Kampala Rebuilding: Transforming a Capital City into an Urban Powerhouse

May 27, 2025

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How Infrastructure, Revenue Innovation, and Inclusive Growth Are Reinventing Uganda’s Capital

As Uganda advances toward the ambitious goals of Vision 2040, Kampala is emerging as a prototype for urban transformation in Africa. Once constrained by aging infrastructure and low fiscal capacity, the capital is now being reborn—driven by targeted public investment, digital innovation, and a focus on inclusive growth. Leading this transformation is the Kampala Capital City Authority (KCCA), with a bold agenda to modernize infrastructure, elevate service delivery, and unlock sustainable urban productivity.

Rebuilding the Capital: Kampala’s Infrastructure Revolution

Kampala’s 2,104-kilometer road network is undergoing the most extensive upgrade in its history. In 2010, only 30% of the network was paved—and much of it had deteriorated. By May 2025, that number has risen to 37%, with 779 kilometers now paved. These upgrades are making the city’s transport system more resilient, accessible, and supportive of commerce.

Key Ongoing Infrastructure Projects:

Although mass transit systems such as Bus Rapid Transit (BRT) and Light Rail are not yet in place, the groundwork is being laid. Over 20% of Kampala’s population derives its livelihood from the transport sector—demonstrating the sector’s centrality to economic inclusion and growth.

What Lies Ahead (2025/26–2029/30):

  • Upgrade of an additional 130 kilometers of roads
  • Completion of 35+ intelligent traffic junctions
  • Full-scale deployment of the Kampala Traffic Control Centre
  • Introduction of BRT and Light Rail systems—currently under feasibility and funding development

Kampala is no longer catching up—it is shaping the urban modernization narrative across East Africa.

Fiscal Transformation: How Kampala Is Financing Its Own Future

Urban transformation requires financial independence. Over the last 15 years, KCCA has achieved a 180% increase in local revenue—from UGX 30 billion in 2010 to UGX 115 billion in 2025. This remarkable growth is anchored in digital governance, strong institutional reforms, and a strategic shift away from cash-based transactions.

Key Innovations Driving Revenue Growth:

  • e-Citie Portal (FY 2024/25): A fully digital platform for assessments and payments, replacing all cash transactions
  • Computer-Aided Mass Valuation: Updated property rolls for better compliance and fairer taxation
  • Civic Education Campaigns: Awareness initiatives that foster a culture of tax responsibility
  • Inter-Agency Collaboration: Streamlined operations through partnerships with URA, URSB, and other GKMA bodies

Despite these gains, Kampala still has untapped potential. With the city contributing over 65% of Uganda’s GDP, analysts project its local revenue could reach UGX 250 billion annually—more than double current levels.

Forecasting:

  • Expand revenue streams from 11 to 15, including industries like outdoor advertising
  • Integrate predictive analytics to improve collection forecasting
  • Engage in public-private partnerships (PPPs) for cost-sharing in service delivery

As one KCCA strategist noted, “Revenue is not just a fiscal tool—it’s Kampala’s passport to sustainable autonomy and better services.”

The Kampala Model: Inclusive, Sustainable, and Future-Ready

Kampala’s progress isn’t just measured in kilometers of roads or shillings collected. It’s seen in the lives of its people. KCCA’s community-centered initiatives—ranging from market modernization and youth skill-building centers to climate resilience programs—are ensuring the city’s growth is equitable and inclusive.

Programs are specifically designed to reach underserved communities, integrate youth and gender considerations, and promote sustainable urban livelihoods.

A Rising Urban Beacon for Africa?

Kampala is rewriting the playbook for urban transformation. Its journey—from degraded infrastructure and fragmented governance to a digitally enabled, strategically funded, and people-focused metropolis under reconstruction in line with Uganda Vision 2040.

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