KCCA loses UGX 151.7M property rates case against Twed Towers

KCCA loses a sh151.7M property rates case against Twed Towers. A judge ruled KCCA’s claim was past the statute of limitations, enforcing a prior road works offset.

KAMPALA, Uganda — The Kampala Capital City Authority (KCCA) has lost a court case seeking payment of sh151.7 million in outstanding property rates from the developer of Twed Towers.

Commercial Court Justice Patience Rubagumya ruled Sept. 23 that the property developer, Twed Towers Development Limited, was only liable to pay sh43 million. She directed KCCA to offset sh108.7 million from the original claim.

The ruling centered on a waiver granted to the developer for its contribution toward road works on a portion of Nakasero lane. The judge found that the developer was entitled to the offset because of a 2007 agreement with KCCA’s predecessor, Kampala City Council (KCC), and the issuance of a certificate of completion for the works.

However, KCCA’s claim for the full amount was partially denied because the authority attempted to apply an outdated 2009 property valuation.

“Since KCCA did not exercise its right to recover the 2009 property rates within the prescribed period, it would be illegal to claim the said rates in 2024, after the expiry of the limitation period,” Rubagumya wrote.

The judge cited Section 29(2) of the Local Governments (Rating) Act, which mandates that any legal action to recover outstanding property rates must be initiated within six years from the date the rate becomes payable.

Dan Twebaze is the managing director of Twed Towers. KCCA was represented by lawyer Jones Ahabwe, while Yese Mugenyi represented Twed Towers