By our reporter

Uganda Revenue Authority (URA) has closed offices of Buganda Kingdom owned telecom company K2 over tax default.

According to URA Corporate and Communication Affairs Manager Ian Rumanyika, K2 whose major shareholders include former Finance Minister Maria Kiwanuka and Buganda Land Board boss, Kiwalabye Male owes shs77.8 million in Pay as You Earn (PAYE) and shs17 million in local exercise duty which amounts to shs95.8 million.

He says the telecom company failed to meet the terms of the Memorandum of Understanding that it had with URA since 2013.

K2 telecom was launched by Kabaka Ronald Mutebi in December 2013.

However since its launch, the company has been struggling, with less than 100,000 active customers.