UGANDA, Kampala | Real Muloodi News | New cities in Uganda have recorded a significant increase in revenue, adding USh13 billion to annual local revenue collections, according to the Minister for Local Government, Raphael Magyezi.
The progress highlights the financial potential of the ten cities elevated from municipalities, including Arua, Gulu, Mbarara, Fort Portal, Mbale, Masaka, Hoima, Lira, Soroti, and Jinja.
During the launch of the upcoming Cities Expo and Symposium in Kampala on January 22, Magyezi revealed that revenue collections grew from USh19.6 billion in FY2022/23 to USh32.7 billion in FY2023/24. He emphasised the transformative impact of city status, dismissing earlier scepticism about the elevation’s viability.
“All ten cities have automated revenue administration and improved service delivery,” Magyezi said. “They have acquired garbage trucks, road equipment, and enhanced emoluments for political leaders. This is a clear indication of progress.”
The highest increase in revenue was reported in Mbarara City, which grew from USh3.8 billion in FY2022/23 to USh5.7 billion in FY2023/24. Gulu City followed, with collections rising from USh3.2 billion to USh4.8 billion. Arua City also saw notable growth, increasing revenue from USh1.6 billion to USh4.4 billion.
Other cities reported gains as follows:
- Lira City: USh2.1 billion to USh3.9 billion
- Masaka City: USh2.4 billion to USh3 billion
- Mbale City: USh1.5 billion to USh2.5 billion
- Fort Portal City: USh2.3 billion to USh2.5 billion
- Hoima City: USh1.3 billion to USh1.9 billion
- Soroti City: USh1.3 billion to USh1.7 billion
Magyezi attributed the growth to enhanced government financing, which enabled cities to invest in beautification, garbage collection, vehicle purchases, and administration improvements.
The cities now operate with approved human resource structures tailored to meet strategic objectives. Magyezi noted that all cities have established service commissions and recruited skilled staff. Each city received an additional Shs2 billion in wages, which helped attract technical personnel critical to development initiatives.
“Cities now have the capacity to function as administrative and economic hubs,” Magyezi explained. “This transformation is the result of deliberate efforts to address staffing gaps and strengthen urban management.”
The Parliament of Uganda approved the elevation of 15 municipalities to city status on April 28, 2020. Of these, ten cities have been operationalised, while the remaining five—Entebbe, Nakasongola, Moroto, Kabale, and Wakiso—await elevation.
Magyezi emphasised that the new cities are delivering tangible results. He encouraged critics to visit and witness the ongoing developments, especially in preparation for the Cities Expo and Symposium scheduled for March 15–18 in Mbarara City.
Lands Minister Judith Nabakooba, represented by the Commissioner of Urban Planning, Joseph Walter Pader, stressed the need for effective urban planning to manage the country’s rapid urbanisation, which is growing at a rate of 5.2 per cent annually.
Ahmed Kaweesi, Chairperson of the Cities Consortium, noted that the symposium would provide a platform for leaders to discuss strategies for sustainable urban development.
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