Parliament defers debate on landlord-tenant bill

Kampala, Uganda | THE INDEPENDENT | Parliament has deferred debate on the Landlord and Tenant Bill following controversy on a provision that requires that all rent obligations be recorded and settled in Uganda Shillings.

The clause had been supported by Kampala Central MP Muhammad Nsereko who observed a need to protect tenants from paying rent in foreign currency due to fluctuations in foreign exchange.  Nsereko’s argument was based on numerous petitions by Kampala City Traders Association (KACITA) and tenants in the city who want all rent transactions made in Shillings.

His argument was supported by Army MP Brigadier Felix Kulayigye, Kyankwanzi woman MP Anne Maria Nankabirwa and Kawempe North MP Latiff Ssebaggala all stating that tenants need to be protected from volatile foreign exchange rates. They added that allowing the foreign currency to dominate the market tantamount to a vote of no confidence in the local currency.

But a cross-section of MP’s led by the Nakifuma County MP Robert Ssekitoleko opposed the provision on grounds that Uganda is a liberalized economy and therefore, market forces of demand and supply should be left to work.

Ssekitoleko recommended that a new provision is inserted in the bill to allow parties to mutually agree on settling rent obligations in any convertible currency.

Lands Minister, Betty Amongi argued that much as the Bank of Uganda Act provides for transactions in other currencies, the government wants a provision that restricts payments to the local currency in order to protect tenants from landlords who collectively agree to charge in US Dollars.

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