News and Views

City Tycoon Drags KCCA to Court

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Kampala businessman Godfrey Kirumira has dragged Kampala Capital City Authority (KCCA) to court over its intention to court over its intention to cancel a sub-lease of the railway land in Kampala on ground that he acquired it illegally.

Kirumira had in 2006 obtained a 49-year sub-lease to construct a multi-storied parking project and thereafter sought for a $15m loan from an undisclosed funder.

KCCA’s director for legal affairs Micheal Okua on March 14 wrote a letter addressed to Philadelphia Trade and Industry Limited stating that the Industry Limited stating that the 14-year sub-lease of land on plots 1-3 and 2-4 station Approach in Nsambya, Kampala did not follow the procedures as provided for in Public Procurement and Disposal of Public Assets (PPDA) Act, 2003.

Kirumira, who said he had not received any communication, dragged KCCA to court where he secured an order stopping the authority from interfering with the said land.

The order that remains the force until April 11, 2012 was signed by the assistant registrar of the land division, Festo Nsenga.

In an interview, Kirumira said he had failed to secure the $15m loan to develop the project because his lenders demanded a formal sub-lease.

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