KFC Uganda Raid Raises Questions Over URA’s Tax Procedures
The KFC Uganda raid has triggered heated debate within Kampala’s business community after Uganda Revenue Authority (URA) officers stormed the fast-food operator’s Kololo office on November 19, seeking information linked to alleged tax discrepancies between 2019 and 2022. Kuku Foods Uganda, the franchise owner of KFC outlets across the country, sharply criticised the operation, calling it excessive, disruptive and inconsistent with lawful tax administration standards.
Company Accuses URA of Heavy-Handed Tactics
According to Kuku Foods, the Investigations Department entered the premises with armed personnel, alarming employees and creating an atmosphere the company described as similar to a security operation rather than a routine tax inquiry. Staff were reportedly kept under close watch late into the night as URA personnel searched offices and accessed electronic devices.
In a strongly worded letter to Commissioner General John Musinguzi, the company questioned why URA bypassed procedures under the Tax Procedures Code, particularly the absence of a prior information notice. Kuku Foods insisted that any required records could have been provided promptly if requested officially, without the need for an unannounced armed raid.
URA Defends Surprise Visit as Necessary
URA insiders defended the KFC Uganda raid, saying investigators needed to act discreetly to prevent possible evidence tampering in what they described as a “high-stakes tax probe involving billions.” They argued that prior notification could have compromised the integrity of the investigation.
However, Kuku Foods accused URA of violating data privacy rules by extracting information without demonstrating compliance with the Data Protection and Privacy Act or explaining how the collected data would be secured.
Dispute Extends to Previous Audits and Court Battles
The company also challenged URA’s move to reopen audited tax periods from 2019 to 2022, noting that the same period had been conclusively audited and settled in March 2023. They argued that reopening a closed audit requires clear evidence of fraud or intentional misrepresentation—none of which was cited.
This tax confrontation follows an earlier ruling by the Tax Appeals Tribunal (TAT) in April 2025, which declined Kuku Foods’ request to block URA from adjusting its reported tax losses. The underlying dispute stems from a URA audit that reduced the company’s declared tax losses from Shs 16.8 billion to Shs 8.3 billion.
Kuku Foods Highlights Its Economic Contribution
Despite the controversy, Kuku Foods noted that it has been a major taxpayer and investor. Between January and October 2025, the firm remitted over Shs 24.7 billion in direct and indirect taxes and spent more than Shs 43 billion procuring goods and services from local suppliers. The company has also invested over Shs 18 billion in new and upgraded outlets as part of its expansion drive.
As investigations continue, the KFC Uganda raid has renewed debate about URA’s enforcement methods, business confidence, and the delicate balance between tax compliance and investor protection.