1

21ST JULY 2014

FACTSHEET ON KEY ISSUES USAFI MARKET

Following the establishment of the Kampala Capital City

Authority (KCCA), the management noted that there existed

a big challenge in the way business was being transacted in

the City.

In the Central Business District, street vendors were a

common sight at every corner and all this was being done on

account of lack of adequate space in the markets to trade

and a desire to deliver goods closer to the customers. All this

was being done in an environment that barred unregulated

street vending.

The management of KCCA embarked on a sensitization

campaign to have the street vendors relocate to the markets.

2

KCCA identified over 8,000 (eight thousand) workspaces in

different markets and a number of vendors occupied them.

KCCA engaged in a crackdown on illegal street vending and

enforced compliance.

In its plan to create more working spaces for the vendors in

the City, KCCA purchased land in Bukoto, Kitintale and

Busega to construct markets.

As an intervention to create workspaces in the City, KCCA

engaged the proprietor of the land on which USAFI Market is

situated currently housing about 2700 vendors. Plans are

underway to procure this facility as part of the efforts to settle

more people previously operating on streets.

KCCA took into consideration the following aspects about the

market before considering it for procurement;

a) The market sits on a large single piece of land for

informal trading;

b) USAFI market has the capacity to absorb 7,000

(seven thousand) vendors directly and 10,000

indirectly and this will reduce the number of people

illegally trading on the streets of Kampala City;

3

c) The market is strategically located at the apex of

major routes and it has double frontage on Katwe

road and Mengo Hill road;

d) The availability of a gazetted taxi park which

facilitates both the vendors and market-goers;

e) A report from the Ministry of Works and Transport

indicating the viability of the market and park

f) There are several developments existent at the

market including an administration block, lock-up

shops, permanent market stands and stalls, a

butchery block, toilet block, a police post, generator

room and barbershop block among others;

We have recently received a petition initially submitted to

the Speaker of the Parliament of Uganda by small scale

traders imploring the Government of Uganda to allow

KCCA to take over the ownership and management of

USAFI Market.

Communication of the procurement decision will be made

in due course.

4

KCCA’s commitment is to develop a market in at least

every division of Kampala Capital City to enable our small

scale traders, especially the women and youth access

affordable workspaces in their immediate areas of abode.

USAFI market comprises the following;

Land size is equivalent to 5.87 acres;

Number of stalls – 3,500

Number of lock-up shops – 100

Capacity of the taxi park – 5000 taxis

Current income of UGX 6500/stall per month and

UGX 800,000/lock-up shop per month

The proprietor quoted a price (for both the market and

park) of USD.17,250,000 (United States Dollars

Seventeen Million Two Hundred Fifty Thousand)

comprising USD.15,000,000 as capital expenditure and

USD.2,250,000 as return on investment i.e. UGX.43Bn.

The Chief Government Valuer’s report indicated that the

market value of the said property is UGX.33,829,155,798

(Uganda Shillings Thirty Three Billion Eight Hundred

Twenty Nine Million One Hundred Fifty Five Thousand

Seven Hundred Ninety Eight).

5

KCCA’s position on the value is therefore based on the

valuation provided by the Chief Government Valuer. On

this basis, KCCA sought financial support from the

Government and the Ministry of Finance, Planning and

Economic Development has committed funding within

Financial Year 2014/2015 for the purchase of the said

market. KCCA is negotiating on the price with the vendor

and procurement is still ongoing.

WANDEGEYA MARKET LEADERSHIP

Interim Leadership- Wandegeya Market

The Market Act of 1950 provides that “The administration

of a district may establish and maintain markets within the

area of its jurisdiction and shall control and manage such

markets or shall vest their control and management in

such person or authority as it may deem fit”. In line with

this mandate, KCCA has established an interim leadership

in Wandegeya market to stabilize the market and handle

vendors’ issues. The committee is already working.

Election of Leaders

KCCA is mandated to conduct elections for markets and

other community entities like BMUs in her jurisdiction. The

process is very well documented. For example there must

6

be an authentic voter register comprising bonafide

vendors. Currently, the development of the vendors’ data

base is underway and the elections will be carried out in

due course.

KIIDP 11 PROJECT

KCCA obtained a World Bank Credit of USD175 million to

support infrastructure development under the KIIDP Phase

II project. The credit was approved by the World Bank

Board and is currently before parliament for approval. The

funding is earmarked for the following projects;

Category I: Projects Already at Tender Stage

a. Conversion to dual carriageway of - (1) Makerere Hill

Road, Bakuli-Kasubi Road, Kira Road including signalizing

all the junctions on these roads

b. Reconstruction of Mambule Road

c. Signalisation of Fairway and Bwaise Junctions

2 - Projects at design stage

a. Upgrading and improvement of various roads and

junctions that include; Dualing of Queens Way,

Kayemba/Katwe, Port Bell, Old Port Bell/Spring,

Nakawa Ntinda, and John Babiiha Rds

7

b. Reconstruction and upgrading of Sir Apollo Kagwa,

Sentema, Kabuusu-Kitebi-Bunamwaya, Kulambiro

Ring Road, Lukuli, Namuwongo and Kawaala rds

c. Junction improvement through remodelling and

reconstruction of 35 junctions including Hanlon-

Nsambya, Makindye Military Police, 2 junctions on

Lugogo Bypass, Kawempe-Lugoba, Ndeeba

Junction, Kabuusu, Bulange, Kabalagala among

others

d. Construction of a Traffic Control Center at KCCA

e. Drainage improvement of;

Kinawataka drainage channel,

Kansanga and Gaba Channels,

Lubigi secondary drains

f. Consultancy on updating the Kampala Drainage

Master plan which will prepare a programme for

investment in drainage infrastructure for Kampala for

the short term and long term.

THE RAILWAY RESERVE EVICTIONS AND PLANS FOR TRAIN SERVICES

8

KCCA in collaboration with RVR and Uganda Railways

plans to re-introduce passenger train services in the City

as one of the means to improve public transport and

reduce traffic congestion. The services will commence on

2 routes including Kampala-Bweyogere-Namanve and

Kampala-Nalukolongo-Natete. In preparation for these

operations, KCCA issued a 1 month notice to all those

who encroached on the railway line and its reserve to

vacate. It should be noted that this was in addition to

earlier notices issued by Uganda Railways. KCCA calls

upon all those concerned to heed the notice and vacate

before the time elapses.

BANDA TAXI TERMINAL In a bid to streamline public transport and reduce

congestion in the City, KCCA gazetted three areas as

possible sites to be developed as transport terminals in

the periphery of Kampala like Banda to the East, Bwaise

to the North, and Nateete to the West.

Access to the proposed Banda Terminal was via the

Banda Link Road which over the years was encroached

upon by members of the public way before KCCA was

established. To gain access to the site, there was need to

open up the road.

9

Although KCCA bore no obligation to compensate the

encroachers on the road since the Banda Link had been

gazetted as a public road, as a gesture of good will, the

Developer of the terminal sought and indeed

compensated those who were willing to vacate the site

and road in order to maintain social cohesion. As such a

proper valuation exercise supervised by the Chief

Government Valuer was conducted. Disbursement of

funds was made to the bank accounts of the encroachers

and they indeed started to vacate voluntarily.

The KCCA's responsibility was to open up the road which

was indeed done. However, it should be noted that it was

not KCCA compensating the encroachers but the

Developer since KCCA had no basis compensating

settlers on a dully gazetted roads or road reserve.

BODA-BODA OPERATIONS

In October last year KCCA conducted a Bodaboda

registration exercise as an initial stage in streamlining their

operations in the City following public outcry. The exercise

revealed that numerous motorcycles operating within the

city contravene Traffic laws like operating unduly

registered motorcycles, riding without third party motor

insurance and an even greater number are operated by

10

persons who are not duly licensed. Out of a total of 59,000

Bodabodas that were registered less than 50% (or 20,000)

were found to possess the minimum requirements.

Section 7 of the Kampala Capital City Act, 2010 vests in

the KCCA the function to "organise and manage traffic".

This broad mandate so far as regards Bodaboda

Operations is supplemented by the following legislations;

(i) The Traffic and Road Safety (Motorcycles)

Regulations SI No. 30 of 2004 which stipulates

among others, that;

a) a rider shall ware a crush helmet at all times

that he or she is riding a motorcycle;

b) a rider shall ware a bright or light colored

clothing at all times that he or she is riding a

motor cycle;

c) not more than one person in addition to the

rider shall be carried on any two-wheeled

motorcycle; and no person shall be so

carried otherwise than on a proper seat

securely fixed to the cycle;

11

d) a person who is being carried as a

passenger on motorcycle shall wear a crush

helmet at all times that he or she is being

carried on the motorcycle.

(ii) The Local Governments (Kampala City

Council) Maintenance of Law and Order

Ordinance of 2006 - which enjoins any person

intending to operate a Bodaboda to apply to the

city administration for a permit clearly indicating

the location where the applicant intends to

operate. In addition the Bodaboda Operator who

has been dully permitted to operate must at all

times wear a uniform approved by the City

Administration when carrying on his or her

duties.

In fulfillment of the above legal provisions and cognizant of

all stakeholders interests, KCCA has finalized the new

measures to streamline Bodaboda operations in the City

which will be unveiled to all stakeholders and the general

public in due course. The measures are expected to be

implemented within the 1st quarter of the Financial Year.

For any inquiries, please do not hesitate to contact

us on info@kccago.ug or 0794660003/0794660025

12