Uganda News

Buganda receives Shs9 billion in rent arrears from the government.

The government has paid Buganda Kingdom Shs9 billion in rent arrears accumulated over the years.

Mr Charles Peter Mayiga, the Katikkiro, has reminded the central government of an outstanding Shs215.8 billion debt.
The rent arrears relate to kingdom buildings and land that the Buganda Kingdom received in 2013.

Some government departments that occupy the reclaimed assets have failed to pay their rent.

Mr Waggwa Nsibirwa, the kingdom Finance Minister, said that the money had been paid when speaking to the Buganda finance sub-committee on the performance report of the financial budget 2021/2022.

“We acknowledge that the central government was able to pay Shs9 billion as part of the massive debt of Shs121 billion in rental arrears this financial year, despite the fact that the overall debt is half a trillion,” Mr Nsibirwa added.

He went on to say that the Shs9b was paid in stages, with the first in July and the balance in October of last year.

When contacted, Mr Jim Mugunga, a spokesperson for the Ministry of Finance, claimed he was unaware of the exact amount the government owes Buganda Kingdom.

“Whenever releases are made in accordance with policy standards, the ministry would expect user agencies that utilize such facilities [owned by Mengo] and any other to efficiently budget and pay for use,” he said.

“As a matter of policy,” Mr Mugunga continued, “the Permanent Secretary/Secretary to Treasury has in the past directed agencies in contracting for supplies and services, including leasing space, after obtaining required resource confirmation.”

“However, claims of a large sum would not be surprising given that numerous properties from the monarchy were taken over back in the day before the NRM administration assumed power,” he said.
Mr Mugunga claims that the long-term impact of nonpayment and the rates imposed is real.

“Some properties were also returned, which is a reality.” A reconciliation process may be required in such circumstances,” he stated.
Meanwhile, Shsb2b reported an increase in revenue collection in Buganda Kingdom.

The monarchy had budgeted Shs121 billion but only spent Shs123 billion.
Mr Nsibirwa said that the increase in revenue was due to Kabaka’s people’ strong support for kingdom operations when he presented the report on predictions for the next 2022/2023 budget.

President Museveni and Kabaka Ronald Muwenda Mutebi have held several meetings, with the main focus on the full return and repossession of kingdom properties, as well as the payment of rental arrears accumulated by the government since the 1966 crisis, which resulted from a feud between then-Kabaka Edward Muteesa II and then-President Milton Obote.

26 security agencies, the Judiciary, the Ministry of Internal Affairs, 75 prisons, 80 learning institutions, and 78 health centers are among the government institutions with rent arrears.

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