Uganda, Kampala | Real Muloodi News | In a recent announcement on Friday, June 23, 2023, Doreen Nyanjura, Deputy Lord Mayor for Kampala, shared an update on the property rates in the city.
The Kampala Capital City Authority Council (KCCA) has approved the City Executive Committee’s proposed rates for rateable properties, bringing about significant changes that aim to benefit property owners, particularly small property owners.
The new rates will be levied under three bands based on the rateable value of properties.
Tiered Property Rates for Fairness and Affordability
Under the new regulations, property rates in Kampala will be categorised into three bands, each with its corresponding rate.
This tiered approach ensures fairness and affordability for property owners across different income levels. Here are the details of the property rate bands:
- Rate of 6%: Properties with a rateable value exceeding UGX 5 million will fall under this category. Property owners in this band will be subject to a 6% property rate. This higher rate reflects the higher value and potential income generated from these properties.
- Rate of 4%: For properties with a rateable value ranging between UGX 3 million and UGX 5 million, a property rate of 4% will be applied. This band recognises the value of these properties while offering a reduced rate compared to the higher band.
- Rate of 1%: The newly introduced band offers a significantly reduced property rate of 1% for properties with a rateable value below UGX 3 million. This lower rate is designed to support small property owners and provide relief for their businesses.
Waiving Property Rates Interest During Covid-19
In addition to the revised property rates, the Kampala Capital City Authority Council has resolved to waive the interest accrued on property rates during the Covid-19 period. This decision aims to alleviate the financial burden faced by property owners due to the economic challenges brought about by the pandemic.
By waiving the interest, property owners will have the opportunity to recover and rebuild their businesses without the additional strain of accumulated interest.
As political leaders, the hope is that the introduction of the 1% property rate band will be well received by small property owners.
This reduction in property rates can potentially be used to enhance their businesses and contribute to their financial stability.
However, it is also essential for property owners to extend the same magnanimity they receive to their tenants.
Exploitative practices towards tenants should be discouraged, and fair treatment should be extended to ensure a harmonious relationship between landlords and tenants.
These updated property rates will contribute to a thriving business environment and foster positive relationships between property owners and tenants in Kampala.
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