Proposal: Correct Kampala’s Natural Segregation
Based Asian Building Dollar Paged Rental Charges


 

Background:

In Kampala City, commercial premises rental charges are pegged between US 10 
and US 28,9 dollars per square meter.  It’s an equivalent of Shs 18’500/- and 
Shs 53’465/- per square meter. The figures given above are exclusive of value 
added tax of 18% and the so-called utility (electricity, water) fees that range 
between 5% and 15% of total rental charges of the premises space. 

The charges are irrespective of location of commercial premises and Asians own 
majority buildings. 

Any sort of rentable commercial premises, putting into consideration human 
needs for adequate space and ergonomic requirements will be not less than 20 
square meters (6 sq feet).   If that were the pre-condition, for all rented 
commercial and office space in all Uganda’s urban centres, then for every 
Uganda business person, it will cost him or her between Shs 370’000 (US 200 $) 
and Shs 1’069’300 (US 578 $) every month in regard to ruling rental charges. 

The charges are paid in dollars for all buildings owned by Uganda Asians.

In essence, those are the charges paid for office space whether down town or in 
high profiles locations of the city. Unfortunately, majority Uganda Africans 
have no ability whatsoever, to foot such rental charges every month.

Integrated Development Research and Consultancy (IDR&C – WWW.IDRCONSULTING.COM) 
in course of its duties, discovered recently, a good majority of Uganda 
Africans irrespective of their business, cultural, economic and social status 
were located in basically dilapidated and squalid environments i.e. areas 
around Nakivubo stadium. An area referred to as Kampala business district, 
filled with mud, dirty storm and sewerage water, congestion, filthy and highly 
polluted William, Johnstone, Luwum, Burton, Nakivubo place, Entebbe, Nakasero, 
Nkrumah and Ben Kiwanuka Streets. 

It had been established; Uganda Africans are vacating all prime land and 
property now taken over by foreigners (Arabs, Asians) and being squeezed into 
one city corner. For IDR&C, the conditions that are prevailing and generating 
such conditions in Kampala City were not readily understood then. We set 
ourselves to investigate the circumstance and reasons that have generated such 
society structuring. 

Among our study were the following;

a.      The Social Structure of Property ownership in Kampala City
b.      Rental charges per square meter of commercial office space
c.      Mode of payment like in what currency
d.      Social clustering in given areas of Kampala city
e.      Utility and amenity provisions in respective studied areas
f.      Urban and social planning differences and similarities
g.      Slumisation and ghettorisation of Kampala and its causes   

Sample studies done in Jinja and Mbarara reflect similar problems. Other towns, 
which had originally Asian property ownership, might be facing the same 
difficulties as Kampala since they have similar structural and organisational 
patterns.

Segregation:

As we write now; Bombo, Kampala-Jinja roads are boundaries demarcating “Native” 
Ugandans Kampala from Asians and Arabs Kampala. The Asians and Arabs have taken 
over the entire upper part of Bombo, Kampala-Jinja roads. They buy or lease off 
buildings and raise rental charges and Africans are thrown into the streets.

The method used is very simple; Uganda business people can’t afford to pay 
dollar-pegged rental charges, since their earnings are very modest. When the 
dollar appreciates the business space for buildings owned by Asians 
automatically goes up. Resources starved Ugandans are therefore, relegated to 
filthy and dirty environs around the old taxi park were, they are now finding 
solace.

As a result, Uganda African business acumen has been confined and discouraged 
naturally. Young upcoming business Uganda Africans have got no chance to join 
the modern business world into such environment not because of lack of ability, 
talent and will.

Unfortunately nothing has been done to assist, resource starved Ugandans, with 
commercial and residential housing facility into predominately African 
enclaves. Further still, provisions for proper urban planning that brings about 
necessities for essential utilities and amenities, is totally lacking in all 
our urban centres. 

As result, areas from the old taxi park; west, south and northwards are 
speedily becoming a mixture of typical slum areas and when upgraded revert to 
typical ghettoes with a mismatch of high rise buildings, erected in the most 
disastrous manner. 

Reasons for the above development in our study, reveals that where the 
government has erred by not guiding and providing provisions namely; financial 
support to urban planning authority, guiding physical planning, placement of 
public utilities, schools and health care centres inclusive, Uganda Africans 
have collapsed back into what they basically conceptualise as organised 
planning. It is the sole reason Uganda is basically a large slum.

Nakasero fate:

Nakasero hill as many other prime land in the city was degazzated from a 
residential to commercial area against the protestation of professional and 
expert advice. 
Kampala City Council technical personnel, it is alleged, had proposed a 
grounded study of Nakasero environment plus its suitability for commercial 
schemes. Our source confided that a technical report was written but outright 
rejected by those who thought of benefiting from the bounty by change of use of 
Nakasero hill.  

Nakasero hill can accommodate much more buildings, if for example residential 
were remodelled to commercial facilities. However it requires grounded 
scientific studies, first to absorb the amount of buildings suitable for its 
relief and futures. Nakasero is hilly.

Nakasero as any other part of Kampala lack proper drainage, water and sewer 
facilities, clear road network, utilities and amenities for proper human 
habitation. Changing it to commercial use, will therefore strain the already 
precarious situation the area was suffering from, after years of neglect.

Notice too that what happens at Nakasero Hill affects the conditions down town. 
Indeed too much storm water is ending up where more Africans are located that 
is the areas around the old taxi park. Location of more hotels into the area 
has meant Nakasero is becoming the red light district of Kampala city. Hence 
more adventures foreigners are seeking out Nakasero as their exclusive hide 
out. Future prospects for Nakasero hills are grime.

Current situation shows that once exclusive, bungalows have been turned into 
restaurants, clubhouses and other commercial facilities against the ruling 
building regulation and urban laws. Indeed, changes made arbitrarily in plan 
areas i.e. Nakasero hill endanger the very population, the system is intending 
to help out of sheer helplessness.

For instance buildings, which were designed as residential facilities becoming 
hotels and restaurants without proper modification i.e. ventilation system, 
proper toilet facilities (most have sceptic tanks) and not connected to major 
sewer lines contravenes public health laws.

The consequences are very clear, one of them being, surface and underground 
water pollution, social segregation, social classing – reminiscent of the 
colonial years where Nakasero was exclusively designated for European 
residences, is again an emerging pattern.
 
Intensification of poverty

Poverty takes on many forms, one being poverty of knowledge. Naturally, people 
learn form each other, their social and natural environment. It will be noted 
that many buildings of high-class value are coming up exclusively around the 
crested towers creating a restricted isolated zone, of high class Ugandans from 
their fellow low status citizens.

Where the above conditions obtains, besides segregation, there is a clear 
sociological pattern emerging – poverty of knowledge reflected in building 
design and patterns. Notably, Uganda Africans in their rudimentary efforts, are 
settings up their own buildings in Nakivubo area. 

Proper building designs are exclusively designated in particular areas of 
Kampala while Africans are being starved off knowledge in modern environmental 
and building design. Buildings have a life and a human face, for they serve 
human needs and wants.

It is therefore imprudent, for the state of affairs to be allowed to arise in 
Kampala City for the consequences, even though could be envisioned; the social 
reaction might be totally unpredictable.

Already, from Ben Kiwanuka Street near Bombo Road (Grand Imperial Hotel), 
upwards Nakasero hill all the way to Hotel African there has developed a hotel 
corridor. Exactly in the same manner as Kansanga up Muyenga hill is reverting 
to typical African drink joints and third world guesthouse chain facilities 
laced with shacks, churches and third world schools, less of the most basic 
modern utilities. 

The sociology of criminality will not allow such a development, for it implies 
certain behavioural patterns will emerge around those very areas that will in 
the end cost huge amounts of money to rectify in the future. 

In fact, petty criminality is basically to be found in such areas going news 
reporting on policing activities.

Had planning been the modus operandi, there would have been spatial spread of 
activities and buildings, from the above mentioned areas to mitigate 
concentration of negative effects such as rudimentary placement of hotels, bars 
and guest houses the present state of affairs occasions.  

In a sentence, there are two worlds, far apart emerging – one typical of the 
very rich Asians and their African subordinates and one for the lowly of our 
society the typical African Ugandan –the natives. These worlds are far too 
apart to feed each other to generate new experiences and knowledge – hence the 
poverty of knowledge. 

Ownership of Kampala City

It is apparently clear that many buildings in Kampala were setup by Uganda 
Asian under conditions that favoured them against Ugandans of African up 
bringing. Such conditions were based on systematic segregation, its 
consequences are clearly known and well documented.

The one who own the numerous buildings, own Kampala City. The economic wealth 
and power brought about by such enormous wealth can therefore compromise an 
state institution and urban planning authorities that can only look on 
helplessly as the executive dishes out more of the city to thugs and 
lawbreakers.

In a period of forty years, since this nation got independence, not more than 
ten buildings have been erected whether for public or for commercial use. Where 
the circumstances have been on the positive – buildings are donations to the 
government of Uganda by foreign governments. 

No wonder, the taxpayer established and funded Nation Housing Construction 
Corporation (NHCC) went to paying war debts this government owes to the 
Libyans!   

When Asian properties were repossessed, no clear urban policy were put in place 
to rectify embedded problems that generated resentment against Uganda Asian 
subsequently leading to successive Uganda governments, formulating policies, 
which where implemented in 1970s leading to Uganda Asians expulsion.  

Our study shows that many buildings in Kampala are actually owned by Asians, 
some resident others non-residents. The leading owner is Crane Management 
Services Ltd followed by Property Services located at Crane chambers and Garden 
City respectively. Many such buildings hardly have meaningful African Uganda 
businesses. All of them are gradually being abandoned and vacated by African 
Uganda businesses, under the wait of dollar paged rate charges.  

As if Ugandans have not learnt from history, exactly the same mistakes of the 
past are emerging whereby majority Uganda Africans are being driven to the 
urban periphery. Major focal points in the city are once again becoming 
exclusive preserve of Asians, Arabs and other foreigners who are financially 
well endowered.
 
Responsibility, squarely lies with the government that has neglected African 
Ugandans to such an extent that public buildings like the former Uganda 
Commercial Banks now Cham Towers, have been sold once again to Asians where 
Africans could have so easily set-up major commercial offices under a public 
–private partnership.

Secondly government policy has been hostile to its own people, the natives i.e. 
Uganda house is starved of business, a majestic building that once housed the 
Ministry of Planning and Economic Development ministry, for merely political 
reasons. On the other side crane building that was built against proper 
building regulations was offered to house the Ministry of Justice institutions 
offices for years! 

Thirdly, the government of Uganda instead of propping up the Nation Housing 
Construction Corporation (NHCC), it instead exchanged it for war debts, a 
company that would be in business to help the “natives” African Ugandans in the 
construction of both residential and commercial business premises necessary in 
the fight against poverty of all forms.

Nation Housing Construction Corporation would in fact be working hand in and 
with urban planning authority. This government is its primitive manner of 
accumulating wealth went on a begging tour in China and America to solicit fund 
to start private building agencies!

Fourthly the government has deliberately run down all urban planning 
authorities including Kampala City council. KCC has no ability what so ever to; 
manage, design, remodel and later plan an increasingly congested city.

Planning in Kampala City, has therefore been left at the desecration of the 
state house at Nakasero and respective Asian and Arab investors helped with 
Uganda investment authority. It is preciously for this reason Mukwano build a 
factory in a wetland; the crane group of companies can break national laws and 
build in a wetland at the same time releasing sewerage in communities in Bukoto

Fifthly this government is above the laws it legislates and breaks them too. 
Interesting no native will break a law and go free as compared to the moneyed 
class of Asians. 

Sixthly Uganda government has neglected and turned a blind eye to potential 
Natives in Uganda with potential business acumen. This group is not given legal 
support in matters of planning and designing of business environment.

For that matter intensification of corruption has been away of beating the 
status quo hence couldn’t be avoided, as potential native businessmen and women 
have to find away through a family like state government institutions. 

Conclusion:

The situation had never been worse. The British regimes made sure that they 
made the native in Uganda taste the goodies of a modern world. They set up 
commercial and public facilities in their efforts to civilise the native this 
government has completely abandoned.

The natives are enraged, the ecological, social and economic will be terrible 
when rage turns into helplessness. As I write the natives are in a more 
desperate situation and point of no return. 



Prepared By Bwanika Daniel
Intergrated Development Research & Consultancy
P.O. Box 12413 Kampala
Uganda.

e-mail: [EMAIL PROTECTED] 
Phone: +256 (0) 752 972 960 
uhl: www.idrconsulting.com




Bwanika 
________

http://www.idrconsulting.com

--> for your consultancy needs



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