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Nov 27th, 2024

New law sets tough rules for landlords and bibanja owners

Written By |
Lands Minister Judith Nabakooba
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By Our Reporter

A new law introducing stringent rules for paying annual nominal ground rent, locally known as busuulu, is set to take effect. The regulations mandate tenants to either pay busuulu directly to registered landowners or deposit it into a designated Bank of Uganda (BOU) account via the Uganda Revenue Authority (URA). 
The statutory instrument outlining these regulations, drafted by the Attorney General’s Chambers under Solicitor General Pius Perry Biribonwoha, has been approved by the Ministry of Lands. It specifies that the busuulu payments will follow guidelines provided by the URA with the approval of the permanent secretary of the Ministry of Lands.

In a letter dated November 15, 2024, Biribonwoha requested Lands Permanent Secretary Dorcas Okalany to review the instrument and provide feedback. “If satisfactory, please have the minister responsible for lands sign the statutory instrument and return two signed copies for publication in the Gazette,” Biribonwoha stated.

Minister’s approval
Lands Minister Judith Nabakooba confirmed that the statutory instrument had been approved and would soon be gazetted. “This is a major breakthrough in addressing issues with landlords rejecting busuulu payments,” she said.

Key provisions
The regulations, titled Land (Annual Nominal Ground Rent) Regulations, 2024, apply to registered land occupied by tenants by occupancy. Key highlights include:

  1. Deposits into BOU accounts:
    • Tenants may deposit busuulu into a BOU account if landlords are absent or refuse payments.
    • The Ministry of Lands’ accounting officer will manage the account and issue receipts to tenants as proof of payment.
  2. Conditions for deposits:
    • Tenants must be verified by local authorities and provide conclusive land documentation.
    • Local land committees will inspect the land and submit reports before approving deposits.
  3. Landlord access:
    • Registered landowners can access deposited funds upon request to the accounting officer.
    • Annual audited statements of the account will be published to ensure transparency.
  4. Offenses and penalties:
    • False declarations or unauthorized land occupation are punishable by fines of up to UGX 500,000 or imprisonment of up to one year.
    • Willful land occupation without consent carries a fine of UGX 720,000 or imprisonment for up to four years.

Addressing landlord concerns
Nabakooba advised landlords dissatisfied with the low busuulu rates to apply for government funding under the Land Fund for land acquisition. She emphasized tenants’ duty to pay busuulu and warned that non-payment could lead to eviction under Section 31 of the Land Act. The set busuulu rates include UGX 50,000 for city land, UGX 40,000 for municipal land, UGX 30,000 for urban council land, UGX 20,000 for town board land, and UGX 5,000 for rural areas.

Reactions from Stakeholders
The new regulations have sparked mixed reactions.

  • Bibanja owners’ Perspective:
    Bob Paul Mpiima, chairperson of the Bibanja Owners’ Development Association, welcomed the regulations as a safeguard against illegal evictions.
  • Landlords’ Concerns:
    James Galabuzi Mukasa, chairman of the Uganda Land Owners Association, criticized the regulations for excluding landlords from the consultation process. “Government must involve both landlords and tenants to create equitable solutions,” he argued.
  • Legal Expert’s View:
    Senior constitutional lawyer Peter Walubiri questioned the minister’s authority to prescribe payment mechanisms for busuulu, suggesting that such measures require legislative amendments.

As the implementation of these regulations nears, the debate underscores the need for a balanced approach that addresses the interests of both landlords and tenants while ensuring security of tenure and productive land use.

Torch Media Africa

Published By | Dickens Tiharihondijo

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