KCCA ordered to pay UGX13.7 bn to billboard companies; judge says fees were illegally levied The judge agrees with the National Outdoor Advertising Contractors Association Ltd that the fees sanctioned under Minute; KCCA 11/61/2018 and published in the Uganda Gazette of 11th January 2019 under General Notice No.38 of 2019 were outside KCCA’s powers as the city authority does not have powers to levy, charge and collect outdoor advertising rates as there is no enabling legislation.

High Court Judge, Ssekaana Musa has this morning ordered Kampala City Council Authority (KCCA) to refund UGX13,726,210,605 to billboard companies- an amount he says was illegally levied.

Delivering his ruling in MISC. Cause No. 407 OF 2019, Justice Ssekana said that he found “the outdoor advertising rates levied, charged and collected by the respondent from the applicant’s members under the respondent’s City Outdoor Advertising Policy, 2008 and the varied new Outdoor Advertising rates levied, charged and collected under Minute; KCCA 11/16/2018 are void, ultra vires, illegal and unlawful.”

He also quashed KCCA’s decision that approved the outdoor advertising rates under Minute; KCCA 11/61/2018 and published in the Uganda Gazette of 11th January 2019 under General Notice No.38 of 2019, for the same reasons- that is was “ultra vires, illegal and unlawful.“

The judge agreed with the National Outdoor Advertising Contractors Association Ltd that sued KCCA that the billboard companies were “entitled to a refund of all the money and other charges unlawfully levied, charged, collected and received as outdoor advertisement rates by the respondent from the applicant’s members since 2011.”

“The respondent shall refund all the monies collected from the appellant’s member by way of illegal tax. The same shall be determined by the court upon clear proof of evidence (documentary). The collective amount of UGX 13,726,210,605/= will have to be specifically proved and split accordingly,” he ordered.

“The applicant is awarded interest on the amount that will be proved before court at 15% per annum from the date of filing this matter. The applicant is awarded costs of the application,” he added.

Brutus Kagingo, the Managing Director of and Chairman of the National Outdoor Advertising Contractors Association (NOACA) Ltd and the Executive Director at Prime Media Network, an outdoor company, welcomed the ruling.

“The ruling rightly addresses our concerns- where government institutions decide to levy and apportion all sorts of fees on business people and earn money without a legal basis.  As an association, we tried to advise and work out an arrangement with KCCA but they were adamant and refused to work with us. We are happy that court has guided them and we hope and pray that KCCA will understand this ruling and enact laws that will enable our businesses to prosper within the law,” he said in a phone interview with this reporter.

Background of the case

The billboard owners association dragged KCCA to court alleging that sometime in 2008, Kampala City Council, the predecessor of the respondent developed the City Outdoor Advertising Policy 2008, creating various outdoor advertising rates and fees to be paid by outdoor companies as a prerequisite for carrying out their outdoor advertising business in the city of Kampala.

In 2011, following the establishment of a new KCCA as a predecessor to KCC, the same inherited and further implemented the same by levying, charging, and collecting outdoor advertising rates from the members of the applicant based on the City Outdoor Advertising Policy, 2008 legislation enacted by parliament. KCCA, however under KCCA minute; KCCA 11/61/2018 made a decision of approving revised outdoor advertising rates and published the same in the Uganda Gazette of 11th January 2019 in which it made more than 100% increment on all the rates and charges, prompting the billboard companies to go to court.

The crux of the case was that KCCA did not have “powers to levy, charge and collect outdoor advertising rates as there is no enabling legislation and therefore the said rates are illegal, unlawful and ultra vires (acting or done beyond one’s legal power or authority.”

The billboard companies also claimed that KCCA’s “decision to levy outdoor advertising rates based on policies and minutes of the respondent was without justification, ultra vires, illegal, unlawful and unconstitutional for being in contravention of the Constitution of the Republic of Uganda and the Kampala Capital City Act.”

The outdoor advertising companies were represented by lawyers, Mr. Samuel Muyizzi Mulindwa and Mr. Kenneth Paul Kakande whereas KCCA was represented by Ms. Doreen Tusiime.