Rwanda's Districts Triple Revenue Collections Over Decade

Strategic Insights -

The Rwanda Revenue Authority (RRA) and the Rwanda Association of Local Government Authorities (RALGA) have reported a significant increase in district-owned revenue collections over the past decade. The districts have nearly tripled their own revenue collections, collecting Rwf40.5 billion in the 2015/16 fiscal year and Rwf105.9 billion in 2024/25. The revenue target for the 2025/26 fiscal year has been set at Rwf121.9 billion. This growth is attributed to the districts' efforts to mobilize and manage their own resources independently, including rental income tax, immovable property tax, and trading license tax.

Key Takeaways:

  • Over the past decade, Rwanda's 30 districts have nearly tripled their own revenue collections, from Rwf40.5 billion in the 2015/16 fiscal year to Rwf105.9 billion in 2024/25.
  • The revenue target for the 2025/26 fiscal year has been set at Rwf121.9 billion, a 20% increase from the previous year.
  • The increase is attributed to the districts' efforts to mobilize and manage their own resources independently, including rental income tax, immovable property tax, and trading license tax.
  • RRA collects revenues on behalf of local governments, working closely with them to identify local tax potential and develop tailored collection strategies.
  • There is still untapped potential in property tax and rental income tax, with RRA aiming to address these areas through real-time data integration and registration of liable property owners.
  • The districts' own revenue collections currently account for less than 20% of their budget in some instances, highlighting the need for continued central government support.

Statistics:

  • Rwf40.5 billion: Districts' own revenue collections in the 2015/16 fiscal year
  • Rwf105.9 billion: Districts' own revenue collections in 2024/25
  • Rwf121.9 billion: Revenue target for the 2025/26 fiscal year
  • 20%: Increase in revenue target for the 2025/26 fiscal year compared to the previous year

Sources:

  • The New Times, "Districts urged to generate more revenues", July 23, 2025
  • The New Times, "RRA unveils plan to meet set Rwf3.6 trillion target"