Owino market lease cancellation faces growing opposition

Women sort groundnuts at St Balikudembe (Owino) Market in Kampala on March 31, 2020. PHOTO/ FILE

What you need to know:

  • President Museveni has ordered the cancellation of the land title of the market.

The leadership of St Balikuddembe Market Stalls, Space and Lockup Shop Owners Association (SSLOA) has accused the chairman of Kampala District Land Board (KDLD), Dr David Balondemu of abuse of office and conflict of interest.
The accusations come a couple of days after SSLOA’s duplicate lease certificates were recalled for cancellation at the behest of President Museveni following Dr Balondemu’s petition.

President Museveni in a July 4 letter to Ms Judith Nabakooba, the Lands minister, ordered the cancellation of the land title of St Balikuddembe (Owino) market in Kampala, arguing that market land is communal and cannot be claimed by individuals.
“Markets are a nursery to our low-income business beginners. They should operate there cheaply and when they are richer, they move out to more expensive operational bases. When you privatise it to the current traders, what happens to future generations?’’ the President wrote.
In an October 21, 2021, letter, Dr Balondemu had written to Mr Museveni, revealing that the commissioner of titles had refused to cancel the title in the name of SSLOA. This, he added, was even after KBDL had resolved it be cancelled because SSLOA had breached the lease covenants.

The traders, through their director for security, Mr Godfrey Kasiita, claim that theirs is a classic case of witch-hunt.
“It is on record that Balondemu has held personal interest in our market. His law firm in 2020 is claiming to represent traders we don’t know about,’’ Mr Kasiita said.
In the June 6, 2020, letter, Mr Balondemu’s law firm informed then House Speaker Rebecca Kadaga that the market had erroneously been sold to private owners who mortgaged it to dfcu Bank yet the loan had not been paid up at the time.

Impact
“Due to the aforesaid wrangles, many of our clients have in the process lost their property and lives as a result of barbaric actions of self-seeking elements involved in the market affairs,” the letter reads.
The letter also consequently wanted to find a “permanent solution to the ownership disputes”. 
But, in a rejoinder, Dr Balondemu said the letter doesn’t bear his signature.
“We act as a group; I need to ascertain, to check records whether it originated from us,’’ Dr Balondemu told Sunday Monitor via telephone, before advising the SSLOA team to sue if they feel offended.

Certificates recalled
In a July 18 letter addressed to SSLOA, Mr Bigiira Johnson, the commissioner land registration, cancelled a 10-year lease that had been issued to them.
“This is to notify you that the office of titles has noted a re-entry vide instrument KCCA-00094262 of 15/07/2022- following an application by Kampala District Land Board for re-entry having breached the clauses of the lease agreement,” Mr Bigiira wrote, adding, “You are requested to return the duplicate certificates of title in your custody back to the office of titles for cancellation within seven days.”
SSLOA officials have, however, contested the re-entry, saying it is prejudicial because it was started by a person they claim was conflicted. They wrote to Mr Bigiira on July 20, arguing that their lease agreement has no provision for re-entry. 

“But also most importantly, KDBL has never notified us of any breach of any of the covenants requiring us as provided by the law to rectify within 30 days failure of which would entitle them a right to reenter,” the letter further reads.
President Museveni has been intransigent in his position that the market should never be ceded to a private investor. SSLOA has partnered with Al-Ameri Intel Company East Africa to redevelop the market.
Background
Owino covers about 8.5 acres of land and was constructed in 1971 at Nakivubo. Initially, Owino market was managed by the defunct Kampala City Council (KCC) until May 31, 1995, when vendors took over management. On October 31,  KCC dissolved the vendors’ leadership and handed over the market to city businessman Hassan Basajjabalaba under his Victoria International Company. The company managed the market from November 2002 to 2006.
On January 19, 2009, President Museveni ordered that the land on which the market sits be leased to the vendors.