KCCA Eyes Utility Disconnections for Unpaid Property Taxes

The Kampala Capital City Authority (KCCA) is considering a new strategy to tackle the ballooning billions in unpaid property taxes: partnering with utility companies to disconnect services to defaulters.

Robert Nowere, KCCA’s Director of Revenue Collection, revealed the proposal to Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (Cosase). The plan involves collaborating with entities such as the National Water and Sewerage Corporation (NWSC) to link property tax payments to essential services.

“What we were intending to do was to seek partnership with those utility companies like NWSC so that when they come to a place, and you have property tax outstanding arrears, they disconnect you,” Mr. Nowere explained. He cited international examples, including South Africa, where such integrated payment systems are reportedly in use.

The Auditor General’s report for the financial year ending June 2025 indicated a rise in KCCA’s revenue arrears, from Shs281.13 billion to Shs328.16 billion, highlighting the urgency of improving collection methods.

However, the proposal has met with skepticism from some legislators. Kira Municipality MP George Musisi questioned the feasibility, noting that NWSC itself faces challenges with debt collection. “Members of Cosase know that NWSC is also grappling with debt collection. I don’t know how you can go to a person who is also struggling to help you with the same disease,” Musisi remarked.

Despite the legislative concerns, KCCA views this partnership as a potential avenue to enhance revenue and address the mounting tax debt. Meanwhile, NWSC has stated that it is unaware of any such proposal, with its public relations director emphasizing the corporation’s primary mandate of providing water and sewerage services.

Source: https://www.monitor.co.ug/uganda/news/national/kcca-proposes-water-power-cuts-for-tax-defaulters-5581984