New cities grow annual local revenue collections by Shs13 billion

Local government Minister Raphael Magyezi looks on as officials sign during the launch of the Cities Expo and Symposium in Kampala on January 22, 2025. Photo/Busein Samilu
What you need to know:
- Mr Magyezi said that the transformation is yielding results and challenged skeptics to visit the cities to witness the developments.
The ten cities recently elevated from municipalities are now collecting significantly more revenue than before, the Minister for Local Government, Mr. Raphael Magyezi, has revealed.
Speaking during the launch of the forthcoming Cities Expo and Symposium in Kampala on January 22, Mr Magyezi dismissed critics who previously claimed that the elevation to city status was poorly calculated.
He noted that the new cities have achieved remarkable progress in revenue collection, infrastructure development, physical planning, garbage management, and addressing staffing gaps.
“All the ten cities have automated their revenue administration. Cities have gone a long way in improving service delivery. They have been able to buy equipment, some have acquired garbage trucks, and others have improved emoluments for their political leaders,” Mr Magyezi said.
Nine out of the ten cities—Arua, Gulu, Mbarara, Fort Portal, Mbale, Masaka, Hoima, Lira, and Soroti—recorded a significant increase in revenue, growing from Shs19.6 billion in FY2022/23 to Shs32.7 billion in FY2023/24.
Mbarara City led the revenue growth, increasing from Shs3.8 billion in FY2022/23 to Shs5.7 billion in FY2023/24. Arua followed with a rise from Shs1.6 billion to Shs4.4 billion, while Gulu grew its revenue from Shs3.2 billion to Shs4.8 billion over the same period.
Other cities also posted gains: Lira increased from Shs2.1 billion to Shs3.9 billion, Masaka grew from Shs2.4 billion to Shs3 billion, Mbale rose from Shs1.5 billion to Shs2.5 billion, Fort Portal climbed from Shs2.3 billion to Shs2.5 billion, Hoima increased from Shs1.3 billion to Shs1.9 billion and Soroti grew from Shs1.3 billion to Shs1.7 billion.
Mr Magyezi attributed the increase to additional government financing for cities, which has been utilized for beautification, garbage collection, purchasing vehicles and road equipment, and improving administration.
“Cities now have approved human resource structures customized to meet their strategic functions. All 10 cities have fully constituted service commissions and have recruited staff. Each city received an additional Shs2 billion in wages and attracted highly skilled technical personnel,” he explained.
Parliament had, on April 28, 2020, approved the elevation of 15 municipalities to city status.
Ten of these, including Mbale, Soroti, Jinja, Lira, Gulu, Mbarara, Fort Portal, Arua, Masaka, and Hoima, have since been operationalized. The remaining municipalities, including Entebbe, Nakasongola, Moroto, Kabale, and Wakiso, are yet to be elevated.
Mr Magyezi said that the transformation is yielding results and challenged skeptics to visit the cities to witness the developments. He called on Mayors and Town Clerks to showcase these achievements during the Cities Expo and Symposium scheduled for March 15–18 in Mbarara City.
Lands Minister Judith Nabakooba, in a speech delivered by the Commissioner of Urban Planning, Mr. Joseph Walter Pader, highlighted the rapid urbanization rate of 5.2 percent and urged cities to prioritize proper planning.
Mr. Ahmed Kaweesi, Chairperson of the Cities Consortium, noted that the symposium would provide a platform for leaders to discuss and adopt strategies for sustainable city development.