URA raids KFC’s office in Kololo

Kuku Foods Uganda Ltd, the operator of KFC, lodged a formal protest against the Uganda Revenue Authority (URA) following a raid on its Kololo offices by armed officials on November 19, 2025.

The raid was part of an investigation into discrepancies in income declarations between 2019 and 2022.

In a letter addressed to URA’s Commissioner General, John Musinguzi, Kuku Foods condemned the operation as excessive and out of line with standard tax procedures.

The company described how the URA’s Investigations Department arrived with armed personnel, causing unnecessary panic among staff.

It also raised concerns about the lack of adherence to tax procedures, questioning whether URA had issued a formal notice before the raid.

URA officials, speaking anonymously, defended their actions, saying the raid was essential to gather critical information for a major investigation involving billions of shillings.

They argued that informing Kuku Foods ahead of time would have compromised the investigation.

However, Kuku Foods criticised URA for accessing its devices without following required data protection protocols, raising concerns about potential breaches under the Data Protection and Privacy Act.

Kuku Foods also took issue with URA’s decision to revisit taxes from 2019–2022, arguing that these periods had already been audited and settled.

The company warned that reopening previously audited tax periods undermines business stability and creates uncertainty for future planning.

The raid follows an April 2025 ruling by the Tax Appeals Tribunal in which Kuku Foods unsuccessfully sought to block URA’s adjustment of its tax losses.

This ongoing tax dispute stems from an audit that reduced the company’s declared tax losses from Shs16.8 billion to Shs8.3 billion due to undeclared income and disallowed expenses.

Despite the dispute, Kuku Foods emphasised its significant contributions to Uganda's economy, revealing that it had remitted over Shs24.7 billion in taxes over the past ten months, alongside substantial investments in local suppliers and infrastructure.