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Landlords ask tenants to pay rent for April, May
No business. Shopping arcades on Luwum Street in Kampala remain closed. PHOTO BY DAVID LUBOWA
Tenants in city arcades are in pain after top landlords issued new demands that only those that have paid rent for April and May will be allowed to access their shops.
Mr John Kabanda, the chairperson of Kampala New Generation Traders Association in Uganda, said some members have received the messages from the landlords to that effect despite President Museveni’s guidance on rent payments.
Kampala New Generation Traders Association in Uganda is a group comprising tenants in the city centre.
“Mr Drake Lubega, a landlord with most of the arcades, told his tenants that they have to pay both months as soon as the lockdown is lifted before accessing the building. He has also published bank accounts on his buildings, like Tesco Plaza, on which the tenants must deposit the money,” Mr Kabanda said yesterday.
Mr Lubega earlier this week said he could not forego the man.
The landlords last week told Daily Monitor that they would not forego the rent arrears during the lockdown. They said they too have loans to service.
The city has been under lockdown since April 1 when government put in place measures to stop the spread of coronavirus.
President Museveni said landlords should not put their tenants on pressure to pay rent during such a time. He urged the landlords to reschedule the payments or forego the rent.
Mr Kabanda said the landlords should forego rent during these period when the city is in a lockdown.
“President Museveni should help us talk to the landlords to forego the rent in the period of the lockdown. Even rescheduling the rent will not be feasible because even months ahead, business will be slow since clients have not been having money,” he said.
Tenant speaks out
Mr Denis Matovu, a member of Kampala New Generation Traders Association in Uganda, said tenants have been paying above Shs4m a month for a shop and rescheduling rent during the lockdown would push the monthly payments to more than Shs5m.
“Tenants have been struggling to pay Shs4m for rent. You have been hearing of strikes when landlords have increased rent by just 10 per cent. Will they be able to pay Shs5m a month in this situation where all their stock is still held up in foreign countries?” Mr Matovu wondered.
He said some landlords are still demanding money for utilities such as power, security and water yet the shops have been closed since April.
“If the landlords refuse to forego the rent arrears, we are going to expose how they evade taxes. We shall share with government the rent receipts they give us and the actual amount we pay,” he said.
Mr Matovu alleged that some shop owners demand Shs3m for rent but tenants get receipts indicating Shs500,000. It is on these receipts that landlords share with URA and Kampala Capital City Authority to determine income tax and ground rent.
