17 April 2018

Uganda: KCCA to Double Billboard Fees

Kampala — Kampala Capital City Authority (KCCA) has proposed to increase fees for building plans and outdoor advertising by 100 per cent.

The increment is contained in the ministerial statement for Kampala Capital City Authority (KCCA) for 2018/19, which was tabled before Parliament early this month by Kampala minister Beti Kamya.

The increment is, however, subject to Parliament's endorsement.

Initially, KCCA would charge Shs1,000 per square metre of the area to be covered by each floor of the building. This means that if the total number of square metres of a new building are 50, a developer would pay Shs50, 000.

But if the proposed rates are approved by Parliament, it means that a developer would pay Shs100,000.


In the statement, Ms Kamya justified the increment, saying the current rates must be increased to match with the current economic situation, adding that the current rates were set a decade ago.

KCCA is currently grappling with funding challenges that have stalled many city projects and the increment would improve local revenue performance.

Mr Fred Andema, the KCCA director of revenue collection, told this newspaper in a telephone interview last evening that the rates for outdoor advertising depend on the size of space, which the advertiser wants.

For instance, he said KCCA charges Shs900,000 annually for one to erect a big billboard in the city. Other small advertisements also have their own rates.

If the proposed rates are approved, Mr Andema said, advertisers will be required to pay Shs1.8m annually for big billboards.

However, Ms Doreen Nyanjura, the Makerere University female councillor, who is also the chairperson of the standing committee of revenue collection, argued that the rates were 'smuggled' into the ministerial statement without council's approval.

"We have never approved those rates as a committee and we are wondering where the minister got these proposals from. These proposals must be exhaustively discussed with all stakeholders to avoid confusion," she said.

But Mr Peter Kaujju, the KCCA director of public and corporate affairs, said the new rates were arrived at basing on the operations of the institution.

"When an opportunity for revenue shows up, we exploit it because it's this revenue that we use to offer services," he said.


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