Some of the delapidated buildings (above and below) built on Jinja Main Street in 1920s. Jinja City Council says they lose Shs5.3b annually from uncollected property revenue. PHOTO /DENIS EDEMA
Jinja City Council loses Shs5.3 billion annually due to uncollected taxes from dilapidated Asian properties, according to authorities. These taxes include property tax, ground rent, and rental income tax.
Jinja is home to many old buildings constructed in the 1920s, some of which have never been repainted or maintained. In 1972, President Idi Amin expelled Asians from Uganda, leading to the formation of the Departed Asian Property Custodian Board (DAPCB) to manage these properties.
“The failure to collect Shs5.3 billion annually from the dilapidated Asian properties has affected service delivery in the area,” said Jinja City Council Speaker, Mr Bernard Mbayo.
Mr Mbayo revealed that the council is struggling to redevelop these deteriorating structures due to unclear ownership. “Some buildings have been allocated to multiple individuals, and the matters are currently in court. We are awaiting the court's ruling and judgement,” he said.
To address this issue, the council has begun advertising some of these properties to initiate tax collection.
“We are calling upon individuals claiming ownership to verify their documents with the city land board,” Mr Mbayo added.
He further explained: “The City Council legally recognises only tenants paying taxes for properties under their names. Those holding temporary leases or documents from DAPCB must verify them with the land board committee.”
Efforts to obtain a comment from DAPCB were unsuccessful. Some city leaders, speaking anonymously, noted that Jinja had lost trillions in revenue even before being granted city status, attributing this to unclear ownership, as many properties remain under DAPCB with absent landlords.
Mr Benjamin Isabirye, former chairman of the Area Land Committee for the defunct Jinja Central Division, noted that after expelling Asians in 1973, former President Amin nationalised most properties, allocating them to government institutions such as hospitals, schools, police, prisons, and the army.
Mr Isabirye suggested that the government should find a permanent solution for these buildings to boost city revenue collection.
In 2006, the council condemned 123 buildings due to their deteriorating conditions. However, many remain standing, as owners lack the resources to demolish or renovate them.
Mr Nasser Ashiraf, the mayor of Jinja North Division, where most of these buildings are located, confirmed that DAPCB has not been paying property taxes or ground rent, despite collecting rent from tenants.
“Tenants are paying rent to DAPCB, but Jinja Council has not received property tax or ground rent from these buildings since 1979,” he said.
“The government needs to clarify its position on these buildings to support Jinja City’s infrastructure development,” Mr Shiraf added.
Mr Juma Ssozi, the Jinja City Council secretary for Works, argued that the lack of ownership clarity hinders the implementation of the city’s physical plan.
“It is high time stakeholders took action to replace these old structures with modern developments,” he said. “I appeal to DAPCB to collaborate with Jinja City Council to ensure these buildings are developed to generate revenue.”
Mr Ssozi suggested that property owners unable to meet the new physical development standards should sell to potential developers.
“According to our Physical Development Plan, commercial areas must have four-storey buildings. However, we still have bungalows of Asian architecture in the city’s business district, causing significant revenue losses,” he added.
Affected buildings
Most condemned buildings are located along Lubas, Oboja, Spire, Gabula, Kirinya, Nadiope, Circular Roads, and Madhvani, among others. Many of these buildings have cracked walls and rusty exteriors.
However, some historical buildings will be preserved for their colonial-era significance and tourism value. Currently, there is tension between preserving Jinja’s heritage and the need for urban development. While some advocate for the demolition of old buildings for modern infrastructure, others emphasise maintaining the city’s historical character.
A notable example is the Crested Crane Hotel, a colonial-era building that previously served as the Uganda Hotel and Tourism Training Institute but has since been demolished to align with current development plans.
