City traders operating from Kabale Arcade, Viani Business Center and Energy Center in Kampala owned by businessman Drake Lubega have protested a 10% increment in their monthly rent for shops on the buildings.
in a meeting convened by their Chairman Lwanga Augustine protested an announcement of a 10% increment in their monthly rent.
In a meeting convened by their chairman, Augustine Lwanga, the traders raised concern over the sudden hike in rent and appealed to the businessman to reconsider his decision.
These resolved not to pay the 10% rent increment until they get official communication from their land lord.
The traders also resolved not to pay dustbin fees until Kampala Capital City Authority (KCCA) intervenes, noting that they are already overburdened by the multi taxes from government.
The development comes on the backdrop of complaints by traders operation from Shamba Complex located along Nabugabo road near Kisekka market owned by John Bosco Muwonge who threatened to abandon shop due to exorbitant rent.
The traders led by United Arcade Traders’ Entrepreneurs Association chairman Edward Ntale said they were to vacate shops on this building because they had taken the usual rent fees they pay to the landlord but the money and told each of them to pay more shs80,000 each day they have spent after paying for the month they had spent in the shops.
“Even before, the rent fees we have been paying was too high for us. How can the landlord now increase rent fees which is more than 10% , an increment stipulated in the law? This is unfair because the landlord is forcing us to pay at least shs600,000 yet we already have loans we are servicing,” one of the affected traders said.
The traders said that they are harassed and pressured the Shamba Complex building manager, Florence Achan, noting that the manager closes their shops which they noted makes them lose out on sales as well as government losing out on taxes.
The group chairman, Ntale, said that the traders are vacating the building because their landlord told them to pay more shs600, 000 which is more than the 10% increment stipulated in the law.
They said their landlord has failed to take into consideration the current cash flow hardships.
“Some of our members are selling off their shops on good will basis to leave business. The others who are still operating are also planning to leave by the end of year.”
In a related development, traders dealing in rice from Tanzania and other agricultural produce at Nakayiza building in Kisenyi are also protesting against the increased rent.
They say the shs500,000 addition on their monthly rent is too high and many of them have threatened to leave business.
Mwanje Ganyana, the traders chairperson claimed that their landlord said their landlord had sent a team that cut off their padlocks and replaced them with his own but also denied them access to the shops until the shs500,000 is paid.
Edwin Ntale, the Chairman of United Arcade Traders’ Entrepreneurs’ Association said that landlords are exploiting them and once traders complain, police and the army are brought to either arrest or throw them out of shops.
The development comes on the backdrop of threats by traders under their umbrella body Kampala City Traders Association (KACITA) led by Thadeus Musoke Nagenda who in September threatened to stage a demonstration by closing their shops if Uganda Revenue Authority(URA) fails to revise the 6% withholding tax imposed on traders.
The affected traders were small-scale and wholesale traders in Kikuubo trading area, St Balikudembe Market Ham Enterprises among others in Kampala Metropolitan.
Contacted for a comment, KACITA spokesperson, Issa Ssekitto said whereas they would be willing to help their fellow traders in arcades , they can only seek legal redress.
“The problem of rent was solved by the Landlord and Tenant Act 2022 in which it was agreed that the landlord can only increase rent after giving three months warning to tenants and the increment should not be more than 10%. This can only be done twice a year,” Ssekitto said.
He said KACITA cannot help out all its members but said those aggrieved can seek legal redress.
“How many cases are we going to pursue if we are to help? It is their responsibility to seek legal redress in case of an illegality. Any illegality can be addressed through litigation.”