Kampala Capital City Authority-KCCA is considering cutting down on its expenditure following a court ruling blocking taxi operators from paying shillings 120,000 each month in operational fees.
On Wednesday, Justice Benjamin Kabito delivered his ruling in a petition filed by taxi operators challenging the legality of the fees. In March last year, led by their chairperson Mustapha Mayambala, taxi operators under Drivers and Conductors Association-DACCA petitioned High court challenging the levy arguing that it was illegal since it was not sanctioned by the authority.
Section 50 of the KCCA act, empowers the authority to levy taxes, charge, collect and appropriate fees and taxes. These include rent, rates, royalties, stamp duties, trading licenses fees from registration and other fees and taxes.
Delivering his ruling on Wednesday Morning, Justice concurred with the taxi operators saying that KCCA didn’t follow the right procedure in coming up with the fees. He therefore ordered KCCA to stop collecting the money and follow the laid down procedures.
Shortly after the court ruling, Jennifer Musisi, the Executive Director said that they are considering trimming their expenditure. Musisi explained that they have been collecting 1.1 billion shillings as part of their local revenue from the taxi operations.
She explained that while KCCA is going to abide by the court ruling, it is going to create a huge financial gap in their funding. Musisi also revealed that the charges were approved at the committee level after Erias Lukwago, the KCCA Lord Mayor failed to convene the authority meeting to pass the fee.
Musisi said that following the court ruling, she had ordered all KCCA law enforcement officers to withdraw from the taxi parks and to stop issuing KCCA payment vouchers to taxi drivers.
She also said that she had ordered the KCCA law enforcement team to release all the taxis that were impounded for alleged failure to pay the operational fees.
She however said despite the court ruling, KCCA still remains with the mandate to regulate business in the city including managing the transport sector