The government is proposing to introduce a tax on boda boda operators through local governments as part of efforts to enhance revenue collection and generate funds for maintaining public infrastructure.
The proposal was disclosed by the Chairperson of the Local Government Finance Commission, Isaac Musumba, during a briefing at the Uganda Media Centre.
Musumba said Uganda is estimated to have more than one million boda bodas operating across different local government jurisdictions, contributing to wear and tear on public infrastructure and increasing the need for maintenance.
He argued that the operators should contribute towards maintaining the infrastructure they use through a form of local revenue collection.
The proposal is expected to be presented at the upcoming Uganda Local Government Own Source Revenue Conference scheduled for the 15th of this month, where local government leaders will discuss the idea and provide their views.
Musumba said local government leaders would determine the proposed tax rate and whether payments should be made daily or monthly. However, he emphasized the need to consult boda boda associations before the proposal is adopted.
He added that the commission is also exploring ways of expanding local revenue sources by targeting commercial agricultural activities, including sugarcane growing and livestock rearing, among other enterprises.
According to Musumba, the proposals will be consolidated into amendments to existing laws that the government intends to submit to Parliament for consideration.
He noted that gaps in the current legal framework have limited the ability of local governments to collect certain fees and generate sufficient revenue to support service delivery.
Musumba further disclosed that all payments arising from the proposed revenue measures would be processed through the Integrated Revenue Administration System.
He said the conference would help shape the local revenue mobilization agenda for the 2026/2027 financial year, with the aim of strengthening the financial capacity of local governments to deliver services and maintain public infrastructure.
By Our Reporter
12th Oct 2026
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