Usafi : The ‘ghost’ city market trading in empty space

At Kalintusi in Katwe, Kampala, stands an imposing makeshift building with red iron sheets. To the right women are nimbly sorting peas for sale while those who operate small restaurants scramble for customers.
On the left hand side are a handful of vendors on the first row but behind them are wooden empty stalls, which are said to have been abandoned.

A commuter taxi park, which was established to boost the retail trade activities, sits on the upper land of the market.
The facility, which sits on a six-acre piece of land, was bought by Kampala Capital City Authority on March 10, 2015, at Shs39b from Mr Umar Ssekamatte Nasoro, the
former proprietor of Safinet Uganda Ltd. The market was to accommodate street vendors, many of whom had been driven off Kampala streets. The Cabinet had on July 8, 2014 resolved
that the land be bought.
But questions soon arose regarding the price – Shs39b – for the six acres of land.
More controversy was to follow with ownership wrangles cropping up between Mr Ssekamatte and others.
The latest query is from Ms Faridah Nantale and Mr Ahamada Sserwadda, who have petitioned the Minister for Kampala City Authority, Ms Beti Kamya, imploring her to halt any further payments to Mr Ssekamatte.

The petition copied to KCCA Executive Director Jennifer Musisi and the Lord Mayor Erias Lukwago reads in part: “…take notice therefore that our clients contest and protest any further payment to Safinet Uganda Ltd in respect of land at Katwe which our clients have all along claimed as owners,” the petition copied to KCCA Executive Director Jennifer Musisi and the Lord Mayor Erias Lukwago reads in part.
The duo claims they are the right administrators of part of the land which forms the Usafi Market.
The land, they say, belonged to the late Muhammed Mukoloboza Gavamukulya.

Mr Umar Ssekamatte, who declined to speak to Daily Monitor for this article has previously claimed he bought the 22 plots which form the six acres of the land where the market sits at Shs350m each and that he bought it from three people; Mr John Senseko Kulubya, Mr Imam Bhati, and Mr Kassim Ssesimbwa.
The Undersecretary for Kampala City Authority, Mr Samuel Baker Emiku, said they had received a complaint over the Usafi Market land ownership wrangle but said the minister is investigating the matter.
“We have written to the Minister of lands to prove these fresh claims over Usafi Market land and when they respond to us, we shall take action as soon as possible. We have also asked KCCA to carry out investigations over the matter,” he said.

Although the KCCA spokesperson, Mr Peter Kaujju, denied meeting any encumbrances during the purchase of the land, the Secretary to the Treasury, Mr Keith Muhakanizi, had warned KCCA executive director Jennifer Musisi to thoroughly establish ownership of the land before proceeding with the purchase.
Mr Muhakanizi had been petitioned by Nagimesi and Co. Advocates, who asked him to halt the payment process to Mr Sekamatte.
They were representing Ms Nantale and Mr Sserwadda, who claim to be the administrators of the
late Mohammed Mukoloboza’s land which they say, forms part of Usafi Market.

“This is therefore to advise you that before any action can be taken regarding the payments of Usafi Market, we wait for your response regarding this matter which is already before Court pending hearing and determination,” reads in part Mr Muhakanizi letter dated October 17, 2014. However, on
October 23, 2014, Ms Musisi wrote to Muhakanizi clarifying the legal issues in the purchase of Usafi Market and requested for funds required for the purchase.
But Ms Nantale claims KCCA rushed to pay Mr Ssekamatte despite their demand to clarify on the right full owner of the land in dispute.
“Court hadn’t made any ruling of the same but we were surprised to hear that KCCA had already paid the first instalment without our consent. We have petitioned both KCCA and the Minister for Kampala in vain yet they are aware of our complaint,” she says.
According to documents, KCCA would contribute Shs7b only from its local revenue collection towards the purchase of Usafi Market land but asked for a supplementary budget, which she said would be paid later.

The Finance Minister, Mr Matia Kasaija, then wrote to the Auditor General on 12 October
2014, to authorize a supplementary expenditure of Shs7b to enable KCCA make partial payments.
Mr Kasaija, in his letter, advised Ms Musisi to ensure the purchase of the land goes through the right procurement process and is free from encumbrances.
“…By copy of this letter, KCCA Accounting officer is informed and advised to follow the law in its procurement in addition to conducting due diligence to ensure that this market is free from encumbrances,” reads in part the letter.
According to the sale agreement between Safinet Uganda Ltd and KCCA obtained by Daily Monitor, KCCA was supposed to Pay Shs. 39b in four instalments.

In the first instalment, Shs7b would be paid to the vendor (Safinet Uganda Ltd) while the second instalment of Shs2,909,141,000 would be paid within a period of one month after the first instalment.
The third instalment of Shs.3, 450,000,000 would be paid by the purchaser before June 31, 2015, while the last instalment of Shs 26,108,859,000 would be paid by the purchaser in its budget for FY 2015/2016 and be paid within FY 2015/2016.
Although one of the conditions in the sale agreement was that the seller would surrender all the land titles to the purchaser, sources within the KCCA technical team told this newspaper that all the land titles are still with the seller.
According to the sale agreement, KCCA still owed Shs20b as of June 27, 2016, to Safinet Uganda Ltd.

This compelled Mr Ssekamatte to sue the former of failure to pay his last instalment. However, he has since withdrawn the suit, opting for negotiations.
Documents further show that although KCCA had committed to paying Shs7b of the Shs39b, it has only paid Shs6,109,000,000 and to date, it hasn’t paid a balance of Shs891,000,000.
KCCA Spokesperson, Mr Peter Kaujju, told Daily Monitor that they only owe Shs. 15b to Mr Ssekamatte.
“It true Mr Ssekamatte withdrew the case and we are now into negotiations and we are committed
to pay his last installment. For now, we owe him only Shs. 15b.” Mr Kaujju said.

Daily Monitor has further learnt that before the purchase of the land in dispute, Ms Musisi wrote to the Auditor general, Mr John F.S Muwanga, on April 24, 2014, requesting him to conduct an independent valuation exercise for Usafi Market and the Commuter Taxi Park.
However, Mr Muwanga wrote back to her on May 16, 2014, informing her that the valuation of
property that leads to compensation is the mandate of the Chief Valuer as envisaged under the Land Act, Cap. 227 (as amended).
“…I therefore wish to advise you to liaise with the Permanent Secretary, Ministry of Lands, Housing and Urban Development, as well as the Chief Government Valuer requesting for a review of the valuation findings spelling out the reasons as to why you feel the current valuation isn’t justified,” reads in part the letter.

On November 1, 2013, the Chief Government Valuer, Ms Ruth Kabege, wrote to the President and informed him that the land comprising Usafi Market and the Commuter Taxi Park should take Shs33b only.
“…In accordance with the terms and references and the accompanying valuation list, this is to certify that the total market and Commuter Taxi Park at Kalitunsi for purchase sale purpose is in the region of Shs33,830,000,000 only,” reads in part the letter, which was also copied to the KCCA Executive Director and the Minister for the Presidency.
In her letter, Ms Kabege noted that she recommended the purchase of this land because of its big acreage within the city periphery of the central business district, its proximity to the city centre and that the property has been valued as an entity.

But she noted that she had searched for the land titles with the Land Registry but they were nowhere to be seen and advised KCCA Legal department to handle the matter.
Although Ms Kabege valued the land at Shs33b, Ms Musisi wrote to her on July 17, 2014, informing her that the extension of the leases of property comprised on plot 5-9, Katwe Road by 10 years with effect from August 1, 2013, and plots 346,347,348,349 and 370 at Mengo from 49 years to 96 years with effect from October 1, 2008, met some costs which hiked the cost from Shs33b to 39b.

She also argued that the vendors’ projection of gross revenue when the market and the taxi park are occupied is Shs1b.
However, in her letter to Mr Ssekamatte’s lawyers dated July 17, 2014, Ms Musisi revealed that the current monthly revenue collection from Usafi Market is Shs47m and Shs254m from Usafi Park, making it Shs301m for both.
But KCCA Director of Revenue collection, Mr Samuel Sserunkuuma, told Daily Monitor that Usafi Market produces a revenue of Shs60m per month but attributed the low collection on vendors, whom he said don’t pay rent and other licences.
“Our revenue collection in Usafi has been greatly affected by the failure of the vendors to fulfil
their obligations and as a result, we collect about Shs60m only per month,” he said.

The current revenue collection from both Usafi Market and Usafi Park doesn’t, however, reflect Ms Musisi’s assumption two years ago that projected the revenue collection at Shs1b from both the Market and the Park.
According to the report on the current status of city markets dated October 24, 2016, which was compiled by KCCA councillors on committees of gender community services and production and that of revenue collection, noted that KCCA has accumulated rental arrears of Shs260m on Usafi Market.
“…from our research carried out, the rental arrears accumulated because of the low turn up of the customers and this leaves vendors without money to pay rent. We suggest that the arrears be waived off so that a new slate of tax collection starts,” reads in part the letter.

Mr Kaujju says that waiving off any rental arrears on a government property needs legal advice and that since the authority council made a resolution, the technical team will also pronounce its position on the matter.
In the same report, councilors revealed that majority of lock-up shops and stalls are owned by other people yet the market was bought to benefit the ordinary vendors.
They recommended a special audit of the ownership of space be done to ascertain who owns which lock-up shops. They also recommended a 30 per cent reduction on the rental charges to allow vendors, especially those on city streets, to go and work there. The current rent for a lock-up shop in Usafi is charged Shs120,000 while a stall goes for Shs6,500.

Usafi market and park were constructed to accommodate at least 5,000 vendors and 800 taxis respectively.
However, many vendors have abandoned the market because buyers are hard to come by, which
has negatively affected the Usafi Park with taxi operators relocating to illegal stages.
The Kampala Lord Mayor, Mr Eriasa Lukwago, insists on a probe into the issues of the market.

“This is a serious issue which needs attention. The people claiming to be owners of this land are known and Parliament is a ware about it. If the matter isn’t solved, the staggering Shs39b that government approved could be a loss,” he says.
According to the Government Chief Valuer’s report, the market is supposed to have market stands, the butchery block, permanent market stalls, barber shop, a police post and a toilet block.
The taxi park would have an administration block, a generator house, two face blocks of lock-up shops, single face blocks of lock-up, commercial blocks, a commercial tenant block, a toilet block and a pitlatrine. But, for now, the envisioned complex is a ghost of itself.

[email protected]