The government has approved the creation of a centralised bank account for tenants to deposit ground rent, known as Busuulu, especially for absentee landlords or those refusing to accept payments.
In an August 1 letter from the Accountant General’s office, Ms. Jennifer Muhuruzi Bigirwa directed the Permanent Secretary of the Ministry of Lands, Housing, and Urban Development (MLHUD) to seek authorization for opening a BBS Busuulu holding account at the Bank of Uganda.
Purpose of the Account
The account is intended to receive remittances from the Uganda Revenue Authority (URA) for landlords who are either absent or reject payments. The instruction aims to ensure tenants have a secure way to pay ground rent, mitigating issues of non-payment evictions.
Busuulu is a fee paid by tenants to landlords for staying on their land. Standardised rates were set by the government in 1995, but these rates have been a point of contention as they do not account for land size or location value. Many landlords view the rates as too low, leading to land sales or evictions when higher rates are not paid.
President Museveni’s Intervention
During Heroes’ Day celebrations in Gomba District on June 9, President Museveni ordered landlords to cease evictions due to non-payment of ground rent.
He emphasized that landlords charging more than the agreed rates must return the excess fees and warned against illegal evictions.
Gomba District chairperson Geoffrey Kiviiri praised the new reforms, noting that an official account for rejected rent deposits would protect tenants from wrongful evictions.
He highlighted the importance of tenants having receipts from payments made into the government account, which can serve as evidence in court.
Implementation Steps
Following the President’s directive, the Permanent Secretary of MLHUD initiated the legal framework by writing to the Accountant General on June 28.
The Accountant General recommended setting up a collection account through URA for rejected Busuulu, with URA handling the remittances and creating a specific code for these collections.
The Ministry of Lands will reconcile the deposits before making payments to landlords. The MLHUD will control and manage the account at the Bank of Uganda, aligning with its mandate of land registration and management.
Historical Context and Advocacy for Land Reform
President Museveni has consistently advocated for land reform, criticizing historical agreements that transferred land ownership from peasants to individuals connected with colonial powers.
He believes these laws have rendered many in the Buganda region landless or tenants on their ancestral lands, leading to 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 in line with new government standards