KCCA sued by Owino Market for alleged breach of contract

By Ruth Anderah.

Kampala Capital City Authority has been dragged to High Court in Kampala for alleged breach of a Shs 4.2b contract in connection with leasing out St Balikuddembe market stalls.

The suit has been filed by St Balikkudembe Market Stalls Space and Lock-up Ltd.

The petitioners state that on February 19th 2010, a consent judgment was entered into among others between them and KCCA, with the latter committing to leas to them land comprised in St Balikuddembe market [Owino market].

Its alleged that under the said offer the plaintiff was required to pay to the defendant a premium of Shs 4 billion payable in advance and in one lump sum and further an amount of 2 billion shillings as ground rent per annum also payable one year in advance, making a total of Shs 4.2 billion which they duly paid on March 29, 2010.

Court documents indicate that the defendant issued a public notice dated March 1st 2010 further representing to the general public and all stakeholders that it had indeed granted a sublease of the market to the plaintiff company.

But surprisingly when the plaintiffs came to the processing of the lease or sublease for which it had received full payment, the defendant then claimed that it did not have any land to lease or sublease and was therefore unable to implement its obligations.