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Parliament has passed the Landlords and Tenants Bill, 2021 which allows landlords to enter tenants’ premises and take possession of the property for recovery of accumulated rent dues. However, this condition is imposed on the issue of notice by the landlord to the tenants who have defaulted in the payment of rent.
“Provided that where the default continues for a period exceeding 30 days, the landlord shall be entitled to re-enter and take possession of the premises in the presence of the local council officers and police of the area, without prejudice to the recovery of the rent arrears. rights,” the bill stated.
The bill is intended to regulate the relationship between landlords and tenants, reform and consolidate the law relating to leasing of premises, and provide for the responsibilities of landlords and tenants regarding leasing out premises. The Deputy Chairman of the Committee on Physical Infrastructure, the Honorable Robert Casolo, who presented the report on the bill, said that the bill makes it mandatory for the landlord and tenant to enter into a tenancy agreement before taking over premises.
The lawmakers also passed a provision in the law where the landlord issues 60 days’ notice before increasing the rent fee. The bill partly states, “When the landlord considers revising the rent charge, the increase in rent should not exceed 10 percent of the rent.”
After amending some clauses in the third reading of the bills, Parliament finally passed the Landlord and Tenant Bill 202 on Tuesday.
The Landlords and Tenants Bill 2022 now proposes:
Currency of rental transactions shall be Uganda Shillings
The House also passed a provision that the currency of transaction between the landlord and the tenant shall be the Ugandan shilling. It, therefore, resolves the dispute that was earlier between landlords and tenants as the former demanded that their clients pay rent in dollars.
The Deputy Chairman of the Committee on Physical Infrastructure, the Honorable Robert Casolo, who presented the report on the bill, said there has been a steady depreciation of the shilling against the dollar, which places an undue burden on tenants. However, the bill allows the tenant and the landlord to make a written agreement on paying a dollar equivalent amount.
The bill allows landlords to enter tenants’ premises and take possession of their property, on the condition that the landlord issues notices to tenants who have defaulted in payment of rent.
“Provided that where the default continues for a period exceeding 30 days, the landlord shall be entitled to re-enter and take possession of the premises in the presence of the local council officers and police of the area, without prejudice to the recovery of the outstanding rent. Right of,” the Bill partially reads.
The new law also imposes penalties for landlords who are found liable for the illegal eviction of their tenants. Going forward, such landlords will have to pay compensation equal to three months’ rent arrears to a tenant.
The Honorable Robert Casolo said that the bill makes it mandatory for the landlord and tenant to enter into a tenancy agreement before taking over premises. “The Bill has now made it mandatory that you have to enter into a tenancy agreement. Therefore, there will always be agreements in any transaction that involves the use of one’s premises,” said the Honorable Kasolo.
The tenancy agreement clearly means collecting the exact rent charges, and how utility costs like electricity and waste disposal will be settled, reducing the potential for conflict between landlords and their customers. The bill is intended to regulate the relationship between landlords and tenants, reform and consolidate the law relating to leasing of premises, to provide for the responsibilities of landlords and tenants with respect to leasing out premises.
It is common in Uganda for a government ministry to issue a policy statement describing what the government hopes to achieve in discharging its responsibilities of governance and leadership and the principles used to achieve them. A government policy document is not a law, but it will often identify new laws needed to administer the policy. The role of the Parliament is to pass laws to implement the policy of the government.
Landlord and Tenants Bill Passes: Landlords Can Now Evict in 30 Days
As you would expect I started my National Housing Policy 2016 from the Ministry of Land, Housing and Urban Development as this new law is about property and housing in Uganda. In this policy, the government acknowledges that Uganda has a housing deficit of 1.6 million units.
The objective of the Uganda Housing Policy is to encourage private investors to invest in real estate and increase their current levels of development to the level of at least 200,000 new homes every year to ensure that our country is able to build its own housing units by the year 2022. fulfills.
The Application Of The Act Has Been Extended To All Public Procurement And Disposal Activities In Respect To Resources In The Form Of Pre-contract Financing By The Provider Or Any Finances Of A Similar Nature Within The Context Of Development Co-operation Agreements For The Implementation Of National Programes.
Ministry Of Finance And Ppda Are Currently Developing Pre-contract Financing Regulations Which Will Elaborate And Provide For Legal Framework Under Which An Interested Provider May Pre-contract Finance A Project.
Disputes Arising In The Procurement Process Are No Longer To Be Referred To The Public Procurement And Disposal Of Public Assets Authority (Ppda) (Section 2(B) Of The 2021 Act. Powers That Were Previously Vested In Ppda Under Section 89,90 And 91 Of The Ppda Act 2003 To Carry Out Administrative Review Have Been Removed From Ppda And Vested In The Accounting Officer.
Accordingly, The Complaints Review Committee Of Ppda Board Which Was Previously Empowered To Handle Complaints From Providers And Any Other Interested Parties Arising Out Of The Execution Of The Procurement Or Disposal Function By The Procuring And Disposing Entities Have Been Disbanded (Section 9 Of The Act). Powers To Handle Disputes Arising In The Procurement Process Have Been Vested In The Accounting Officer Under Section 33 Of The Act.
Powers Of Administrative Review Have Been Vested In The Accounting Officer. A New And Elaborate Process Of Administrative Review By The Accounting Officer Has Been Introduced (Under Section 33) As Follows;
First, A Bidder Who Is Aggrieved By A Decision Of A Procuring And Disposing Entity May Make A Complaint To The Accounting Officer Of The Procuring And Disposing Entity.
Secondly, A Bidder May Also Seek Administrative Review For Any Omission Or Breach By A Procuring And Disposing Entity, Of The Provisions Of The Act, Regulations Or Guidelines Made Under The Act Or Any Provision Of The Bidding Documents.
The Complaint Against A Procuring And Disposing Entity Must Be In Writing And Is Required To Be Submitted To The Accounting Officer, Of The Procuring And Disposing Entity Within Ten Working Days After The Date The Bidder First Becomes Aware Or Ought To Have Become Aware Of The Circumstances That Give Rise To The Complaint.
The Procuring And Disposing Entity Against Which A Complaint Is Made Is Required On Request To Provide The Bidder With A Report Indicating The Reasons For The Rejection Of The Bidder And The Stage At Which The Bidder Was Rejected.
On Receiving The Complaint, The Accounting Officer Must Immediately Suspend The Procurement Or Disposal Process, As The Case May Be. The Accounting Officer Shall Request The Bidders To Extend The Period Of The Bid Validity And Bid Security For The Duration Of The Suspension.
The Accounting Officer Is Required To Make And Communicate A Decision, Within Ten Days Of Receipt Of A Complaint. The Decision Must Be In Writing, Addressed To The Bidder Who Makes The Complaint. It Must Also Indicate The Reasons For The Decision Taken And The Corrective Measure To Be Taken, If Any.
Where An Accounting Officer Does Not Make A Decision Or Communicate A Decision Within The Period Specified Above Or Where A Bidder Is Not Satisfied With The Decision Made By The Accounting Officer, The Bidder May Make An Application To The Tribunal.
Where A Bidder Believes That The Accounting Officer Has A Conflict Of Interest In Respect Of The Complaint, Omission Or Breach Or That The Matter Cannot Be Handled Impartially By The Procuring And Disposing Entity, The Bidder Can Make An Application To The Tribunal For Determination Of The Complaint, Omission Or Breach. Where A Bidder Intends To Make An Application To The Tribunal On The Above Grounds, The Bidder Is Required To Give The Accounting Officer Notice Within Five Working Days After The Expiry Of The Periods Above.
This Means That A Procurement Or Disposal Process That Is Suspended As Above Shall Remain Suspended Until The Tribunal Makes A Decision, Where A Bidder Makes An Application To The Tribunal; And An Accounting Officer Shall Not Enter Into A Contract With A Provider During The Administrative Review Period; Or Before The Expiry Of Time Period Required For Giving Notice; Or Where The Matter Is Referred To The Tribunal, Before The Tribunal Makes A Decision.
Thus, A Procurement Or Disposal Process Must Remain Suspended Where A Bidder Appeals To The Tribunal Against A Decision Of A Procuring And Disposing Entity. The Tribunal Is Required To Issue A Decision Within A Period Of Not More Than Fifteen Working Days Upon Receipt Of An Application For Review.
The Amendment Is Also Clear On Persons Who May Apply To The Tribunal For Administrative Review Of A Decision Of A Procuring And Disposing Entity And They Include; A Bidder Who Is Aggrieved; A Person Whose Rights Are Adversely Affected By A Decision Made By The Accounting Officer; A Bidder Who Believes That The Accounting Officer Has A Conflict Of Interest.
The Amendment Is Also Clear On The Matters Which Can Be A Subject Of Administrative Review By The Tribunal As Above And Clearly Outlines Matters That Shall Not Be A Subject Of Administrative Review As Follows; A Decision By A Procuring And Disposing Entity To Reject Or Cancel Any Or All Bids Prior To Award Of A Contract;
A Decision Of A Procuring And Disposing Entity To Discontinue A Procurement Or Disposal Process, After Receiving Submissions From Bidders Following An Expression Of Interest Or A Pre-qualification; And Decision By A Procuring And Disposing Entity To Limit The Participation Of Bidders Under A Preference Scheme Or A Reservation Scheme.
A Person Who Is Aggrieved By The Decision Of The Tribunal May Appeal To The High Court Only On Points Of Law Within Thirty Days After Being Notified Of The Decision Of The Tribunal Or Within Such Further Time As The High Court May Allow. A Procurement Or Disposal Process That Is Suspended During The Period Of Review By The Tribunal Shall Be Resumed And Shall Continue During An Appeal To The High Court.
The High Court Has Powers To Hear And Determine The Appeal And To Make Such Decisions Or Orders As It Deems Appropriate By Reason Of Its Decision, Including An Order Affirming Or Setting Aside The Decision Of The Tribunal And May Hold The Accounting Officer Or Any Other Person Personally Liable And Award Damages To The Aggrieved Bidder. A Decision Or Order Of The High Court Is Final And Conclusive And Shall Not Be Subject To Appeal To Any Other Court.
The Accounting Officer Has Been Given An Additional Role In Respect To The Procurement Process. The Accounting Officer Of A Procuring And Disposing Entity Has The Overall Responsibility For The Execution Of The Procurement And Disposal Process In The Procuring And Disposing Entity, And In Particular, Has Been Added An Additional Role Of Certifying That The Price Of The Works, Services Or Supplies To Be Procured Conform To The Prices In The Guidelines Issued By The Authority, Among Other Functions (Section 15 (A)(Fa)of The Act.
For Purposes Of Disposal, The Accounting Officer Has Been Made Responsible For Assessing And Verifying The Public Assets Identified By A User Department Or By The Board Of Surveys, For Disposal; Causing The Assets Verified As Above To Be Valued In Accordance With Regulations Made Under The Act; And Approving The Reserve Price Of The Public Assets To Be Disposed Off (Section 15(Fb) Of The 2021 Act). These Powers Were Previously Vested In The Contracts Committee.
According To The Amendment, An Accounting Officer Shall Not Sign A Contract For A Procurement Where The Price Quoted By The Best Evaluated Bidder Is Higher Than The Price In The Guidelines Issued By The Authority.
Previously, An Accounting Officer Was Not To Sign A Contract, Where The Price Quoted By The Bidder Who Is Evaluated By A Contracts Committee As The Best Evaluated Bidder Is Higher Than The Market Price Established By The Accounting Officer.
The Accounting Officers Powers To Undertake An Assessment Of The Market Price Of The Supplies, Services Or Of The Unit Costs Of The Works In Respect Of Which The Procurement Is To Be Made By A Procuring And Disposing Entity Prior To The Commencement Of A Procurement Process Have Been Removed.(Section 15(5) Of The 2021 Act)
The Contracts Committee Shall Be Responsible For Adjudication Of Recommendations From The Procurement And Disposal Unit And For The Making Of Award Decisions. Initially It Was Award Of Contract. A Award Decision Must Be Made Within Ten Working Days Upon Receipt Of A Submission From The Procuring And Disposal Unit (Section 17 (2) Of The 2021 Act).
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