The study examined the impact of local revenue collection on service delivery in lower local governments within Nansana Municipality, Kampala. The research employed a cross-sectional survey design with mixed methods to collect data from 228 respondents comprising local council leaders, revenue collectors, community development officers, service delivery staff, and community members across the five divisions of Nansana Municipality. Primary data were gathered through structured questionnaires and in-depth interviews, while secondary data were obtained from revenue collection records, service delivery reports, and parish development committee minutes covering the period 2020-2023. The study utilized correlation and regression analysis to determine the strength and nature of relationships between local revenue collection dimensions (revenue base expansion, collection efficiency, enforcement mechanisms, and accountability systems) and service delivery outcomes (infrastructure development, social services provision, community mobilization, and public satisfaction). The findings revealed a significant positive relationship between local revenue collection and service delivery quality (r = 0.716, p < 0.01). Collection efficiency demonstrated the strongest correlation with service delivery (r = 0.734, p < 0.01), followed by revenue base expansion (r = 0.689, p < 0.01), accountability systems (r = 0.667, p < 0.01), and enforcement mechanisms (r = 0.642, p < 0.01). The regression model indicated that local revenue collection variables explained 51.3% of variance in service delivery outcomes (R² = 0.513, F = 58.47, p < 0.001). Lower local governments with higher revenue collection demonstrated 47% better infrastructure development, 39% improved social service provision, 43% enhanced community mobilization, and 52% higher public satisfaction compared to those with weak revenue performance. The study concluded that local revenue collection significantly impacted service delivery quality in lower local governments within Nansana Municipality. Enhanced revenue mobilization through expanded tax bases, efficient collection systems, effective enforcement, and transparent accountability mechanisms enabled better infrastructure