Will new policy end wrangles over markets?
Oct 17, 2007
OVER the years, there have been wrangles between local governments and vendors over the award of tenders. The wrangles have been pronounced in Kampala district over the management of markets, in Masaka Municipality over taxi parks and Mbale Municipality over a park and markets.
By Joshua Kato
and Florence Nakaayi
OVER the years, there have been wrangles between local governments and vendors over the award of tenders. The wrangles have been pronounced in Kampala district over the management of markets, in Masaka Municipality over taxi parks and Mbale Municipality over a park and markets.
Millions of shillings are collected in market dues every month and perhaps that is the major cause of wrangles. For example, St. Balikuddembe Market remits about sh120m to Kampala City Council (KCC) every month, while Nakasero collects about sh40m.
A few years ago, local governments came up with a policy to tender the management of markets and revenue collection to private firms. This is when Hassan Bassajjabalaba’s Sheila Investments and Victoria International took over the management of Nakasero and St. Balikuddembe markets.
To streamline the award of tenders, the Government has come up with a new policy. “There shall not be change in the management of markets, subject to the Town and Country Planning Act,†Local Government Minister, Maj. Gen. Kahinda Otafiire, said while presenting the policy to Parliament, recently.
The Act is under review and will soon be finalised. Although it is mandatory for all districts to have development plans, many of them do not have plans.
“The sitting tenants who own stalls (emidaala) or kiosks in the markets shall register under an association and shall be given first priority in the development and management of markets,†the policy states. This is not new since most market vendors have formed associations.
However, only vendors with stalls are registered under the associations and not the entire vendors’ community in the markets. There has always been trouble identifying a real vendor. For example, although St. Balikuddembe Market has about 12,000 stalls, it has a business community of over 60,000 people, while Kisekka Market has 880 registered stall-owners, with about 10,000 vendors.
The fact that the policy does not consider vendors who do not own stalls is a recipe for disaster. On many occasions, registered stall-owners have made agreements with co-developers, only for confusion to erupt from unregistered vendors after the award of tenders. In Nakasero Market, for example, more than half of the stall-owners had accepted Basajjabalaba’s offer, but unregistered ones refused.
According to the policy, the sitting vendors shall be free to redevelop the markets on condition that they mobilise funds, have the capacity to construct modern structures and have permission from local councils. Kampala mayor Nasser Sebaggala has always insisted that KCC follows this policy while awarding tenders.
In some instances, vendors have been able to mobilise funds to construct modern structures. In Shauri Yako, for example, each of the 600 vendors paid a premium of sh1m. Rock Luzze, the Shauri Yako Market Vendors Association chairman said the money was used in the initial stages of the construction of the building, worth sh14b. The building is nearing completion.
In Kamwokya Market, vendors claim they have mobilised funds to modernise the market, subject to permission from KCC. “We have already collected funds and identified a bank that has accepted to lend us money,†said Yusuf Ssenoga, the chairman of Kamwokya Market Vendors and Stall Owners Association.
Ssenoga said they requested KCC for permission to redevelop the market last year, but have not received any feedback.
“In the event that the vendors are unable to raise the funds to reconstruct their markets, they shall be free to identify a partner with whom they can pool resources and build and manage the markets together,†the policy states.
This has been happening in many markets. However, trouble will always arise from the management of the joint venture. For example, when St. Balikuddembe Market had just been reconstructed, the Government handed it to Nkajja Kayongo, the leader of the vendors, but a section of vendors opposed him. Hajji Siraje Mbuga, while still the chairman of Nakasero Market, was also opposed by another section of vendors.
The Government should look out for such divisions among vendors before allowing them to manage the markets.
The policy states that in the event that the vendors fail to fulfill these requirements, the Government and local governments shall develop the markets and rent them to vendors, giving priority to the sitting vendors. This is the best proposal, but it will be back-tracking from an earlier Local Government policy of tendering out development of markets.
In Wakiso district, at least five markets were redeveloped by the district administration, which handed them over to vendors for management. These include Kajjansi with 100 stalls and a capacity of 250 people, Bayita Ababiri with 100 stalls, Bulaga with 108 stalls and a capacity of 250 people. The over sh2.5b project was funded by the Government and Wakiso district administration. Now that this policy is out, embattled vendors can hope that their troubles will be solved under the law.
Local councils, send your programmes for meetings and other activities to Local Leader, by sending an SMS or calling 0712841688 or e-mail
localleader@ newvision.co.ug
and Florence Nakaayi
OVER the years, there have been wrangles between local governments and vendors over the award of tenders. The wrangles have been pronounced in Kampala district over the management of markets, in Masaka Municipality over taxi parks and Mbale Municipality over a park and markets.
Millions of shillings are collected in market dues every month and perhaps that is the major cause of wrangles. For example, St. Balikuddembe Market remits about sh120m to Kampala City Council (KCC) every month, while Nakasero collects about sh40m.
A few years ago, local governments came up with a policy to tender the management of markets and revenue collection to private firms. This is when Hassan Bassajjabalaba’s Sheila Investments and Victoria International took over the management of Nakasero and St. Balikuddembe markets.
To streamline the award of tenders, the Government has come up with a new policy. “There shall not be change in the management of markets, subject to the Town and Country Planning Act,†Local Government Minister, Maj. Gen. Kahinda Otafiire, said while presenting the policy to Parliament, recently.
The Act is under review and will soon be finalised. Although it is mandatory for all districts to have development plans, many of them do not have plans.
“The sitting tenants who own stalls (emidaala) or kiosks in the markets shall register under an association and shall be given first priority in the development and management of markets,†the policy states. This is not new since most market vendors have formed associations.
However, only vendors with stalls are registered under the associations and not the entire vendors’ community in the markets. There has always been trouble identifying a real vendor. For example, although St. Balikuddembe Market has about 12,000 stalls, it has a business community of over 60,000 people, while Kisekka Market has 880 registered stall-owners, with about 10,000 vendors.
The fact that the policy does not consider vendors who do not own stalls is a recipe for disaster. On many occasions, registered stall-owners have made agreements with co-developers, only for confusion to erupt from unregistered vendors after the award of tenders. In Nakasero Market, for example, more than half of the stall-owners had accepted Basajjabalaba’s offer, but unregistered ones refused.
According to the policy, the sitting vendors shall be free to redevelop the markets on condition that they mobilise funds, have the capacity to construct modern structures and have permission from local councils. Kampala mayor Nasser Sebaggala has always insisted that KCC follows this policy while awarding tenders.
In some instances, vendors have been able to mobilise funds to construct modern structures. In Shauri Yako, for example, each of the 600 vendors paid a premium of sh1m. Rock Luzze, the Shauri Yako Market Vendors Association chairman said the money was used in the initial stages of the construction of the building, worth sh14b. The building is nearing completion.
In Kamwokya Market, vendors claim they have mobilised funds to modernise the market, subject to permission from KCC. “We have already collected funds and identified a bank that has accepted to lend us money,†said Yusuf Ssenoga, the chairman of Kamwokya Market Vendors and Stall Owners Association.
Ssenoga said they requested KCC for permission to redevelop the market last year, but have not received any feedback.
“In the event that the vendors are unable to raise the funds to reconstruct their markets, they shall be free to identify a partner with whom they can pool resources and build and manage the markets together,†the policy states.
This has been happening in many markets. However, trouble will always arise from the management of the joint venture. For example, when St. Balikuddembe Market had just been reconstructed, the Government handed it to Nkajja Kayongo, the leader of the vendors, but a section of vendors opposed him. Hajji Siraje Mbuga, while still the chairman of Nakasero Market, was also opposed by another section of vendors.
The Government should look out for such divisions among vendors before allowing them to manage the markets.
The policy states that in the event that the vendors fail to fulfill these requirements, the Government and local governments shall develop the markets and rent them to vendors, giving priority to the sitting vendors. This is the best proposal, but it will be back-tracking from an earlier Local Government policy of tendering out development of markets.
In Wakiso district, at least five markets were redeveloped by the district administration, which handed them over to vendors for management. These include Kajjansi with 100 stalls and a capacity of 250 people, Bayita Ababiri with 100 stalls, Bulaga with 108 stalls and a capacity of 250 people. The over sh2.5b project was funded by the Government and Wakiso district administration. Now that this policy is out, embattled vendors can hope that their troubles will be solved under the law.
Local councils, send your programmes for meetings and other activities to Local Leader, by sending an SMS or calling 0712841688 or e-mail
localleader@ newvision.co.ug