UGANDA, Jinja | Real Muloodi News | Jinja City Council is struggling with managing Asian buildings, as unclear ownership and tax evasion contribute to an annual revenue loss of approximately USh5.3 billion. The council reports that these losses stem from uncollected property tax, ground rent, and rental income tax.
Jinja is home to numerous structures built in the 1920s, many of which have remained in disrepair. Following the 1972 expulsion of Asians by then-President Idi Amin, the Departed Asian Property Custodian Board (DAPCB) was established to manage these properties. However, ownership disputes and a lack of investment have left many buildings in a deteriorated condition.
Jinja City Council Speaker Bernard Mbayo stated that the failure to collect taxes from Asian buildings has significantly affected service delivery.
“The failure to collect USh5.3 billion annually from these properties has had a direct impact on city operations,” Mbayo said.
He noted that efforts to redevelop the buildings have been hindered by ownership conflicts.
“Some buildings have been allocated to multiple individuals, and the matters are currently in court. We are awaiting the court’s ruling,” he added.
To address the issue, the city council has begun advertising some properties to initiate tax collection.
“We are calling upon individuals claiming ownership to verify their documents with the city land board,” Mbayo said. “Only tenants with verified documents under their names are legally recognised by the council.”
Unresolved Ownership Issues
Attempts to obtain a response from DAPCB were unsuccessful. However, some city officials, speaking anonymously, stated that Jinja has lost trillions in revenue over the years due to absentee landlords and unclear property ownership under DAPCB.
Benjamin Isabirye, the former chairman of the Area Land Committee for the defunct Jinja Central Division, explained that after the expulsion of Asians in 1973, most properties were nationalised and allocated to government institutions such as hospitals, schools, police, prisons, and the military.
Isabirye suggested that the government should take permanent action regarding the fate of these buildings to improve the city’s revenue collection.
Deteriorating Structures and Tax Evasion
In 2006, Jinja City Council condemned 123 buildings due to their deteriorating conditions. However, many remain standing as owners lack the financial resources to renovate or demolish them.
Nasser Ashiraf, the mayor of Jinja North Division, where most of the Asian buildings are located, confirmed that DAPCB has not been paying property taxes or ground rent despite collecting rent from tenants.
“Tenants are paying rent to DAPCB, but Jinja City Council has not received property tax or ground rent from these buildings since 1979,” Ashiraf said.
He added that the government needs to clarify its position on these buildings to support the city’s infrastructure development.
Juma Ssozi, Jinja City Council’s secretary for Works, stated that unclear ownership is hindering the implementation of the city’s physical development plan.
“It is time for stakeholders to take action and replace these old structures with modern developments,” Ssozi said.
He called on DAPCB to collaborate with the city council to facilitate property development and revenue generation.
“Property owners who cannot meet the new development standards should consider selling to potential developers,” he added.
Impact on Urban Development
The city’s physical development plan requires commercial areas to have four-story buildings. However, many Asian buildings are single-story bungalows that do not align with the plan. This has led to further revenue losses, according to city officials.
The most condemned buildings are along Lubas, Oboja, Spire, Gabula, Kirinya, Nadiope, Circular Roads, and Madhvani Road. Many structures have cracked walls, rusting metalwork, and visibly deteriorating facades.
Despite calls for redevelopment, some historical buildings in Jinja are being preserved due to their colonial-era significance and tourism value. This has led to an ongoing debate between preserving the city’s historical character and modernising infrastructure.
One example is the Crested Crane Hotel, a colonial-era building that previously served as the Uganda Hotel and Tourism Training Institute. The building has since been demolished as part of a broader effort to align with current urban development plans.
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