Uganda's Social Media Tax Sparks Mass Exodus, Economic Concerns

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Nyakundi Report

Newsroom 2 min read

Over 2.5 million Ugandans have abandoned social media platforms following a 200-shilling daily levy introduced in July 2019, with critics alleging the tax suppresses free speech and political dissent.

The tax, targeting 60 websites including Facebook, WhatsApp, and Twitter, was framed by President Yoweri Museveni as a measure against 'excessive gossip' but has drawn accusations of restricting public discourse. A 2016 election-era shutdown of social media platforms by Museveni's government further fuels concerns about escalating digital controls.

Legal advocate Irene Ikomu warned that the tax could lead to 'more restrictive measures' ahead of upcoming elections, citing increased public scrutiny of governance through online channels. 'The internet has become a primary source of political information,' she stated, noting citizens' heightened critical engagement with national issues.

Many users have circumvented the tax using virtual private networks (VPNs) to access blocked services, while social media campaigns like #ThisTaxMustGo highlight public resistance. However, the levy has already impacted Uganda's digital economy, with mobile money transaction values dropping 25% to 14.8 trillion shillings between June and September 2019.

Businesses reliant on mobile data subscriptions report financial strain, with vendors like Paul Cise citing staff reductions and declining sales. Florence Acen, a mobile money agent, described reduced commissions from impoverished customers forced to abandon services.

Uganda Communications Commission spokesperson Ibrahim Bbosa expressed confidence in eventual user adaptation, stating 'sooner or later, people will realize this is something they can live with.' However, the exodus of 1.2 million paying users since the tax's implementation underscores ongoing tensions between digital regulation and public access.

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