KCCA to lose 16 billion over slashed taxi levies

By Amos Ngwomoya:

While taxi operators celebrate the reduction on their monthly road user fees by President Museveni, Kampala Capital City Authority is set to lose at least Shs 16 billion this financial year.

The reduction in revenue comes at a time when the institution is still grappling with funding gaps caused by the low budget of Shs 338 billion that was allocated for this financial year which ends in June next year.

The monthly road user fees were reduced by president Museveni on Friday last week from Shs 120,000 to Shs 60,000 during a crisis meeting at State House, following uproar from taxi operators who protested the initial fees as ‘exorbitant’.

Although KCCA’s projection of revenue from taxi operators in this financial year was about Shs 25b, the figure will reduce to just Shs 12.5 billion.

Samuel Serunkuuma, the KCCA Acting executive director acknowledged the fact that the new levies will affect service delivery in the city.

Early this week, Peter Kaujju, the KCCA spokesperson told this newspaper that “government will have to find revenue sources to cover the gap”.