Politics 27 March 2026 The Observer (Uganda)
URA Under Fire for Shs18bn Rent Plan Despite Shs140bn Nakawa Tower
Parliament's finance committee has grilled the Uganda Revenue Authority over its proposal to spend Shs18 billion yearly on office rent at Pearl Tower, seven years after completing its Shs140 billion Nakawa headquarters meant to cut such costs. Lawmakers also probed high budget items like welfare, training, and ICT amid concerns over revenue growth and tax compliance. Source: https://observer.ug/news/ura-seeks-shs-18bn-for-rent-despite-shs-140bn-nakawa-headquarters
The Uganda Revenue Authority (URA) faced sharp questions from MPs during a parliamentary committee meeting on its 2026/27 budget plans. Chaired by Amos Kankunda, the Finance, Planning and Economic Development committee scrutinized URA’s request for Shs18 billion in annual rent for Pearl Tower space.
This comes seven years after URA commissioned its 22-storey Nakawa headquarters at a cost of Shs140 billion in 2019, designed to house all operations and slash rental expenses. MPs like Hanifah Nabukeera and Ibrahim Ssemujju Nganda challenged the need for extra space, with Ssemujju accusing URA of favoring landlords.
URA’s Customs Commissioner Abel Kagumire explained that the Nakawa tower holds under 2,000 staff, far short of the agency’s 4,942 employees, requiring additional offices. Previously, URA rented multiple Kampala locations before consolidation efforts.
Despite hitting 100.84% of its revenue target at Shs31.643 trillion last year, MPs flagged issues like Uganda’s low 13-15% tax-to-GDP ratio and uneven growth between domestic and trade taxes. They questioned slow domestic tax rises despite programs like Parish Development Model.
High budget lines drew ire too: Shs23 billion for welfare and entertainment, Shs13.5 billion for workshops, Shs18 billion for training, and Shs69 billion for ICT. MPs demanded details on medical spending and past audit red flags, while noting URA’s budget dip to Shs877 billion next year and a Shs41.513 trillion target.
Concerns extended to infrastructure bottlenecks like traffic and borders hampering collections, plus compliance gaps in PAYE filings.
Source: The Observer (Uganda)