KCCA Councilors Choke on Huge Loans

1942 Views Kampala, Uganda

In short
In November 2011, KCCA recommended each of the city councilors to receive a bank loan to the tune of 100 million shillings each over their five year term.

Councilors under the Kampala Capital City Authority-KCCA are choking on the huge loans they accessed from private banks at the start of their term. KCCA has more than 200 councilors drawn from Kawempe, Makindye, Rubaga, Nakawa and the central divisions.In November 2011, KCCA recommended each of the city councilors to receive a bank loan to the tune of 100 million shillings each payable over their five year termOn average a district councilor receives 4.5 million shillings and the division councilors get 2.7 million shillings monthly.  Several councilors received loans through Cairo, DFCU and Centenary Bank. Now, it is emerging that the councilors are choking on the bank loan.

John Muwanguzi, a beneficiary of loan scheme says many of them have decided to keep a low profile until they complete servicing their loans. Muwanguzi, who received 80 million shillings, says that the majority of councilors used the loan to buy vehicles and improve their standard of living benefiting their status. He however, explains that the councilors are finding it hard to survive on the remaining money after the bank has cut off it money to recover the loan. Hamza Kazungu, the representative of Makerere University at Kawempe division received a loan of 60 million shillings. According to Kazungu he used part of the loan to settle the debts he incurred during the elections.

// Cue in: “The time they …
Cue out: … use that money.” //

Kazungu explains that they agreed with the banks to cut 50 percent of their salaries to service the loans. Bob Mpiima, the chairperson of the LC 3 councilor’s forum says that several councilors are struggling to cope with life because of the bank loan. He explains that after cutting off the money to service the loan, the remaining money is not sufficient to support the activisties of the councilors. Mpima asked Jennifer Musisi, the KCCA executive director in a closed door meeting recently at Hotel Africana to consider increasing their allowances and salaries. Musisi allegedly promised to look into the matter in the next financial year budget.

 

Tagged with: kcca