Uganda: Border Closure Affects Revenue Collection in Katuna Town Council

Kampala, Uganda — The closure of the Rwandan border has affected revenue collection by Katuna town council.

Rwanda closed its border with Uganda at Katuna in Kabale district and Chanika in Kisoro district to expedite the construction of the single customs post at Gatuna border. Rwanda advised truck drivers destined to Kigali to use Kagitumba border via Mirama Hills.

However, Rwandan officials including President, Paul Kagame later accused Ugandan authorities of abducting its citizens and locking them up in ungazetted areas.

On Sunday night the Rwanda Revenue authority announced a partial opening for cargo trucks from June 10-22, 2019. However, the travel warning to Rwandan citizens against crossing to Uganda still stands.

The tension crippled business at Katuna border as well as revenue collection for the town council. The reduction in revenue collection has also led the town council fail to implement some of its programs.

Eric Sunday, the Town Clerk for Katuna town council says that before the border closure, they would collect about 300 million shillings revenue in three months through, loading and offloading, parking and daily market.

Sunday says that as a result of revenue collection decline, they have failed to implement most of the programs which include garbage and plastic waste collection as well as water treatment.

Sunday says that even up to date most of the shops are still closed due to lack of customers whom he says that they are mostly Rwandan nationals.

Nelson Nsangabasheija, LC3 chairman for Katuna town council says that the decline in revenue collection was worsened by the shifting of wholesale traders to Kampala, Busia and South Sudan due to lack of customers.

Nshangabasheija says that hopes of having a booming business at the border are still low since Rwandan nationals are yet to be allowed to cross to Uganda.

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