Construction of another modern market in Mbarara City set to begin next month

MBARARA CITY,  June 29, 2025 – Landlords under their umbrella of The Mbarara Makhan Singh Market Landlords’ Association Limited [MMMLA] has given vendors until July 25, 2025 to vacate the premises of Makhan Singh Market, so as to to pave the way for the construction of a modern Shs 40 billion facility.

This resolution was passed during the association’s 12th Annual General Meeting [AGM] held on Thursday.

According to Thomas Mukundane, MMMLA Chairman, the project was approved on  November 16, 2024, and construction is scheduled to commence on July 30, 2025. A temporary trading area has been allocated for vendors, who are expected to operate there for the next three years.

Funding challenges

Mukundane noted delays were mainly due to funding gaps. The project requires an upfront contribution of 10 percent [Shs 4 billion] to unlock financing from various lenders. Each of the 508 landlords was asked to contribute Shs 7 million, but only 11 members have partly paid, raising just Shs 52 million so far.

“The funders won’t proceed without owners’ equity. We’ve been approached by Uganda Development Bank, Centenary Bank, Housing Finance, and Afreximbank. Planbuild Technical Services Ltd has also pledged construction materials worth Shs 3.4 billion,” Mukundane said.

Talks are ongoing with a Chinese firm, which may offer a 5–6 percent grant in the form of utilities like lifts and solar power. In total, a Shs 5 billion threshold must be reached to begin construction.

Internal disputes

Despite majority support, internal disputes have hindered progress. A group of 38 landlords is accused of sabotaging the project by challenging the ownership structure and blocking the land title at the Land Registry.

Mukundane stated, “We have the mandate of most landlords and support from city authorities. We won’t let a few individuals derail development. The market is in a dilapidated state and needs urgent reconstruction.”

The board has made multiple efforts to engage the opposing group, including meetings facilitated by city authorities and even the Office of the President, all of which were reportedly rejected by the dissenters.

Politicking and market ownership

Abas Rugundana, Chairman of the Mbarara Makhan Singh Traders’ Association (MMSTA), denies being anti-development but opposes the registration of the association as a company by a select group of 15 individuals, which he claims sidelined 387 landlords.

“We want development but with fairness. The land title is in MMMLA’s name, but registration at URSB excluded the majority. Let everyone be listed before we proceed,” Rugundana argued.

He also criticised the board for failing to secure a reliable investor and urged the government to intervene directly. “Let the government source a funder and we pay later. This market supports many families and revitalises the city centre,” he said.

Calls for action

Deus Nkwasibwe from the Office of the President expressed frustration over repeated delays: “This is my last meeting. Don’t invite me again unless you’re breaking ground. If security is needed to help vendors shift, we’ll provide it.”

Robert Kanusu, Deputy RCC of Mbarara City South, urged landlords to utilise the land lease expiring in 2060. “You’re lucky, if this was Kampala, the land would’ve been taken over. Use it before time runs out,” he said.

John Neezha, a former board member, recalled that internal disagreements began as early as 2012 and have consistently stalled the project. “Some members politicise everything. If we don’t separate politics from development, Mbarara City will lag behind,” he warned.

Rev Canon Newton Baryaija echoed these sentiments, stating, “I abandoned my stall due to poor conditions. If we unite, we can finish construction in a few years and benefit from proper rent income.”

Allan Buhanda Karakure, Mbarara’s commercial officer, challenged the board to stop hesitating. “Chairman, set a date to demolish the market. We can’t keep going in circles,” he said.

Market vendors in limbo

Meanwhile, vendors like Jackline Nabaasa say they can’t afford the Shs 7 million contribution. “I’ve been here 20 years. I’m ready to sell my stall, but I can’t find a buyer. I have five children who depend on me,” she said.

Nabaasa added that recent public notices have driven away customers: “Now we barely make Shs 1,000 a day. If the government doesn’t step in, we won’t even manage school fees for our children.”

Background

Makhan Singh Market is one of Mbarara City’s oldest traditional markets, hosting over 1,000 vendors daily. The MMMLA was formed in 2010, with a current membership of 508 landlords. The market spans 1.67 acres and sits on a 49-year lease from Mbarara City Council, due to expire in August 2060.

The association currently holds Shs 132.56 million in turnover, Shs 15.68 billion in total assets, and a net surplus of Shs 37.55 million.

With mounting pressure from city officials and the community, the board has been urged to resolve all conflicts and begin the long-awaited redevelopment.

https://thecooperator.news/another-mega-market-to-be-built-in-mbarara-city/

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