Kitgum Municipal Council has registered a 25 percent decline in local revenue collection following the rollout of the Integrated Revenue Administration System (IRAS), Mayor Richard Ojara Okwera has said.
Okwera attributed the drop to challenges encountered during the transition from the previous manual revenue collection system to the digital platform, which was introduced by government to improve transparency and accountability in local revenue management.
He alleged that some revenue collectors bypass the IRAS system by collecting cash directly from taxpayers and misappropriating the money. Many taxpayers, particularly small business operators and market vendors, are also struggling to adapt to the electronic payment system, resulting in reduced compliance and delays in remitting dues
Grace Adong, a general merchandise trader in Kitgum, said both revenue collectors and taxpayers were not adequately trained before the system was operationalised, creating confusion that affected revenue collection.Adong said delays in payment reconciliation and difficulties in accessing payment platforms have further discouraged taxpayers from paying on time.
“The system may be good for transparency, but small traders were not well trained and sensitised on how to use it. Some people fear making mistakes, while others do not even understand the codes and procedures required,” Adong said.
Kitgum Municipality has traditionally relied on local revenue sources such as market dues, trading licences, property rates and parking fees to finance essential services, including garbage collection, road maintenance and street lighting. However, since the introduction of IRAS, revenue collections have significantly declined, affecting the council’s ability to implement some planned activities.
A council report for the 2025/2026 financial year shows that the municipality projected to collect 1.128 billion Shillings in local revenue. By the end of the third quarter, only 663 million Shillings had been collected, leaving a shortfall of 464 million Shillings.
Reagan Nokrach, the former Speaker of Kitgum Municipality, urged municipal authorities to strengthen partnerships with stakeholders to improve tax compliance and boost revenue collection.
“If sometimes it is hard for us to collect, let’s partner with other teams so that we see our revenue is boosted and collected well,” Nokrach said.Nokrach also raised concern over traders operating outside gazetted business areas, especially around the main market, saying the practice is undermining revenue collection. He called for stricter enforcement of trade order regulations to compel traders to return to designated markets and trading spaces.“We need to develop a strategy whereby we collect all these traders back to the market so that we collect good revenue,” he said.
He further proposed stricter enforcement of the IRAS electronic payment system to reduce cash transactions and improve accountability. Nokrach suggested that traders who continue making cash payments should face penalties, including paying twice the required fees. He also challenged the municipality to identify and establish new revenue sources instead of relying on traditional ones.IRAS was introduced to close loopholes and curb corruption in local revenue collection.
However, its implementation has faced several challenges, including poor internet connectivity, low digital literacy and inadequate taxpayer sensitisation.In a recent report, the Auditor General noted that limited ICT capacity and insufficient training were undermining the effective operation of the system. Many staff reportedly lacked the skills to handle key functions such as assessment, receipting, reconciliation and report generation.
The report further revealed that 18 local governments experienced unstable internet connections, frequent system failures and delayed technical support, while 22 local governments lacked adequate point-of-sale machines and other ICT equipment. The shortage of devices reportedly caused congestion at collection points, delayed payment processing and, in some cases, forced reliance on manual receipting, exposing the system to possible revenue leakages and weak accountability mechanisms.
The Auditor General also cited resistance from taxpayers, particularly in rural communities, due to illiteracy and limited understanding of electronic payment systems. As a result, local governments collected only 79 percent of the targeted 248 billion Shillings in the 2024/2025 financial year. URN