Published on 04/08/2025
Parliamentary Committee on Commissions, Statutory Authorities, and State Enterprises (COSASE) has sharply criticized the Kampala Capital City Authority (KCCA) for its failure to clear a UGX 10.15 billion debt owed to the National Outdoor Advertising and Contractors Association Limited (NOAC).
The debt, stemming from a 2022 High Court ruling, has escalated due to accruing interest, prompting intense scrutiny during a COSASE meeting with KCCA officials on August 1, 2025, as part of the review of the Auditor General’s report for the 2024/25 financial year.
In April 2022, the High Court ordered KCCA to pay NOAC members UGX 8.228 billion in decretal sums and UGX 2.653 billion in taxes for illegally collected advertising fees. Despite KCCA disbursing UGX 5.5 billion in the first quarter of the last financial year, the outstanding balance has ballooned to UGX 10.15 billion as of July 21, 2025, due to interest.
COSASE accused KCCA of negligence and weak enforcement of legal mandates, expressing frustration over the Authority’s inaction. “We allocated UGX 6.5 billion, and you paid UGX 5.5 billion. We warned you about this issue,” a committee member remarked. “The Lord Mayor raised concerns about the lack of regulations and an accountable survey. Has KCCA established a proper legal framework to prevent this from recurring?”
Kampala Lord Mayor Erias Lukwago attributed the crisis to a former accounting officer who oversaw illegal fee collections without a regulatory framework. “This mess originated from unauthorized actions that have haunted us since,” Lukwago told COSASE.
“Why should taxpayers shoulder a UGX 10.15 billion burden while that responsible face no consequences? Parliament must investigate whether this was incompetence, collusion, or fraud.”
Lukwago revealed that KCCA’s executive had recommended an out-of-court settlement to curb escalating costs, but the advice was ignored. “We urged management to negotiate a lower amount, but no action was taken. Now, taxpayers face an unfair UGX 10.15 billion demand,” he said.
