IGG orders KCCA to hand over Owino to traders

A section of St. Balukuddembe Market (Owino) in downtown Kampala.

In a letter written to KCCA legal officer Mike Okua, the IGG instructed that the market lease be given back to the traders under their association of St. Balikuddembe Market Stall, Space and Lock-up Shops Owners Association.

The August 9 letter was signed by David Makumbi on behalf of the IGG.

It states that the IGG investigated matters concerning the market and found that it had been leased to the traders’ association.

“On February 3, 2010 the defunct Kampala City Council, (KCC) wrote a letter to the traders awarding a sublease to them,” reads the letter.

The IGG noted that in March 2010, the traders paid a premium of sh3.8b and on March 28, they paid sh200m for ground rent.

The IGG said to avoid doubt on the question of whether a tenant-landlord relationship existed between KCCA and the traders’ association, the matter was referred to the office of the Solicitor General for a second opinion.

He said he Solicitor General accepted that there existed a lease offer made by KCC and subsequent payments made by the traders. He also clarified that by leasing the market to the traders, KCC had effectively vested control and management of the market to the association.

“We accordingly advise that KCCA respects the contractual obligation that it inherited from KCC with regard to the traders’ association,” the IGG said in the letter.

In April, KCCA took over management of the city’s major markets of St. Balikuddembe, commonly known as Owino, and Nakasero amidst protest from the traders.