Government is also supposed to foot transport fares for passengers and their goods for boarding the KIS Ferry. Every year, Government is supposed to pay 7billion shillings to Kalangala Infrastructure services limited.
Kalangala Infrastructure Services-KIS has grounded its ferry services on Lake Victoria, a month after launching its operations because of lack of funds. In May, KIS started operating private ferry services between Bukakata and Luku landing site in Kalangala, under the Public Private partnership with government. Under the agreement, government committed itself to release shillings 7 billion annually to KIS for operating the ferry services.
However, the company has grounded the ferry services to Bukakata landing site citing lack of funds. John Opillo, the Managing Director KIS limited says that they decided to ground the ferry services after government failed to release partial funding for their operations as agreed in their agreement. Opillo says government was expected to give them some money to cover their operations for a year before all the money is paid.
He says that they will not resume operations until government releases funding, adding that KIS spent over US $ 60 million to build two ferries in Mwanza. Opillo warns that they will not hesitate to drag government to court for compensation if it does not release funds for their operations because they are wasting money to service their ferries despite the fact that they are grounded. Susan Kataike, the Ministry of Works Spokesperson says that they licensed KIS to operate private ferry services but is not aware of their arrangement with government.
The decision by KIS to ground the ferry services has drawn a mixed reaction from residents. Some of the residents are demanding to know the owners of KIS before government releases any money to the firm. Emmanuel Lule, the Chairperson Kalangala district NGO forum says although they accepted the amended agreement between government and KIS, residents still feel there are key issues like ownership which are yet to be cleared.
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Dan Alinange, the UNRA spokesperson says that they have decided to hold onto the old ferry until the issues surrounding the operations of the KIS ferry are resolved. He explains that the old Bukakata-Luku ferry is still in a good condition and can still operate.
kalangala transport contraversy