KCCA issues ultimatum on parking fees

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Thu 26 Oct, 2017

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Kampala Capital City Authority has issued an ultimatum to all commercial road users to clear parking and operational arrears amounting to Shs 4 billion within seven days.

The directive affects taxis, coasters, buses, trucks and motorcycles operating within Kampala.

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The money accumulated out of the failure by road users to pay dues while hiding under a July 22 presidential directive on the harmonization of taxes in the informal sector.

President Museveni had advised that informal sector players should be charged for an annual license as opposed to daily dues.

Subsequently, the minister for Local Government Tom Butime issued a directive indicating that all taxis operating within Kampala would pay a monthly rate of 120,000 Shillings.

Buses are expected to pay 150,000 Shillings while motorcycles would pay 52,000 Shillings.

Butime advised that commercial road users continue paying their obligations under the current arrangement while a mechanism of harmonization of the various fees is reviewed.

But commercial road users objected to the directive.

Fred Andema, the Acting Director of Revenue Collection at KCCA said that as a result, a shortfall of Shs 4 billion was recorded in the first quarter of the financial year 2017/2018.

The authority had anticipated revenue of Shs 26 billion from commercial road users for the year.

Now KCCA says they have a grace period of one week to clear their outstanding dues or face enforced recovery.

But Mustafa Mayambala, the chairperson of Uganda Transport and Development Agency (UTDA) scoffed at KCCA saying the ultimatum is meaningless and in contradiction of the presidential directive.

"We have been following KCCA. They always make contradicting orders, if it means having talks with the authority we will talk if it means fighting we will fight, but we will not pay the fees, the president's letter was clear to us," Mayambala said.