Wakilii

Kampala Capital City Authority v Shumuk Investments Limited (Miscellaneous Cause No. 64 of 2024)

High Court · [2025] UGCOMMC 308 · 2025 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for a summary warrant for recovery of property rates under Section 28(3) of the Local Governments (Rating) Act
Decision
Summary warrant issued for recovery of property rates arrears

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that where a local government has complied with statutory procedures for property valuation, published the valuation list, allowed objections, and issued proper demand notices, and the property owner has failed to pay rates due within the statutory period, the High Court has jurisdiction to issue a summary warrant for recovery where the amount exceeds magistrates' court pecuniary jurisdiction. Application allowed. Summary warrant issued for UGX 123,284,491 in property rates arrears plus continuing penalties at 2% per month.

Outcome

Summary warrant issued for recovery of property rates arrears

Facts

Kampala Capital City Authority (KCCA) conducted a property valuation exercise in 2018 for Nakawa Division, which included eight industrial and commercial properties owned by Shumuk Investments Limited. KCCA published a gazette notice on 21 March 2018 notifying the public of the draft valuation list and inviting objections within 30 days. The Respondent did not object. The valuation list came into force on 1 July 2018. Property rates became payable in two instalments annually on 30 September and 31 December. The Respondent defaulted on payments. KCCA issued a statutory demand notice on 2 May 2023 (dated 2 July 2022) demanding UGX 105,754,696.58. A further demand notice was issued on 10 August 2023 for UGX 120,472,584. The Respondent failed to pay within the two-month statutory period. As at the application date, the Respondent's liability stood at UGX 123,284,491. KCCA applied for a summary warrant. The Respondent appeared but filed no affidavit in reply and no submissions.

Issues

  1. Whether the application for a summary warrant should be allowed.

Orders

  • A summary warrant issues to the Applicant for the recovery of UGX 123,284,491 due to it in property rates from the Respondent in respect of the Respondent's industrial and commercial properties located in Nakawa Division, Kampala City.
  • The Applicant is entitled to recover any penalty that continues to accrue at the statutory rate of 2% per month from 28 June 2024 until full payment.
  • Costs of this application are awarded to the Applicant.

Rules and key headnotes

Tax Law — Property Rates — Local Government Power to Levy and Collect
Under Section 62 of the Kampala Capital City Authority Act Cap 195, KCCA may levy, charge, collect and appropriate fees and taxes including rates, in accordance with any law enacted by Parliament under Article 152 of the Constitution, and has the mandate to implement the Local Governments (Rating) Act Cap 140 within Kampala.
Administrative Law — Property Valuation — Objection Procedure
Section 14 of the Local Governments (Rating) Act Cap 140 requires any person aggrieved by a draft valuation list published under Section 18 to lodge an objection with the local government within 30 days from the date of publication. Where no objection is lodged within the statutory period, the property owner is bound by the valuation list once it comes into force under Section 21.
Tax Law — Property Rates — Recovery Procedure — Summary Warrant
Under Section 28(3) of the Local Governments (Rating) Act Cap 140, if after service of a demand notice the amount is not paid within two months, the local government may apply to a magistrate for a summary warrant to recover the amount from the person liable.
Administrative Law — Jurisdiction — High Court Power to Issue Summary Warrant
Although Section 28(3) of the Local Governments (Rating) Act Cap 140 expressly permits a magistrate to issue a summary warrant for collection of property rates, the High Court has jurisdiction to issue such a warrant where the quantum of rates due exceeds the pecuniary jurisdiction of a magistrate's court under Section 206 of the Magistrates Courts Act Cap 19, by virtue of the High Court's unlimited original jurisdiction under Article 139 of the Constitution and Section 14 of the Judicature Act Cap 16.

Legislation cited (18)

Cases cited (2)

  • Kampala Capital City Authority v Aya Investments (U) Ltd (Miscellaneous Cause No. 10 of 2019)
  • Kampala Capital City Authority v Ham Enterprises (U) Ltd (Miscellaneous Cause No. 13 of 2023)

Full judgment

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The original judgment as reported. Read the original PDF before relying on any passage.

Kampala Capital City Authority v Shumuk Investments Limited (Miscellaneous Cause No. 64 of 2024) [2025] UGCommC 308 (29 August 2025)
Source: this page presents Wakilii’s issue analysis and metadata for a publicly reported Ugandan judgment. Any AI-generated summary is marked as such. Judgment text is sourced from the Uganda Legal Information Institute (ulii.org). Wakilii is not affiliated with ULII.