COSASE probing sh4b Mombasa rent arrears owed to govt
Speaking to New Vision via WhatsApp on Monday, August 3, 2026, committee chairperson Muwadda Nkunyingi (Kyadondo East, NUP) said the visit was intended to verify findings raised by Auditor General Edward Akol in his 2024/25 financial year report on the entity.
The Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) is in Mombasa, Kenya, on a fact-finding visit to properties managed by Uganda Property Holdings Limited (UPHL). (Credit: Nkunyingi Muwada/X)
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The Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) is in Mombasa, Kenya, on a fact-finding visit to properties managed by Uganda Property Holdings Limited (UPHL).
Established in November 1998, UPHL is supervised by the Ministry of Finance, Planning and Economic Development (MOFPED) and is responsible for managing Government properties both locally and abroad.
Speaking to New Vision via WhatsApp on Monday, August 3, 2026, committee chairperson Muwadda Nkunyingi (Kyadondo East, NUP) said the visit was intended to verify findings raised by Auditor General Edward Akol in his 2024/25 financial year report on the entity.
He said one of the committee's core priorities was to visit property in the area occupied by Unifreight Cargo Handling Limited, which, according to official reports, is a defaulting tenant.
“But Uganda Property Holdings was telling us that they were informed by the finance ministry that the President advised them to write off the bad debt in line with the advice of the Solicitor General of Uganda. What we understand is that the matter has taken some time until July. When they received a letter telling them that, as they had been advised by the finance ministry, the right approach is to have this sorted by Parliament, which has the powers to process and approve any such matter,” he explained.
He added that the committee's key focus is to conduct a cost-benefit analysis of why the debt should be written off and how it would impact the taxpayer.
AG recommendations
The entity had planned to collect sh10.5b but ended up collecting sh9b, which he said affected the implementation of planned activities.
“I advised Management to strictly enforce compliance with the tenancy agreements to ensure all tenants pay their rent dues on time. I further advised Management to engage with defaulters to develop payment plans to recover the unpaid rent,” he stated.
Additional revenue stream
Meanwhile, the Auditor General observed that four acres of land in Nyali, Mombasa, could generate additional revenue for UPHL if leased to larger clients.
According to the report, Plot 1776 (one acre) is rented by Maasai Bar and Restaurant, which pays monthly rent of Ksh154,000 (equivalent to sh4,551,317), while Plot 505/1/MN is rented by Faiz Gym at Ksh121,000 per month. The other two acres are occupied by Danrose (K) Ltd, which pays Ksh140,000 per month.