By Ben Ssebuguzi
When President Yoweri Museveni and President Ruto presided over the groundbreaking of the Devki Mega Steel Plant in Tororo, it was a feeling of pure joy between both leaders and the East Africans, hence cementing our shared values.
When an investor injects capital into an economy, it increases income for those who receive it. This means that the USD 500m capital investment for the steel plant investor will end up creating wealth for suppliers and employees, who are estimated to create about 1,600 jobs.
That is why President Museveni’s prosperity message is always candid: wealth is created in commercial agriculture, industry, services (like hotels and transport), and ICT.
The multiplier effect in economics manifests more when the recipients of the new income spend a portion of it on goods and services, hence creating more income for others in the economy, including government, in terms of national income.
Another archetypal example is the coming of the KFC food chain into the fast-food market. KFC, which operates multiple outlets in Kampala and forms part of Kuku Foods East Africa Holdings—which also manages KFC branches in Rwanda and Tanzania—has recently expanded, opening new outlets in Bulenga, Gayaza, and Kireka.
In the 10 months to October 2025, KFC is said to have remitted more than Shs 24.7 billion in direct and indirect taxes.
Although some big companies have a tendency to under-declare taxes through reporting less income, which affects our national budget priorities, their submission of taxes such as PAYE, income tax, withholding tax, VAT, and import duties is highly commendable because it helps government build a better and more conducive business environment for everyone.
It is reported that KFC spent over Shs 43 billion on goods and services from suppliers. They went ahead to invest Shs 18.3 billion in capital expenditure for new refurbished outlets. Every new outlet means more income for Ugandans.
The NRM manifesto prioritizes attracting investors such as KFC and the Devki Mega Steel Company of Dr. Narendra Raval because they align with government’s commitment to growing the economy to USD 500 billion through value addition.
KFC empowers poultry farmers in the country who supply chicken as an input, hence supporting those who borrowed government financial tools such as the Parish Development Model and Emyooga.
At the same time, the steel company facilitates government policy which prohibits the export of raw ore. The amalgamation of different economic activities by investors creates a multiplier effect, which leads to more job creation and the modernization of our economy.
In conclusion, every investor in your community deserves a standing ovation due to their impact on the economic transformation of Uganda.
Let’s promote peace in order to protect our gains.
The writer is the Head of Research, Office of the National Chairman of NRM.
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