The Monitor (Kampala)

Uganda: IGG Orders Inquiry Into Planned Owino Market Redevelopment

Joseph Miti& Al-Mahdi Ssenkabirwa

9 May 2008


The much anticipated redevelopment of St. Balikuddembe Market commonly known as Owino may have to wait following an order from the Inspector General of Government's office for an inquiry into the project.

In a letter dated April 3, the IGG's office asked Kampala City Council to investigate allegations that a group of people led by Mr Godfrey Kayongo, the Owino Market chairman, was dubiously collecting money from vendors to redevelop the market.

According to the letter a copy of which Daily Monitor has seen the IGG's office had received complaints alleging that the vendors currently operating in the market have been threatened with losing the first lease offer once they do not pay Shs1 million each by June 30 this year.

"The purpose of this letter, therefore, is to inform you and ask you to inquire into this matter with a view of taking appropriate action," the letter signed by Mr James Penywii, director of operation in IGG's office reads in part.

The development follows complaints filed by a fraction of vendors, under their umbrella organisation St Balikudembe Market (Owino) Vendors and Shop Owners' Organisation, questioning the authorisation of the proposed project.

The vendors led by Mr John Bosco Kivumbi petitioned the IGG 's office on February 26 to intervene in what they described as illegal collection of money from vendors under the pretext of raising premium and ground rent if the market is offered to them.

Mr Kavuma told Daily Monitor on Wednesday that after being notified to pay Shs1 million each they wrote to KCC to find out whether it had sanctioned the project but no response has been communicated yet.

"We have tried to establish whether there is any official communication from KCC in regard to the proposed project but we have not received any response," he said.

The vendors claim that Mr Kayongo and group did not consult them when initiating the project.

The downtown market located on plot 24B Kafumbe Mukasa Road, is one of the oldest markets in the city. It has 6320 stalls and employees at least 50,000 people dealing in various low priced merchandises including second hand clothes, shoes and farm products.

When contacted, Mr Kayongo said their project was transparent and KCC was aware about the programme.

"Our drive is transparent and was endorsed by all willing vendors. Our target is to ensure that by the time KCC advertise the redevelopment of the market we are financially capable and in position as vendors to take it up," Mr Kayongo said." We want to avoid being caught off guard as it has been the case in other markets."

He disclosed that since the inauguration of the drive, at least 670 vendors have deposited their savings on a joint account in Dfcu bank. However, he was non-committal on how much they had so far deposited.

Each vendor is required to pay Shs1million before June, 30 to benefit from the proposed redevelopment.

"We had earlier planned to collect the required money in one year, but the period was later extended to enable more people to benefit from the project." Mr Kayongo added.

This is the second time vendors are collecting money to put up new structures. In 1990 the vendors forked out Shs40 billion from their savings to erect the existing structures. The project was partly funded by World Bank, which injected close to $4million.

Mr Kayongo said; "We want to end a widely spread perception that markets have to be in unplanned spaces. Ours is going to be a world class shopping hub with spacious shops with all varieties ranging from vegetables to garments."

Early last year, City Mayor, Hajj Nasser Sebaggala announcemed that the council had returned management of the market to vendors.

Between 2002 and 2006, Victoria International Trading Company Ltd (VITCL) was running Owino but its contract was terminated for failure to remit Shs3.4billion to the council. City businessman Hassan Basajjabalaba owns VITCL.

Mr Kayongo said the current lease on the market was soon expiring and it was high time they planned ahead. The vendors want KCC to grant them a 49-year lease to redevelop.

He said construction would not affect the vendors, as it would be done in phases and phase one is expected to commence in three years time.

"We shall do all things possible to ensure that our people are not interrupted by the construction works. We shall concentrate on one part of the market before tackling the other," Mr Kayongo said

According to the plan designed by Tek Consults, Architects, Engineers and Surveyors which Daily Monitor has seen, the complex basement floor would accommodate 100 shops and 30 stores.The ground floor will have 1000 shops and a parking for 400 cars.

The first and second floors will accommodate 550 and 350 shops respectively. The third and fourth floors will have 350shops, banks, offices, restaurants and conference halls.

Some of the vendors who talked to Daily Monitor expressed enthusiasm in their leaders plan to give the market a new face.

"It is a bright idea which we all embrace and just ask God to bless it so that it becomes a reality," Mr Moses Mutebi, a market vendor dealing in onions said.

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