Employees of Kampala Capital City Authority-KCCA may miss their pay should they fail to collect their projected revenues, Red Pepper Online edition has learnt. Government has written to KCCA urging it to meet the salaries of its employees from local revenue collections. During the establishment of KCCA, government undertook to fund the authority for at least three years but it has now reneged in the promise.
Peter Kauju, the KCCA spokesperson has confirmed the budget cuts saying they are putting place measures to increase revenue collection. He explains that when KCCA started in March 2011, they were collecting 30billion shillings, which increased to 55billion shillings by December 13, 2013. KCCA’s current budget is 182billion shillings, out of which government funding amounts to 120 billion.
Kauju explaines that the authority has updated its tax payer’s data base and is in the process of procuring a revenue management system. He however, couldn’t confirm nor deny whether government had pulled out of funding KCCA to enable it to become self-sustaining. Kauju says that KCCA was preparing itself by optimizing collections to ensure by the time government pulls out of KCCA funding, the authority would have become self-sustaining.
The projected KCCA revenue collection for this financial year is 60 billion shillings. The money is collected from ground rent, property rates, trading licenses and market dues.