Category «Business»

BOU Closes National Bank of Commerce

Bank of Uganda has announced immediate takeover of the management of the National Bank of Commerce. This has been announced in a press statement issued by Dr. Louis Kasekende, the bank’s Deputy Governor. According to the statement, the bank’s license has been revoked and its customers will now operate their accounts in Crane Bank, beginning October 1st. Kasekende says the bank has also been ordered to wind up its affairs. The Central Bank in its statement warns borrowers with the bank to service their loans as per the previous terms. Though the statement does not give reason for the wind up, Kasekende says the Central Bank will remain committed to ensure the stability of the financial sector. The bank has …

Entebbe Airport moves to reduce costs

The Civil Aviation Authority has revealed plans to set up a ferry port at the shores of Lake Victoria, to transport aviation fuel in a bid to reduce the costs incurred by airlines. Currently, there is an outcry over the high cost of landing and parking at Entebbe Airport, which players say is hurting the airline business. The charges are the highest in East Africa, making Entebbe Airport one of the most expensive for business. Currently, the small aircrafts are charged $110 and big ones $320 at Entebbe Airport for every extra hour after parking for six hours compared to $10 for the small ones and $130 charged at Jomo Kenyatta International Airport in Kenya. Speaking to KFM, the CAA …

Fuel shortage downplayed

As petrol shortage continues to bite, dealers have expressed concerns over failure by government to establish national fuel reserves. Many fuel stations have run out of petrol, with the situation reported to be worse in some up country towns. In Masaka, a litre of petrol shot up from shs 3,800 to close to shs 5000, while in Kasese, a litre of petrol was by yesterday selling at close to shs 7000. Now the managing director Tapuz limited, dealers and consultants on oil, David Segal blames the continued shortages on the lack of national fuel reserves. Segal says government should have realized the importance of reserves, since it does not have a pipeline that connects to other countries. He says that …

KCCA budget finally read

The budget for the Kampala Capital City Authority for the financial year 2012/2013 has finally been presented, showing a reduction in government funding. Funding from government is to reduce from  Shs101b to Shs 86 billion. The city Executive Director Jenipher Musisi says the authority expects to raise Shs 61b in local revenues, up from the target of Shs 44.5b that was set this year. Musisi acknowledges that the target set for revenue collection is too high since the authority failed to hit its mark this year. She says new measures are being put in place to increase revenue collection including increased sensitization of the public on tax compliance. The priorities for the financial year include improving efficiency and the image …