Traders to pay KCCA taxes using mobile money

Monday August 17 2015

By Lilian Namagembe

Kampala.

Traders making periodic payments to Kampala Capital City Authority (KCCA), will no longer have to queue to fill forms.
This follows a newly launched partnership between MTN, a telecom company, and KCCA to effect payment of taxes to the city authority using the mobile money service.

According to Ms Jenniffer Musisi, the Executive Director of KCCA, the move is part of the authority’s strategic plan to automate the entire revenue collection process targeting improved revenue collection.

“Today’s event seeks to broaden the existing Revenue collection channels by bringing on board mobile money services to facilitate KCCA fees collection,” Ms Musisi said during the project’s launch last Friday.

Ms Musisi also noted that “the partnership will benefit traders to enjoy greater comfort and convenience as they will be able to pay KCCA revenues from anywhere and at anytime as long as one has a mobile money account.”

The MTN Chief Executive Officer, Mr Brian Gouldie, said the new service offers the company an opportunity to extend proposition for SMEs and traders around Kampala as well as ease and convenience to customers.

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“It is therefore, a remarkable milestone to have KCCA embracing the MTN mobile money service and as we launch this partnership, I am hopeful KCCA’s clients will find it convenient, safe and secure.” Mr Gouldie said.

The mobile money system of sending and receiving money using mobile phones was introduced in Uganda in 2009. It has been embraced by MTN, Airtel and Uganda Telecom.
By June 2015, MTN Uganda recorded 11.1 million subscribers across the country.

The service has since gained high subscription from mobile phone users, especially traders for its convenience as opposed to the traditional banking system.

However, the service has also been criticized for its weaknesses in terms of poor network which has, most of the time, inconvenienced urgent transactions, and suffered fraud related cases that have been rampant.

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