MBARARA CITY PROPERTY TAX WAR! ‘WE SHALL FIGHT’ — Jomo, Speaker Turn Heat on Town Clerk Barekye Over Sh1.5Bn Cash Row
A photo montage of Jomo Mugabe and Justine Barekye, Mbarara City Town Clerk (R)
By Amos Tayebwa
A bitter fight over billions of shillings collected from property tax has erupted in Mbarara City, with Mbarara City South Division Mayor-elect Jomo Mugabi threatening to mobilize residents to stop paying taxes unless the City Council releases what he describes as the division’s rightful share.
The dispute has pitted Jomo and Division Speaker Godfrey Tusiime against Mbarara City Town Clerk Justine Barekye and city leadership led by Mayor Robert Mugabe Kakyebezi, throwing the management of property tax collections into fresh controversy.
Jomo claims that Mbarara City South Division generated about Shs1.5 billion in property tax during the 2025/2026 financial year but has only received Shs220 million, leaving the division struggling to deliver services.
According to the mayor-elect, residents who faithfully pay taxes are not seeing tangible benefits in roads, drainage and other public services despite contributing huge amounts of money.
“What we want is our money. If the issue of property tax is not solved, we shall fight. This money belongs to the people and should be used to improve services in our division, not be misused at the city centre,” Jomo warned.
He accused city authorities of frustrating division operations and threatened to petition the Inspector General of Government (IGG), auditors and area MP Mwine Mpaka to investigate the management of property tax funds.
Jomo further warned that if the standoff continues, leaders could mobilize residents to boycott payment of property tax altogether.
“We are not fighting for personal gain. We are fighting for the taxpayers. My division contributes the biggest share of property tax but receives peanuts in return while roads remain in a terrible state,” he said.
The mayor-elect also accused Town Clerk Barekye and city leaders of undermining division governments despite their autonomy under the law.
However, Town Clerk Justine Barekye dismissed the accusations, insisting that property tax is legally managed by the city centre and is not subject to sharing among divisions.
She explained that property tax operates under the Local Governments Rating Act, 2005, which provides that the money must be used strictly for service delivery projects such as road maintenance, drainage works, garbage collection, street lighting, physical planning and urban development.
“This source is not shared. It is specifically meant for services and cannot even be used for council allowances. We have already started remitting funds and there is no reason for alarm,” Barekye said.
She revealed that Mbarara City expects to collect about Shs3.5 billion in property tax this financial year, although the entire amount has not yet been realized.
Barekye attributed delays in remittances from other local revenue sources to the recently concluded election period and assured division leaders that releases would continue as collections improve.
But City South Division Speaker Godfrey Tusiime backed Jomo’s demands and accused the city administration of ignoring provisions of the law.
“We shall not sleep until we get our money. The Town Clerk should stop misusing taxpayers’ money and follow the law. Enough is enough,” TusiIme vowed.
With both sides refusing to back down, the property tax dispute is now headed for a major showdown that could draw in auditors, the IGG and political leaders as residents wait to see who will win the battle over billions of shillings collected from their pockets.
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