Districts and City of Kigali set 2026/27 local revenue collection target

Rubavu – A two-day meeting bringing together the districts and the City of Kigali, the Rwanda Revenue Authority (RRA), the Ministry of Finance and Economic Planning (MINECOFIN), and the Ministry of Local Government (MINALOC) was held in Rubavu District on 14 and 15 May 2026. The Districts and the City of Kigali committed to continuing to raise their local revenue collection target, from 133.4 billion Rwandan francs to be collected in the 2025/26 fiscal year, to 165.9 billion Rwandan francs, which represents an increase of 24.4%.

As part of efforts to support local governments in becoming more financially self-reliant, the Rwanda Association of Local Government Authorities (RALGA) organises this meeting twice during each fiscal year.

It brings together District Executive Secretaries, the City Manager of the City of Kigali, staff in charge of finance and planning, revenue collection officers from districts and the City of Kigali, and representatives from various institutions to jointly assess the progress of decentralised revenue collection and share information that helps improve the collection of taxes and fees devolved to local government entities.

The Rwanda Revenue Authority’s (RRA) report shows that, overall, from July 2025 to April 2026, the districts and the City of Kigali collected 120 billion Rwandan francs, equivalent to 98.3% of their set target of 122 billion for that period.

Furthermore, the report indicates that taxes and fees collected over the past 10 months increased by 28.8% compared to the same period in the previous fiscal year. On an annual basis, local government revenue is projected to grow by 24.1% compared to what was collected in 2024/25.

Revenues collected by districts and the City of Kigali primarily originate from property tax, trading licence tax (patent), rental income tax, transfer tax on sold immovable property, and other fees charged for services provided by decentralised administrative entities.

Increase in the 2026/27 local revenue target

During the discussions on setting local government tax and fee collection targets for the 2026/27 fiscal year, districts and the City of Kigali collectively committed to collecting a total of Frw 165.9 billion, representing an increase of 24.4% compared to the Frw 133.4 billion target for the 2025/26 fiscal year.

"The targets and resolutions that have been made today require significant effort from all of us in order to be achieved, as well as to ensure that the country’s broader targets are met. Let us strengthen efforts to reduce tax arrears, develop innovative approaches that help expand sources of local revenue, and further improve performance and collaboration among staff, as well as among institutions involved in the collection of local government taxes and fees.” Valens Uwineza, Secretary General of RALGA

Under the second National Strategy for Transformation (NST2), the Government of Rwanda committed to doubling local government revenue collection, from 107 billion francs collected in the 2024/25 fiscal year to 214 billion by 2029.

What are these revenues used for?

Taxes and fees collected by local governments in collaboration with the Rwanda Revenue Authority and other partners are transferred to districts and the City of Kigali for use in the day-to-day operations of local government institutions. They are also used for the construction, rehabilitation, and maintenance of various infrastructure projects, as well as for other programs and activities that cannot wait for funding from the national budget.

In particular, the City of Kigali uses these revenues to pay staff salaries, from employees working at the city offices to street cleaning personnel, as well as for the construction of roads, drainage systems, and other infrastructure.

How are the districts and the City of Kigali performing in public resource management?

The latest report of the auditor general shows that the districts and the City of Kigali have made commendable progress in public resource management.

“I commend you for the progress made in the efficient management of public resources. However, you should continue to put in more effort, as we aspire for you to achieve clean audit opinions across all pillars.” Ruterana Boniface, Director General of Governance and Decentralisation at the Ministry of Local Government (MINALOC).

During the 2024/25 fiscal year, at least three districts received clean audit opinions across the three assessed pillars, up from only one district in the 2023/24 fiscal year.

• Under the pillar related to financial reporting, 27 out of the 28 districts and the City of Kigali received clean audit opinions.
• Under the pillar related to the compliance with laws, 10 districts and the City of Kigali received clean audit opinions, while 18 received qualified opinions.
• Under the pillar related to value for money, 14 districts received clean audit opinions, while 13 received qualified opinions.

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