Govt clips landlords’ wings in new Busuulu regulations

The government has authorised the establishment of a centralised bank account for tenants to deposit ground rent, known as Busuulu, particularly for absentee landlords or those refusing to accept payments.

In an August 1 letter from the Accountant General’s office, Ms Jennifer Muhuruzi Bigirwa instructed the Permanent Secretary of the Ministry of Lands, Housing, and Urban Development (MLHUD) to seek authority to open a BBS Busuulu holding account in the Bank of Uganda.

“Therefore, the purpose of this letter is twofold; To guide that you specifically write seeking authority to open an account and provide the required details for opening a BBS busuulu holding account in Bank of Uganda for receiving the remittances from URA (Uganda Revenue Authority) for the absentee/rejecting landlords,” Ms Bigirwa’s letter reads in part.

Busuulu is a fee paid by tenants to landlords for staying on their land. Due to numerous evictions for non-payment, the government set standardised ground rent rates in 1995. 

These annual rates do not consider the land size or location value, leading to dissatisfaction among landlords who view the rates as too low. 

Many landlords rejected it and chose to sell off their land or to evict the tenants if they didn’t pay higher rates.

On June 9, during the Heroes’ Day celebrations in Mpenja Sub-county, Gomba District, President Museveni ordered landlords to stop evicting tenants due to non-payment of ground rent. 
“The landlords who have been charging more than the agreed busuulu fees by the district must return it back, and if they try to evict our people, we shall arrest them. You must pay back all the money you have taken from these people and the evictions are illegal,” Mr Museveni said. 

The President also directed the creation of an account for rejected rent deposits to protect tenants.
Gomba District chairperson Geoffrey Kiviiri welcomed the new reforms, saying they would safeguard tenants from wrongful evictions.

“If you have an account and tenants pay there and get receipts, it will help them when the landlords go to court claiming that they were not paid. The tenants will provide evidence that they paid in the government account because the landlords rejected the ground rent,” Mr Kiviiri said. 

Following President Museveni’s directive, the Permanent Secretary of MLHUD wrote to the Accountant General on June 28, to initiate the legal framework. The Accountant General recommended opening a collection account for rejected Busuulu through URA, which will handle the remittances. URA will create a specific code for these collections to facilitate remittance and reconciliation.

“They should first ensure that complete documentation is held by the tenant and authenticated by the relevant authorities from the village level up to the district level through the district land boards and chief administrative officers,” the Accountant General said.

The Accountant General said the Ministry of Lands will reconcile the deposits before paying the landlords. 

“All the payments to the absentee/rejecting landlords across the country should then be effected from this account in (Bank of Uganda) which will be controlled and managed by the MLHUD given that the ministry has the mandate of registration and management of land,” the Accountant General said. 

President Museveni has been a strong advocate for land reform, criticizing historical agreements that transferred land ownership from peasants to those connected with colonial powers. He believes these laws have left many in Buganda region landless or as tenants on their ancestral lands, causing significant social issues.

In 2019, Mr Museveni suggested depositing rejected ground rent at sub-county offices. However, the Accountant General advised against multiple local government accounts due to potential misuse, recommending a single bank account as per new government standards.