Landlords defend proposal to charge tenants in dollars

City property owners have opposed the Parliament’s proposal to compel tenants to remit rent charges in the local currency, defending their current arrangement of charging rent in form of dollars.

In their interface with Parliament’s Physical Infrastructure Committee, the landlords led by their chairperson Mr Sudhir Ruparelia reasoned that their decision to charge rent in dollars is because most of the materials used in construction and maintenance of the buildings and utility costs are charged in dollars.

On November 18, the Kampala Capital City Traders Association (KACITA) leadership through their spokesperson Mr Issa Ssekito requested Parliament to enact a law that demands that all tenants remit their rent in form of Uganda’s local currency. To this, the lawmakers on the Infrastructure committee pressed the landlords to reverse their decision, a proposal they declined to heed.

 “So why are we not proud of our shilling and why are we not promoting it? When you go to Kenya, irrespective of where you come from, you are told that you are supposed to transact in Kenya Shilling. But when you move around in some places here, the first thing they will tell you is that they charge in dollars,” Tororo Woman MP Ms Sarah Opendi noted.

“When I import things or travel and come back to the Entebbe International [Airport] the government of Uganda charges me in form of dollars. So our view is that all our tenants pay in form of shillings that is equivalent to dollars. If Uganda Revenue Authority is basing its taxes in dollars, then what about the ordinary businessman,” Mr Sudhir responded.

Soroti East legislator Mr Moses Attan Okia said there is a need to compel government ministries, departments, and agencies to stop charging clients in form of dollar currency.

“I think we also have a problem as a country with the Public Finance Management (PFM) Act in place but URA is abusing it plus Uganda Airlines and all the others are abusing it. Can we enforce this on the side of landlords when the government agencies are not observing the PFM,” he wondered.

The landlords’ leadership suggested that the changes to be effected in the current Bill should let both the landlord and tenant agree on the form of currency to be used.

Mr Maurice Kibalya, the Bugabula South MP, insisted that Parliament has clearly defined its position of demanding the rent be remitted in form of local currency. He reasoned that providing for two options of either dollar or local currency would still allow landlords to press tenants to remit in the dollar currency.

[email protected]