Businessmen in Jinja town have expressed concern about the prohibitive cost of operating business in the central business district.
Businessmen in Jinja town have expressed concern about the prohibitive cost of operating business in the central business district. They allege that many of their colleagues have been pushed out of business because of the prohibitive costs, which have reduced their profit margin. They cite the unfair increase of rental fees for commercial buildings by their land lords and exorbitant costs of land in Jinja municipality.
A 100 by 200 Feet plot, in Jinja municipality costs shillings 300 million up from shillings 40 million in the last two years. The rent for commercial buildings along Main Street, Iganga, Lady Alice Mulooki, Kutch, Nizam and Alidina roads has also more than doubled from shillings 600,000 each month over the past 1 year. While the rent on commercial houses found on Buwenge, Bugembe and Kakira town council street costs an average of shillings 100,000.
The drastic increase of rent has forced some traders who were operating in the central business area to close their businesses or move to less competitive areas to reduce on their operational costs. Pintu Polai, the manager of Phillips electronics out let along plot 47-49 Main Street says the rental fees has increased by more than 50% in the last three years despite low sales. He explains that about a year ago, traders along Main Street paid one million shillings in rent but it has more than doubled.
//Cue out “like this year, it has increased…
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Moses Batwala, owns Agatha property agencies along Iganga road. Batwala says that he considering relocating from the central business district because he can no longer afford rent. Steven Wante, LC3 Chairman Bugembe town council attributes the increase in rental fees to high demand for commercial premises because of the population increase in Jinja municipality. He says that many people are relocating from the rural sub counties to the town, thereby increasing competition for the few commercial buildings.
//Cue in “the population is growing…
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Musa Bashir, the manager of Hared Fuel Company says he says that he has failed to secure land in Jinja municipality and in Walukuba – Masese division to put up a commercial building. This has dented his hopes of constructing commercial storey buildings which could accommodate more businessmen and their business at a subsidized price.
Martin Engim, Jinja district government valuer attributes the increase in rent for commercial buildings and value of land to many factors. He says some people buy land and buildings with the hope of reaping big from them, years after. He says that as a result they deny new developers from using the land, which has led to shortage of commercial buildings in the central business district.
// Cue in “for sure say like a plot on Main Street…”
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high commercial rent and lack of land for expansion affect businessmen in jinja