Mukono land owners in trouble with bank soans after title transfer freeze

Kampala, Uganda | THE INDEPENDENT | Frustration is brewing among property owners in Mukono Municipality as they grapple with the ramifications of an extended freeze on land title transfers. For the past two years, the ministerial zonal offices (MZO) in Mukono have imposed a sweeping halt on all land transactions within the major blocks of the central town due to concerns over dubious land dealings.

This prolonged suspension has significantly hindered property owners’ access to bank loans, exacerbating the financial strain on those dependent on the fluidity of land transactions. The affected blocks include numbers 190, 193, 107, and the later block 530, which encompasses the central business area. Property owners in Mukono are struggling to get bank loans because they can’t use their land titles as collateral. Without the ability to transfer these titles, banks see them as useless.

Wilson Muzzanganda, who owns Muzza Buildings in Mukono, says he’s now required to provide a lot of additional paperwork to secure loans. He points out that although his properties are in a prime business area, the restrictions on land transactions are making it hard for him to use them as loan security. “Our properties are located in the central business area, but it is currently affected by the restrictions on land transactions yet it is these properties we use as security in banks to secure loans,” he said.

Samuel Kasasa, who owns Unique Garments along the Kampala-Jinja Highway, was in the process of correcting mistakes made during the registration of his land title when the restrictions were imposed. He was mistakenly advised by land brokers to get a freehold title for Mailo land instead of a lease from the Buganda Land Board.

Similarly, Ronald Kyesswa faces difficulties because of an overlaid title from a neighboring developer. His title now has legal issues that are difficult to fix due to the transaction freeze, making it almost impossible to use as loan security. Stephen Ndegeya, the Senior Staff Surveyor at MZO-Mukono, acknowledges the frustration of landlords and the community. He explains that the halt in land transactions was meant to address the problems caused by fraudulent land dealings once and for all.

In Mukono, land issues like double titling, overlapping titles (where titles extend beyond their actual boundaries), unregistered leases on Mailo land, and freehold titles on Kabaka’s land are common problems. Ndegeya says they have put together a report that addresses these challenges and is now discussing it with all relevant parties to ensure smooth implementation.

The report reveals that four major blocks in Mukono have a total of 4,004 titles, categorized into public, Mailo, freehold, and leasehold. It also highlights issues like double titles, titles with missing data, and titles without associated plots. Doreen Tumushabe, Principal Assistant Secretary at MZO-Mukono, assures that efforts to correct these errors will be completed by November this year, allowing land transactions in Mukono to resume. She urges all stakeholders to assist in the process when contacted to help speed things up.

To support the process, Fatumah Ndisaba Nabitaka, the Mukono Resident District Commissioner, says her office was informed about the ongoing process intended to rectify the matter of land ownership in Mukono town. She notes that currently, they are not allowing any demolition and evictions until the ongoing process is completed by the lands office. She also requested that the lands office include blocks comprising the Namanve industrial area since it faces similar challenges.

Mukono District Chairperson, Rev. Peter Bakaluba Mukasa, is excited about the developments, saying they will help solve challenges of ownership. “As the chairperson but also as a landlord, I am so happy about this move. For your information, I have a building on plot 1, block 530, but someone also produced a second title on the same block. So if a public hearing is yet to be done, I am sure I will regain full control. I am just surprised if it happens to me, the chairperson, what about the other common people?” Rev. Bakaluba said.

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