Tension in Usafi Market as KCCA asks vendors to re-apply for stalls

At work. Vendors go about their businesses at a section of Usafi Market in Kampala recently. In a move aimed to streamline both the management and operations of the market, vendors have been asked to re-apply for stalls and shops. PHOTO BY ALEX ESAGALA.

What you need to know:

  • New move. In a bid to weed out manipulative middlemen subletting shops in Usafi Market and charging exorbitant rental fees, KCCA is asking all vendors to re-apply for the stalls and shops.

Kampala.

A new management plan in Usafi Market that was recently unveiled by Kampala Capital City Authority (KCCA) to streamline the acquisition of shops, has caused unrest among some sitting shop occupants who have since opposed the directive.

KCCA’s fundamental drive is to weed out manipulative middlemen who have been subletting shops in Usafi Market and charging exorbitant rental fees.

But some of the current occupants accuse KCCA of dashing to allocate shops without engaging them to ascertain the manner in which they acquired the shops.

Following the vendors’ uproar, KCCA, in response, convened a crisis meeting at City Hall on July 12 between shop owners and vendors to find a lasting solution to the continuous fights in the market.

Mr Theo Thika, the Kampala Central Division Town Clerk, revealed that all vendors in Usafi Market are supposed to re-apply for new stalls and shops, adding that every vendor would be allocated either one stall or shop for purposes of parity.

“We need to streamline both the management and operations of Usafi Market and this can only be done by weeding out middlemen who have since taken advantage of the ordinary vendors by subletting shops at exorbitant fees,” he said.
The re-application exercise will take two weeks. Mr Thika said, re-allocation of stalls and shops will kick off by end of next month.

Daily Monitor has learnt that although vendors have unanimously welcomed the directive with hopes of acquiring working spaces, some shop owners and middlemen are opposed to the idea.

They claim that they contributed a lot of money towards the construction of the shops before KCCA bought the market, arguing that they deserve compensation, a claim the latter disputes as lies.

KCCA warned
Some shop owners, who spoke to Daily Monitor, warned that KCCA risks being sued if the exercise is rushed.
Mr Willy Kiwanuka Ssentongo, who owns multiple shops in the market, alleged that when the former owner of the market, Mr Umar Nasoro Ssekamatte, handed over the market to KCCA, the latter never bothered to engage the existing landlords on how they acquired the shops.

“While handing over Usafi Market to KCCA, Mr Ssekamatte noted that landlords must be engaged. He also said that there must be peaceful transition from the old management of shops to KCCA’s regime. Some of us had running tenancy agreements with Ssekamatte but he just ran away without sorting out the matter yet we had spent a lot of money during the construction of the shops,” Mr Kiwanuka said.

He added: “We petitioned KCCA several times to come to our rescue in vain. We expected them to come on ground as soon as Mr Ssekamatte left but they now want to throw us out of our shops without double-checking how we acquired them. Is this really fair?”

He noted that before the eviction starts, the existing landlords must be given audience to justify why they are protesting the exercise.

Daily Monitor has established that although KCCA bought Usafi Market from Mr Ssekamatte on April 7, 2015, majority vendors and shop owners are still using tenancy agreements that were signed by the former.

They fault KCCA for being ‘irresponsible’ by allegedly failing to issue their own tenancy agreements to the vendors and shop owners in the market, something they claim, kept majority of them under suspense on who exactly owns the facility.

Mr Henry Mutiibwa, the Usafi Market KCCA interim chairperson, acknowledged the fact that delayed issuance of tenancy agreements to the vendors by KCCA caused uncertainty in the market.

“It’s true some of the landlords in the market took advantage of KCCA’s delayed issuance of tenancy agreements and that’s why they have been subletting shops and charging rental fees at their own wish,” he said.
Mr Mutiibwa, however, explained that majority of vendors don’t have working spaces because many shops are being sublet yet the poor vendors can’t manage to pay the high rental fees.

Mr Robert Kalumba, KCCA’s deputy spokesperson, however, insists that nobody should claim ownership of Usafi Market shops.
He said those with complaints can seek court redress.

KCCA officials accused
Another theory in Usafi Market, which this newspaper couldn’t independently verify, is that some of the shops are owned by some officials at KCCA.
Some vendors interviewed by this newspaper alleged that KCCA officials have been blocking the re-allocation of shops to protect their interests.

“These officials, we were told, don’t remit any fares to KCCA and they continue charging high rental fees despite council’s resolution to have subletting banned and all rental fees reduced.

During a special authority meeting held on October 24, 2016, KCCA council, headed by Kampala Lord Mayor Erias Lukwago, resolved that subletting of shops and stalls in Usafi and Wandegeya markets be banned.

Council also resolved that rent in both markets be reduced by 40 per cent. This was to take immediate effect.

In an internal memo dated January 10, 2017, the KCCA acting director of revenue collection, Mr Fred Andema, directed the team leader of markets, Mr George Odimbe, to implement council’s resolution.

“…You are, therefore, requested to engage the leadership of the above markets and communicate to them this council resolution and at the same time make arrangements to commence implementation of the same effective January 2017,” the memo reads in part. However, the directive was defied.

According to the new rates, a stall goes for Shs6,500 per month, while shops go for Shs300,000 and 180,000, respectively, depending on the size and location. An open space will go for Shs1,000 daily.

New details emerge
Documents seen by this newspaper show how there is bad blood between KCCA and the brokers of the Usafi Market purchase. The latter accuses the former of ‘betraying’ them on the purchase deal.

On December 18, 2012, a deal was reportedly brokered by former Kampala minister Frank Tumwebaze between Mr Ssekamatte and the 12 representatives of the street vendors.

These are Mr Joseph Kagolo, Mr Sulaiman Kiyaga, Mr Yasin Sekabira, Mr Olive Kisakye, Mr Muhamad Ssegwanyi and Mr Hanington Kakonye.

Others include Mr Joseph Kasozi, Ms Bena Mbabazi, Mr Sulaiman Male, Mr Juma Tinyefuza, Mr Ronald Kayemba and Mr Yasin Kawooya.

Their task was to mobilise their fellow street vendors and convince them to relocate to Usafi Market. After executing their task, they would be given a token of appreciation. But they were allegedly not compensated as per the earlier agreement.

However, these people have been reportedly given the first priority to apply for the shops.

If the new directive of re-allocating shops is embraced, vendors will get a sigh of relief as far as acquiring working spaces is concerned but as of now, their fate looks bleak.

Background

The market. Usafi Market sits on 22 plots of land, which make 6.11 acres of land at Kalintunsi, Mengo-Kisenyi in Kampala.

KCCA takeover. KCCA bought Usafi Market on April 7 2015 from the proprietor of Safinet (U) Ltd, Mr Ssekamatte at a staggering Shs39b, raising eyebrows among people who demanded to know how such a price was reached at.

The market was supposed to accommodate street vendors and other city ordinary vendors. However, the market has since remained in the hands of the ‘rich’ hence attracting complaints from the ‘poor’ beneficiaries.

Legal battles. Although KCCA bought the facility, this newspaper understands that there are several legal battles still surrounding the transaction.

For instance, Ms Faridah Nantale and Mr Ahamada Sserwadda have since petitioned the Ministry of Lands to have the ongoing land probe committee to look into Usafi Market land wrangles.

The duo claim that Usafi Market land belonged to the late Muhammed Mukoloboza Gavamukulya and that they were its administrators.