KCC loses sh420m in Owino market ownership saga

By Emmy Allio

Who is pocketing the rent of Owino market? Mystery surrounds the new arrangement of East-Africa’s largest market since the management contract of Victoria Limited was cancelled.

Vendors are still paying monthly taxes but the Kampala City Council (KCC) is not receiving the money. An estimated sh420m has disappeared in the last three months.

A financial management report by KCC’s Finance, Planning and Investment Committee of March 17 points out that no money from Owino market has been remitted for the months of January, February and March, despite the fact that the vendors are paying rent.

The report also notes that KCC has not received any money collected from Kampala’s boda boda cyclists, Parkyard Market next to Owino, and from toilets all over the city, estimated at sh30m monthly.

The report was compiled by Kawempe division councillor Daniel Ssali, who was mandated by the mayor, Nasser Ntege Sebaggala.

The councillors plan to question the mayor this week over the issue. They accuse the vendors’ leaders and Kampala politicians of pocketing the money.

“Neither KCC nor Victoria Limited has collected market dues since January. This has resulted in a loss of about 420m. The market is left to exist under a chaotic management of some vendors who collude with politicians to swindle the funds,” a KCC official said.

Makerere University Councillor Benard Luyiga and others want to sue the mayor and his executive for loss of funds. They want the Police to open criminal investigations against Sebaggala, the Kampala central division chairman Godfrey Nyakana, leaders of the Owino Vendors Association and one Kampala MP.

“Our preliminary investigations have revealed that money collected from Owino is shared by individuals. The mayor should resign,” a senior councillor said.

The town clerk last January cancelled the management contracts for Nakasero and Owino markets.

This was after Victoria Limited and Sheila Investments Limited failed to remit an estimated sh4.8b in tax collections to KCC.

Hassan Basajjabalaba, who owns both companies, sued KCC over the cancellation of the contracts. The injunction barred KCC from taking over the running of the market. The vacuum was then filled by the Owino Market Vendors Association.

Sebaggala told the New Vision that the money collected from Owino market is banked on the accounts of the central division.

“The headquarters is telling lies. We (KCC) are barred by the court injunction from running the market and the vendors are banking the money on the central division accounts,” he said. He did not disclose how much was being banked.

The central division chairman, Nyakana, said the mayor agreed that the vendors collect monthly market dues. “I do not see any wrongdoing when vendors take control of the market,” he said but declined to discuss issues related to the money collected from Owino.

But the chairman of Owino Market Vendors Association, Godfrey Kayongo, disclosed that money collected by him from the market is passed on to “some individuals in KCC”.

He stressed that everything was being documented. “Whatever money we collect is documented and we document whatever is collected from us.” He argued that despite the court injunction, the vendors should continue to pay rent arrears. He said KCC also foots the electricity and water bills.