RENT WARS IN KAMPALA: Court Fines KACITA UGX200 Million

Posted by: Kyeyune Andrew Jonathan in Business August 3, 2021

The Crane Management Services Ltd has filed a bill of more than UGX215 million against KACITA as compensation for legal costs.

These costs were incurred during the defense of the case against KACITA Uganda Ltd.

The bill followed dismissal for want of prosecution of the suit in which Kampala City Traders Association sought to stop landlords from collecting rent.

This rent intensified during the first lockdown from March 2020 when all arcades were closed.

In April 2021, the High Court dismissed the case. It cited the failure of the traders’ association (KACITA) to prosecute their case. The court also ordered them to pay legal costs incurred by Crane Management Services and the other 16 accused parties.

Some of the other accused parties include Ntake Bakery Limited, Apple Properties Limited, and Godfrey Kyeswa, Aponye Houses Limited among others.

KACITA Uganda Limited claiming to represent 38 of its members, had sued 17 landlords.

They were sued on orders to stop them from paying rent arrears for three months of March, April, and May of 2020. This is the time during which the business community was under lockdown.

On May 7, 2020, KACITA also petitioned the National task force for the fight against Coronavirus in the Office of the Prime Minister.

He sought intervention to convince the landlords to waive the rent arrears. This is because the traders did not work due to lockdown.

Crane Management Services Limited is under the proprietorship of Dr. Sudhir Ruparelia. He is also, a member of Kacita but he did not authorize, consent to, and or approved the institution of the case against landlords.

Court documents show that notwithstanding the closure of shops and prohibition against the sale of non-food items by the government; it continued to pay its taxes and bills.

These include water, electricity, bank loan facilities, and security for the malls and arcades.

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