UGANDA: THE NEW SALARY INCREMENT BUSINESS COMMUNITY WORRY WILL SCARE POTENTIAL INVESTORS SUPPORT ECONOMY AS THEY WILL PAY SWOOPING TAXES.

President Museveni’s new salary increments 30 percent, for that is a political move actually worries me, businessmen because coming from the private sector, we have to pay taxes in heavy way, River Poultry Gulu City Business owner scope.

GULU CITY-THURSDAY, 02/10/2025

(By Okumu Livingstone Langol, Our Correspondent). https://www.parliament.go.ug/news/4191/local-govt-leaders-pay-rise-kicks-next-financial-year

Richard Obuku, business Development expert:

Richard Obuku, business Development experts scoped at President Museveni salary increments’ 30 percent rise he announced yesterday, October 1, 2025, our economy does not favor industrial growth because taxes are too high, regulation is too striking. Which takes away potential investors that support Uganda economy.

Our Correspondent caught up with Richard Obuku, Business Development Expert in Gulu City, one on one interview and asked what his take on the new president Museveni salary increments would be?

Mr. Richard Obuku, response, is a good move, but we deal with the Economy, which is very demanding, because with inflation that keeps rising is not appealing. And the other things are creating critically we are dealing with inflation of salary, but no new job.

We have new Universities graduates across the regions that are sending over 300,000 new graduates, and I told you that only 9,000 new jobs are being created every year, that is really my take.

The salary only saves those whose salary is increased, it does not address Jua-kali and the business community. “The biggest challenges people always face from the country are new jobs, the only jobs are the boda boda which is not helping young people.

Our Correspondent put before Richard Obuku, Business Developer Expert if the new salary increments will help, Immigrants, Human trafficking for jobs seeking in the Middle East, and alleviate abject poverty in Uganda?

Richard Obuku, Business Developer Expert, response is critical, the incremented salary has no bearing on immigration, because those Immigrants are supported by NGOs, CSOs and UNHCR. They come with their money which is not important for a salary rise.

Trafficking is majorly driven by lack jobs opportunity in the country because people are desperately looking for jobs, the issues of factories is on one hand, if businesses are fairly function, and over 300,000 new graduates early being poured out the issues of job, if business thrives there will be job opponents for youths.

However, a Uganda Bureau of Statistics relist two years ago indicated that 80 percent of youths are not in their right jobs or they are without employment. Without that happening poverty can never be solved.

“Our environment does not favor industrial growth, taxes are too high, regulation is too striking which takes away potential investors that support the economy. UBOS did their research, the finding is that 80 percent of Uganda Businesses 80 percent does not pass their birthday.” Richard Obuku alluded.

In conclusion, a Business Developer expert described the new salary raise by 30 percent as political moves targeting the Presidential election scheduled Feb 13, 2026, and actually worrying him, because coming from the private sector he knows that we have to pay heavy taxes.

Fred Odoki, an Economist expert:

Fred Odoki, an Economist based in Gulu City dismisses the new salary increment says in economics when money is too much in the hand of people without increase in production lead to demand high inflation, it means there is too much money chasing up very limiting goods driving up prices of commodities.

“It means there is too much money chasing up goods driving up prices of commodities.”

Second school of thought is what we call the theory of Labor and works, they say when you give workers too much money, they reduce their time of work and they resort to leisure, abnormal increase of salary does not mean people will get to work.

Economist reason that in Uganda what happens there many gray areas of priority the money should be put in, Ministry of Agriculture in underfunded, Ministry Health is underfunded, Ministry of Education and Sport is underfunded, Ministry of Work, transport and Telecommunication and Ministry of ITC are underfunded.

So, it makes their move by the government more in favor of politics than in favor of the economy since Uganda is going to election in 2026.

Reference:
https://www.google.com/search?q=ministry+of+finance-+NEW+SALARY+INCREMENT+30%2F09%2F2025&oq=ministry+of+finance-+NEW+SALARY+INCREMENT+30%2F09%2F2025&gs_lcrp=EgZjaHJvbWUyBggAEEUYOTIHCAEQIRigAdIBCTM5MzY2ajBqN6gCALACAA&sourceid=chrome&ie=UTF-8