Queries as URA rents offices despite Shs140 billion tower

KAMPALA — The Uganda Revenue Authority (URA) has sparked a storm of public debate after moving four of its departments from the Sh140 billion URA Tower in Nakawa to rented office space in a building owned by city tycoon Sudhir Ruparelia.

The transfer, completed on Sunday, October 19, 2025, marks the tax agency’s return to renting in Kampala — barely six years after commissioning its 22-storey headquarters, which was meant to end expensive leases and save taxpayers billions annually.

URA says the additional space, at RR Pearl Towers, is needed to accommodate the Large Taxpayer Department, but critics question both the timing and cost of the move. The agency is expected to spend Sh18 billion per year on rent, reigniting concerns over fiscal prudence and transparency.

A Costly Déjà Vu

When the Nakawa Tower was commissioned in 2019, then-Commissioner General Doris Akol told Parliament that URA was bleeding funds on rent, travel, and communication between scattered offices. The new tower — with 280,000 square feet of usable space and parking for more than 1,000 cars — was meant to centralize services, boost productivity, and save Sh7.4 billion annually in rental expenses.

URA argued then that renting was unsustainable and that constant relocations had disrupted services and raised operating costs. “URA offices within Kampala had relocated more than three times in search of suitable premises, resulting in disruption of services and high relocation costs,” Akol said at the time.

Now, with four departments back in leased space, many are asking: Was the tower underutilized, or was the public misled?

Procurement Dispute Adds to the Fire

Adding to the controversy is the procurement process that led to URA’s choice of Sudhir’s building.

In April 2025, URA advertised for rental space in the central business area. Three companies — TWED Property Development, Speke Hotel (1996) Ltd, and Apple Properties — submitted bids. Speke Hotel (1996) Ltd, owned by Ruparelia, emerged as the best-evaluated bidder.

But TWED Property contested the award, arguing that Pearl Tower lacked the required 312 parking slots for staff and 100 for walk-in clients, noting that many were already leased to TotalEnergies. The dispute reached the Public Procurement and Disposal of Public Assets (PPDA) Appeals Tribunal, which in June 2025 ruled in TWED’s favor, setting aside URA’s contract award and ordering a re-evaluation.

Despite that ruling, URA went ahead with the relocation.

When asked about the move, URA’s Public and Corporate Affairs Manager Robert Kalumba said, “The process of acquiring the offices passed through all the necessary legal procedures.”

Public Outcry and Questions Unanswered

Critics say the return to renting undermines the very justification for constructing the Nakawa Tower. “URA argued that building the tower would end rent wastage. Now we’re back where we started — only more expensive,” said one Kampala-based financial analyst.

Others point out that most large taxpayers can now file returns online, questioning why URA needs more physical office space.

URA has not explained whether the Nakawa Tower’s 1,700-staff capacity has been fully utilized. Nor has it clarified why, after years of claiming rental offices were inefficient and costly, it is once again paying billions to a private landlord.

With memories of the Sh140 billion tower still fresh, the move has left many Ugandans asking a familiar question — who really benefits when public agencies go back to renting?