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Mukono Land Owners Struggle with Bank Loans Amid Title Transfer Freeze

Insight Post Uganda by Insight Post Uganda
July 29, 2024
in Business, Security
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Mukono Land Owners Struggle with Bank Loans Amid Title Transfer Freeze

Mukono, Uganda

Frustration is brewing among property owners in Mukono Municipality as they grapple with the ramifications of an extended freeze on land title transfers.

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For the past two years, the ministerial zonal offices (MZO) in Mukono have imposed a sweeping halt on all land transactions within the major blocks of the bustling central area, an action prompted by concerns over dubious land dealings.

This prolonged suspension has significantly hindered property owners’ access to bank loans, exacerbating the financial strain on those dependent on the fluidity of land transactions.

The affected blocks, numbered 190, 193, 107, created between1904-1910 and the later block 530, which encompasses the central business district from 1947, trace a history of land use dating back to the early 20th century, underscoring the deep-rooted significance of these properties in the region’s economic landscape.

Property owners in Mukono are struggling to get bank loans because they can’t use their land titles as collateral. Without the ability to transfer these titles, banks see them as useless.

Wilson Muzzanganda, who owns Muzza Buildings in Mukono, says he’s now required to provide a lot of additional paperwork to secure loans.

He points out that although his properties are in a prime business area, the restrictions on land transactions are making it hard for him to use them as loan security.

“Our properties are located in the central business area, but it is currently affected by the restrictions on land transactions yet it is these properties we use as security in banks to secure loans.”

Samuel Kasasa, who owns Unique Garments along the Kampala-Jinja Highway, was in the process of correcting mistakes made during the registration of his land title when the restrictions were imposed.

He was mistakenly advised by land brokers to get a freehold title for Mailo land instead of a lease from the Buganda Land Board.

Similarly, Ronald Kyesswa, who shares land with the former landlord Nabeeta, faces difficulties because of an overlaid title from a neighbouring developer.

His title now has legal issues that are difficult to fix due to the transaction freeze, making it almost impossible to use as loan security.

Stephen Ndegeya, the Senior Staff Surveyor at MZO-Mukono, acknowledges the frustration of landlords and the community.

He explains that the halt in land transactions was meant to address the problems caused by fraudulent land dealings once and for all.

In Mukono, land issues like double titling, overlapping titles (where titles extend beyond their actual boundaries), unregistered leases on mailo land, and freehold titles on Kabaka’s land are common problems.

Stephen Ndegeya, Senior Staff Surveyor at MZO-Mukono, says they have put together a report that addresses these challenges and are now discussing it with all relevant parties to ensure smooth implementation.

RDC Fatumah Ndisaba making inquiries at the MZO-Mukono's registry desk.
RDC Fatumah Ndisaba making inquiries at the MZO-Mukono’s registry desk.

The report reveals that four major blocks in Mukono have a total of 4,004 titles, categorised into public, mailo, freehold, and leasehold. It also highlights issues like double titles, titles with missing data, and titles without associated plots.

Doreen Tumushabe, Principal Assistant Secretary at MZO-Mukono, assures that efforts to correct these errors will be completed by November this year, allowing land transactions in Mukono to resume.

She urges all stakeholders to assist in the process when contacted to help speed things up.

Fatumah Ndisaba Nabitaka, the Resident District Commissioner says her office is informed about the ongoing process intended to rectify the matter of land ownership in Mukono town.

She notes that they are not currently allowing any demolition and eviction to come to their offices until the land office completes the ongoing process.

However, she asks the lands office to include blocks comprising the Namanve industrial area since it also has similar challenges listed on the restricted blocks.

The District Chairperson, Rev. Peter Bakaluba Mukasa is excited by the development at the lands office saying it will help solve challenges of ownership.

“As the chairperson but also as the landlord, I am so happy about this move. For your information, I have a building on plot 1, block 530 but someone also produced a second title on the same block. So if a public hearing is yet to be done, I am sure I will regain full control. I am just surprised if it happens to me, the chairperson, what about the other common people.” Rev. Bakaluba said.  

END

Tags: Mukono Lands OfficeRobert Mbaziira
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