According to Andema, KCCA assessors are already working on the property rate register for Nakawa division. He says the register will be ready by August and valuation court will reconvene either in October or November to listen to objections that will arise from it.
A section of building in Kampala
Kampala Capital City Authority (KCCA) expects to generate Shilling 19bn from property rates from the Central Division this financial year following the completion of the valuation court hearings of complaints that arose from the property assessment.
The three member valuation court is chaired by city lawyer Asumani Basalirwa. The valuation court heard over 700 complaints arising from property rate assessments in Central Division in June. There are over 1500 properties in Central Division.
Fred Andema, the Acting KCCA Revenue Director, says the valuation court completed its work on time and submitted its report. He says the new rates will come into force on July 1st. Andema says the Valuation court adjusted some of the property rates depending on the evidence provided by landlords but most rates set by Kampala Capital City Authority in the draft assessment list were not changed.
"The net rate that was determined for the Central Division property rate is about Shilling 19bn. We will not collect property rate estimated at Shillings 1.4bn from buildings, which are occupied by their owners because they are not supposed to pay," Andema told Uganda Radio Network.
According to Andema, KCCA assessors are already working on the property rate register for Nakawa division. He says the register will be ready by August and valuation court will reconvene either in October or November to listen to objections that will arise from it. KCCA's plan is to set new property rates for the five divisions that make up Kampala by the start of the 2018/19 financial year.
How property rate is determined.
Property rate is 6 percent of the ratable value of a property as guided Kampala Capital City Authority Act 2010 and the Local Government (Rating) Act 2005. The ratable value of a property is 76 percent of the annual revenue that a building owner collects from tenants. The remaining 24 percent is left for the owner to cater for utility bills and renovation.