The Ministry of Local Government (MOLG) has challenged local technical and political leaders to build financially independent and resilient local governments capable of transforming Ugandan communities.
The call was made by the Permanent Secretary, Ben Kumumanya, in a message delivered by Onesmus Mulondo, the Finance Programme Management Specialist for Local Government Public Finance Management reforms.
Mulondo was speaking on September 28, 2026, at Hotel Brovad in Masaka City during a regional training workshop for local leaders.
Kumumanya emphasized that fiscal decentralization was never meant to create permanent dependency on the central government. Instead, it was designed to empower districts to drive local economic development using local resources.
“With the growing public demands for better roads, clean water, education, and improved health care, we must generate our own resources to meet these expectations,” Kumumanya stated.
To curb revenue leakages caused by cash collections, the Permanent Secretary advised finance managers to embrace complete digitalization. He also cautioned against overtaxing existing small businesses, urging leaders to diversify their revenue streams instead.
“This will be possible if you map out property valuations, explore local tourism potential, formalize public markets, and leverage public-private partnerships to build commercial assets,” he noted.
Kumumanya stressed that revenue collection must be entirely data-driven, requiring comprehensive taxpayer registration and regular updates to revenue registers. He further warned technical officers that future renewals of their performance contracts will strictly depend on their ability to meet local revenue targets.
“We will no longer tolerate passive leaders who watch local revenue decline while blaming the centre for budget cuts,” Kumumanya warned, adding that building taxpayer confidence requires accountability and visible service delivery.
The five-day training workshop, facilitated by revenue consultant Patrick Kandole, is part of a broader MOLG initiative to develop Revenue Enhancement Plans (REPs) and support the implementation of the Local Government Revenue Mobilisation Strategy (LG-RMS).
By the end of the workshop, participants are expected to produce comprehensive local revenue profiles, annual targets, and realistic projections.
Similar regional training workshops are scheduled to take place in Lira, Moroto, Mbale, and Mbarara.
The Ministry of Local Government (MOLG) is pushing local governments to transition away from central government dependency and achieve fiscal sustainability to meet the rising demand for public services (roads, water, health, and education).
Finance managers have been directed to transition to complete digitalization to eliminate revenue leakages associated with physical cash collection.
To boost collections without overtaxing small businesses, local leaders must build updated, comprehensive taxpayer registers. Growth strategies include property valuations, tourism mapping, formalizing public markets, and launching public-private partnerships (PPPs).
Performance contract renewals for local leaders will now be directly tied to meeting local revenue targets. Passive management will no some longer be tolerated.
The ongoing five-day training at Hotel Brovad—led by consultant Patrick Kandole—will equip leaders to draft Revenue Enhancement Plans (REPs). Participants will exit with clear revenue profiles, targets, and monitoring frameworks.
This initiative supports the wider Local Government Revenue Mobilisation Strategy (LG-RMS), with subsequent regional rollouts planned for Lira, Moroto, Mbale, and Mbarara.
