Abstract: This article addresses the role of Rwandan local government’s own revenues and current challenges that local governments face in raising revenue. The article highlights the existing regulatory and policy instruments of own revenue in Rwanda’s local government, as well as the reforms and changes that have taken place since the decentralisation of government started in 2001. Furthermore, it investigates the existing opportunity and potential for enhancing local finances in Rwanda. The article also investigates the decision to give the Rwanda Revenue Authority (RRA) the mandate to collect local governments’ revenue on behalf of the districts. Furthermore, the author investigates key achievements since the decision was made, as well as future arrangements for increasing own revenue within local government districts.