The Uganda Revenue Authority (URA) has defended its November 19, 2025 raid on the Kampala offices of Kuku Foods Uganda Ltd, the operator of KFC, saying the operation was necessary to obtain critical information for an ongoing tax investigation covering the period 2019 to 2022.
The tax body’s position follows a strong protest letter by Kuku Foods to URA Commissioner General John Musinguzi, in which the company described the raid as “exceptional in character, disproportionate in execution and wholly inconsistent with the standards expected in the lawful administration of tax matters.”
According to the company, URA’s Investigations Department stormed its Kololo offices with armed personnel, causing panic among staff and creating an atmosphere “entirely incompatible with the cooperative and transparent relationship we have consistently sought to maintain.”
Kuku Foods said staff were held under supervision until 1:00am and claimed the manner in which officers moved through the premises “bore no resemblance to a routine tax inquiry. It mirrored a security raid.”
The company further accused URA of bypassing mandatory procedures under the Tax Procedures Code. It argued that no information notice had been issued or ignored, and that any data required “could have been provided promptly and lawfully upon proper request.”
URA officials who preferred anonymity defended the surprise operation, saying it was meant to secure critical material before it could be altered or withheld. One source noted, “This is a major tax investigation involving billions of shillings, and we are not leaving anything to chance.”
Kuku Foods also claimed URA officers accessed electronic devices and extracted data without demonstrating adherence to standards required under the Data Protection and Privacy Act, nor explaining how the information would be safeguarded or how chain-of-custody would be maintained. The company said the alleged omissions expose it to potential breaches caused entirely by URA’s actions.
Kuku Foods further protested URA’s decision to reopen tax years between 2019 and 2022, stating that the entire period from March 2018 to February 2022 had already been conclusively audited. An Audit Management Letter was issued on March 21, 2023, and all assessments settled. It argued that reopening a concluded audit requires credible evidence of fraud, willful neglect or material misrepresentation—none of which were presented.
The tension between both parties follows an earlier Tax Appeals Tribunal (TAT) ruling in April 2025, in which the tribunal declined to grant Kuku Foods an injunction stopping URA from adjusting its tax losses. The company was, however, exempted from paying 30% of the disputed tax because a final assessment had not yet been issued.
The dispute stems from a URA audit covering March 2018 to February 2022, which reduced Kuku Foods’ declared tax losses from Shs 16.8 billion to Shs 8.3 billion, citing undeclared income and disallowed expenses. The company challenged the findings under TAT Application No. 287 of 2024.
Kuku Foods Uganda, the exclusive franchise holder for the KFC brand, operates multiple outlets in Kampala and forms part of Kuku Foods East Africa Holdings, which also manages KFC branches in Kenya, Rwanda and Tanzania. The company has recently expanded, opening new outlets in Bulenga, Gayaza Road and Kireka.
In the ten months to October 2025, Kuku Foods said it remitted more than Shs 24.7 billion in direct and indirect taxes, including PAYE, income tax, withholding tax, VAT and import duties. It added that it spent over Shs 43 billion on goods and services from Ugandan suppliers and invested Shs 18.3 billion in capital expenditure for new and refurbished outlets.
