KING OYO: THE SECRET ILLNESS, THE HIDDEN PRINCE AND THE FINAL DAYS OF TOORO’S BOY KING
Shift Media News 
KAMPALA, Uganda April 9 [SHIFTMEDIA] On a dusty roadside in Mukono, 27-year-old Sarah Namusoke balances her small fruit stall with a second, less visible business: mobile money. Her phone—cracked at the corner but carefully wrapped in a plastic cover—buzzes every few minutes. Customers pay for bananas, airtime, even school fees transfers through her. Yet despite her constant interaction with digital finance, Sarah has never owned a smartphone.
“I’ve thought about it,” she says, glancing at a poster advertising cheap Android devices. “But this one works. And data is expensive.”
Sarah’s story reflects a broader national paradox. Uganda has made remarkable strides in digital infrastructure and financial inclusion over the past decade. According to figures from the Uganda Communications Commission (UCC), nearly 96% of the country is covered by 3G and 4G networks. Mobile money has transformed commerce, with tens of millions of registered accounts and a large share of the adult population actively transacting. And yet, as of early 2026, only about 33% to 35.6% of Ugandans—roughly 18.2 million people—own smartphones.
The majority, like Sarah, still rely on basic feature phones.
A Network Without Devices
As Uganda considers raising import duty and VAT on entry-level smartphones, concern is growing among activists and small business owners who say the move could slow the country’s digital momentum.
Speaking in Kampala, Julius Makunda, the Executive Director CSBAG described smartphones as more than communication tools. “They are kiosks and offices,” he said, noting that many young Ugandans rely on them to market goods via social media and run daily businesses. Increasing their cost, he warned, risks pushing many out of income-generating opportunities.
Uganda’s FY 2026/27 tax proposals aim to boost domestic revenue, but critics argue they could deepen inequality. John Walugembe pointed out that smartphone access among informal traders remains extremely low, limiting their ability to compete in an increasingly digital economy.
At the grassroots, the pressure is already being felt. Mobile money agent Jenipher Tumwebaze says rising transaction taxes are cutting into both customer usage and agent earnings. “People are already stepping back,” she said.
With smartphone penetration still around 33%, stakeholders warn that higher taxes on devices and mobile money could stall financial inclusion, unless policies are adjusted to make digital tools more affordable and accessible.
The infrastructure gap is no longer the main barrier. Telecom companies have expanded aggressively, driven by competition and government policy aimed at boosting connectivity. Rural base stations dot landscapes that were once digitally isolated. In theory, Uganda is ready for a smartphone revolution.
In practice, affordability remains the biggest obstacle.
A basic smartphone can cost between UGX 150,000 and 400,000, a significant sum in a country where many survive on daily incomes. Even when devices are within reach, the ongoing cost of data bundles deters adoption. For low-income households, spending on internet access often competes directly with essentials like food, rent, and school fees.
The result is a layered digital divide: coverage exists, but meaningful access does not.
“Connectivity is not just about signal,” says Julius Makunda, Executive Director of the Civil Society Budget Advocacy Group (CSBAG). “It is about affordability and fairness in taxation. When you impose costs on digital services, you risk locking out the very people who stand to benefit the most.”
Makunda argues that while government efforts to expand the tax base are understandable, policymakers must strike a balance between revenue collection and inclusion. “If digital services become too expensive, people retreat to informal systems. That ultimately undermines both economic growth and tax compliance,” he adds.
Mobile Money: A Digital Success Story
If smartphones have struggled to penetrate, mobile money tells a different story. Uganda is widely regarded as one of Africa’s mobile money success cases. With active users numbering in the tens of millions, the service has become a backbone of everyday economic life.
From urban supermarkets to rural markets, mobile money enables transactions that were once cumbersome or impossible. It has increased financial inclusion, especially among populations historically excluded from formal banking systems. For small businesses, it reduces the need to handle cash, lowering risks of theft and simplifying record-keeping.
For business leaders, the impact is clear.
“Mobile money has fundamentally changed how enterprises operate, especially SMEs,” says John Walugembe. “It improves efficiency, reduces transaction costs, and expands market reach. But these gains can be eroded if transaction charges and taxes become excessive.”
Walugembe notes that small businesses are particularly sensitive to incremental costs. “A small trader making multiple transactions a day feels every additional charge. Over time, it affects pricing, competitiveness, and ultimately profitability.”
For the government, mobile money has also become a valuable revenue stream.
In recent years, Uganda introduced and adjusted taxes on mobile money transactions, including levies on withdrawals. While the policy aimed to broaden the tax base and boost domestic revenue, it has sparked debate about unintended consequences.
Critics argue that such taxes disproportionately affect low-income users, who rely heavily on small, frequent transactions. Some evidence suggests that higher transaction costs can discourage usage or push people back toward cash-based systems, undermining financial inclusion gains.
Taxation at the Last Mile
At the frontline of this ecosystem are mobile money agents like Jenipher Tumwebaze, who operates a small kiosk on the outskirts of Kampala. Her business depends on volume—dozens, sometimes hundreds, of small transactions daily.
“When charges go up, customers complain,” she says. “Some decide to withdraw less or send money less often. Others go back to cash.”
Tumwebaze explains that while mobile money remains essential, behavioral shifts are noticeable. “Before, people would send even small amounts without thinking. Now they calculate first. It slows business.”
For agents, the ripple effects are immediate. Lower transaction volumes mean reduced commissions, squeezing already thin margins. “We are part of the system, but we also feel the pressure,” she adds.
Taxation and the Cost of Going Digital
Beyond mobile money, internet usage itself has been shaped by taxation policies. Uganda’s controversial social media tax, introduced in 2018 and later revised into a broader data tax, highlighted tensions between revenue generation and digital access.
While the government defended the measures as necessary for fiscal sustainability, digital rights advocates warned that they risked excluding millions from online spaces. For many Ugandans, the added cost reinforced the perception that the internet is a luxury rather than a utility.
The impact is visible in usage patterns. Even among smartphone owners, data consumption tends to be conservative. Free or low-cost platforms—often accessed through promotional bundles—dominate, while broader internet engagement remains limited.
This has implications for the economy.
A digitally connected population can drive innovation, e-commerce, and job creation. But when access is uneven or restricted by cost, those opportunities remain concentrated among a smaller segment of society.
Bridging the Gap
Efforts are underway to address these challenges. Some telecom operators have introduced device financing schemes, allowing customers to pay for smartphones in installments. Others offer bundled packages that combine affordable data with entry-level devices.
Government initiatives, often in partnership with international organizations, aim to expand digital literacy and integrate ICT into education. There is growing recognition that infrastructure alone is not enough—that adoption requires a holistic approach.
