at Entebbe in Kampala.
Mr Joshua Ogallo, the task team leader from the World Bank, lauded KCCA on the milestone and continued progress in the revenue and treasury management since the first academy in Nairobi in 2012.
“KCCA does fit in that category now because they have put in place strong management systems and leadership to achieve such results,” Mr Patrick Birungi, the director development planning in the National Planning Authority, said.
Ms Eyal Shevel, the head of local authority ratings at GCR, said: “KCCA has made significant strides in improving its level of service delivery. This has been facilitated by a corporatised approach to managing the city, which has driven efficiencies and best practices throughout the organisation.”
GCR found that the city authority has made significant progress in updating its property register, licensing taxis and other businesses, and generally expanding the rates and fees base. Combined with improved debt collection, this has seen internal revenue rise from Shs40 billion in 2012 to Shs72b in 2014.
Internal revenue is expected to rise sharply to comprise around 40 per cent of total income in the next financial year.
The academy seeks to develop the capacity of municipal agencies to enhance the mobilisation of own source revenue.
while building strong financial systems needed to improve institutional efficiencies.
Mr Birungi credited the innovations at the authority noting that if it continues to build new effective systems, then it is bound to continue exceeding expectations.
Last year, KCCA launched a new revenue collection system code named e-Citie in a bid to ease revenue collection.