Jinja Municipality Risks Losing Billions in Compensation to Egyptian Investor

2206 Views Jinja, Uganda

In short
The firm was granted a lease in 2003 to operate properties which include a foundry workshop, the beach, the landing site and a fish market in Masese. The project was also expected to assemble boats and ships to transport people and cargo to Kisumu and Mwanza on Lake Victoria. Its operations are however hampered by the existence of over 5,000 vendors at the site.

Jinja municipal council risks losing billions of shillings in compensation to an Egyptian firm Africans Development Incorporation following a failure to relocate vendors from Masese landing site

The firm was granted a lease in 2003 to operate properties which include a foundry workshop, the beach, the landing site and a fish market in Masese. The project will also assemble boats and ships to transport people and cargo to Kisumu and Mwanza on Lake Victoria.

Its operations are however hampered by the existence of over 5,000 vendors at the site.

Although the investor forcefully attempted to evict them in 2004, the move was halted pending the identification of an alternative site. The site was eventually identified covering plots 96-112 and 116 Walukuba Road.  But Jinja Municipal Council failed to honor a commitment to construct toilets and fish slabs at the new site before relocations could be effected.

As a result, the vendors remain squeezed on the old site and the 4.5 acre piece of land covering plots M1, MA and 1B at Masese has never been handed over to the lessee.

Joel Omara, Manager African Development Incorporation, says the firm has lost over UGX 400 Billion because all its activities have remained grounded over the last ten years.  He accuses Jinja municipal council of illegally collecting taxes from the site yet at the same time claiming that it does not have resources to facilitate the relocation of vendors.
 
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David Kyasanku, the Jinja municipality town clerk maintains that the municipality has never received funds for construction of toilets and fish slabs at the new landing site in Masese from central government.

According records at Walukuba / Masese division Masese landing site makes between 60 to 70 Million shillings from taxes levied.