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Lease Variation for Factory Establishment

Land Transactions in Uganda

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0% found this document useful (0 votes)
27 views35 pages

Lease Variation for Factory Establishment

Land Transactions in Uganda

Uploaded by

lohanosfrederick
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

LAND TRANSACTIONS

WORKSHOP 2

PART A

BRIEF FACTS.

Benson has legally acquired property B, a leasehold tenure, and would like to establish a
factory that manufactures and assembles motor vehicle parts.

ISSUES

1. What additional steps are required to vary the lease terms, to enable the establishment
of a factory manufacturing and assembling motor vehicle parts?
2. What are the compliance requirements for issue 1 above?
3. What is the pertinent document required to vary the lease terms, to enable the
establishment of a factory, manufacturing, and assembling motor vehicle parts?

LAW APPLICABLE

1. Constitution of The Republic of Uganda, 1995 as amended.


2. The Registration of Titles Act, CAP. 240.
3. The Land Act, CAP 236.
4. The Landlord and Tenant Act Cap 238.
5. The Distress for Rent (Bailiffs) Act Cap 286
6. The Physical Planning Act of 2010, No. 8 of 2010.
7. The National Environment Act CAP 181.
8. The Public Health Act Cap 310.
9. The Land Regulations of 2004 (as amended).
10. The Distress for Rent (Bailiffs) Rules SI 68-1.

RESOLUTION

What additional steps are required to vary the lease terms, to enable the establishment of a
factory, manufacturing, and assembling motor vehicle parts?

It is a trite law that every person in Uganda has a right to own property as an individual, as
provided for under Article 26(1) of the constitution.

Benson holds a lease tenure over Property B. Section 1 of the Land Act, defines a lease
tenure, as the holding of land for a given period from a specified date of commencement, on
such terms and conditions as may be agreed upon by the lessor and lessee, the incidents of
which are described in section 3, and includes a sublease.

Broadly defined under Section 3(5) of the Land Act as “a form of tenure under which one
person, namely the landlord or lessor, grants or is deemed to have granted another person,
namely the tenant or lessee, exclusive possession of land usually but not necessarily for a
period defined, directly or indirectly, by reference to a specific date of commencement and a
specific date of ending; usually but not necessarily in return for a rent which may be for a
capital sum known as a premium or for both a rent and a premium but may be in return for
goods or services or both or may be free of any required return.”

A lease is a bilateral contract which as a general rule confers an estate in the land capable of
binding third parties. The contract is for the exclusive possession and profit of land for some
determinate period.

Section 101 of the Registration of Titles Act, is to the effect that Covenants to be implied in
every lease against the lessee include payment of rent at the times mentioned and keeping the
leased property in good and tenable repair.

Section 104 of the Registration of Titles Act, is to the effect that where there is a transfer
related to a lease, there will be a covenant with the transferor by the transferee binding him or
her and his or her executors.

Section 117 of the Registration of Titles Act, implies that implied covenants and powers
may be modified or negative. The parties to a lease agreement may exclude or modify any or
all covenants implied under the Registration of Titles Act by express declaration in the
lease.

Section 184 of the Registration of Titles Act, is to the effect that forms contained in the
several Schedules may be modified or altered in expression to suit the circumstances of every
case; and any variation from those forms respectively in any respect not being a matter of
substance shall not affect their validity or regularity.

PROCEDURE FOR VARIATION OF THE EXISTING LEASE

STEP 1

In this case, the lease was granted by a public entity, Kyankwanzi District Land Board, we
shall proceed to make an application to them by formal letter for variation of the lease.

The purpose of the 1st step is to enter into a new agreement with the lessor to vary the terms
of the lease agreement to enable Benson use the land for another purpose, i.e. Establishment
of a factory, manufacturing and assembling motor vehicle parts.

STEP 2

Seek permission from the Physical Planning Authority under Section 35(1) of the Physical
Planning Act. A person is not allowed to carry out a development within a planning area,
without obtaining development permission from a physical planning committee.

Section 36(1) of the Physical Planning Act, is to the effect that an application for
development permission shall be made using Form P.P.A.1 set out in Schedule 6 of this
Act. The application shall be made to the relevant local government which shall then forward
the application to the relevant physical planning committee, Section 36(2) of the Physical
Planning Act.

STEP 3

Section 39 of the Physical Planning Act, provides that, where a development application
relates to matters that require an environmental impact assessment to be carried out, the
approving authority or physical planning committee may grant preliminary approval of the
application subject to the applicant obtaining an environmental impact assessment certificate
following the National Environment Act. Section 110 of the National Environment Act,
is to the effect that, environmental and social impact assessments are undertaken under the
Act and regulations therein to evaluate environmental and social impacts, risks or other
concerns of a given project or activity, taking into account the environmental principles set
out in section 5(2).

STEP 4

After the requisite permission is obtained. It is important to note that variation is between a
lesser and lessee.

The applicant must have or be in his/her possession of a letter from the controlling authority
for a variation of the lease, a duplicate certificate of title, and two passport photographs. If the
variation involves changes of land use, then form Physical Planning Authority, is included.

The applicant presents the documents to the Department of Land Administration for
assessment of revised ground rent and premium per annum and collects the documents after 3
working days for confirmation of assessment.

The Department of Land Administration forwards the documents to the Office of Titles for
drafting of the variation deeds.

STEP 5

The applicant collects the variation deed after 5 working days and takes them for payment of
stamp duty and registration fees and execution by the parties.

STEP 6

The applicant returns the embossed documents, dated, signed and sealed by the chairperson
and secretary of the controlling authority and the owner. A photocopy of all documents is
also submitted which is stamped “received” and returned to the applicant.

STEP 7

The applicant checks after 10 working days to collect the completed duplicate certificate of
title. The procedure above mostly applies to variation of leases where the District Land Board
is the lessor, just as it is in the instant case.

STEP 8

Evict the tenants legally, by giving them the right notices and compensating those that are
mandated to be compensated.

DOCUMENTS REQUIRED AT THE DEPARTMENT OF LAND ADMINISTRATION

· Letter from controlling authority for a variation of the lease.

· Duplicate certificate of title.


· General receipts of payment.

FEES PAYABLE

· Preparation fee 10,000/=

· Stamp duty 10,000/= for 2 copies of the variation lease document.

· Registration fees 10,000/=

· Variation fee 20,000/= (premium and ground rent must have been assessed and
paid by the client).

What are the compliance requirements for issue 1, above?

In Uganda, the pertinent document required to authorize the establishment of a venture on


leased land is typically the Lease Agreement. This document outlines the terms and
conditions under which the leaseholder has the right to use the land.

For the establishment of a venture, the lessee will need to ensure the following:

1. Valid Lease Agreement: The lessee must hold a valid and legally registered lease
agreement, specifying the lease term, rent, and permissible uses of the land. This is
crucial to ensure that the lessee has the right to develop and use the land for the proposed
venture, in this case, a factory manufacturing and assembling motor vehicle parts.

2. Land Title or Certificate of Ownership: The lease agreement should be registered


with the land registry, and a certificate of title or proof of land ownership should be available.
As required by Section 54 of the Registration of Titles Act.

3. Approval from Relevant Authorities: Depending on the nature of the venture,


additional approvals or permits may be required from various government bodies, such as:

○ Physical Planning Authority: For zoning or land use approvals. Section


35(1) of the Physical Planning Act.
○ National Environment Management Authority (NEMA): If the project may
have environmental impacts. Section 39 of the Physical Planning Act &
Section 110 of the National Environment Act.
○ Local Government Authority: Depending on the region, local authorities
may also require permission, Sections 10 and 11 of the Physical Planning
Act, to provide for physical planning committees and their functions.
○ UNBS Clearance.

4. Business Registration and Licensing: To legally establish the venture, the business
must be registered with the Registrar of Companies and obtain a trade license (UIA
Investment license)

5. Stamp duty and tax payment obligations. Section 5 of the Stamp Duty Act.
What is the pertinent document required to vary the lease terms, to enable the
establishment of a factory, manufacturing, and assembling motor vehicle parts?

FORMAL LETTER

Owamani Benson
P. O. Box 888
Kyankwanzi -Uganda

24 Nov. 24

The Chairperson
Kyankwanzi District Land Board
Kyankwanzi District

Dear Sir/Madam,

Re: Re: Request for Variation of Lease for Plot 12, Block 32, Singo, Kyankwanzi
District

I hope this letter finds you well. I am writing to formally request a variation to the lease
agreement for Plot 12, Block 32, Singo, Kyankwanzi District, which I, Owamani Benson,
hold under the lease issued by Kyankwanzi District Land Board on 14th November 2022.

Being the registered lessee of the above-mentioned plot, and due to changes in the intended
use of the land; establishing a factory that manufactures vehicle parts, unforeseen
circumstances related to investment priorities, and the availability of relevant raw materials, I
kindly request your consideration for the following amendments to the current lease terms:

1. Change in land use, to enable me to establish a factory that manufactures vehicle


parts.
2. Change the physical plans of the urban Authority to enable me set up the venture of a
factory.

I believe that these changes will ensure that the land is put to its best and most productive
use, in line with the development plans and local regulations. I am committed to ensuring that
all the required procedures are followed and will be happy to provide any additional
documentation or clarifications as necessary to support this request.

I would be grateful if you could review my request and guide me on the next steps. Please
feel free to contact me if you require any further information or if an in-person meeting
would be necessary.

Thank you for considering my request. I look forward to your positive response.

Yours faithfully,

.................................................................
Owamani Benson
Proprietor of Plot 12, Block 32, Singo
Kyankwanzi District
NIN
DEED OF VARIATION

THE REPUBLIC OF UGANDA

THE REGISTRATION OF TITLES ACT CAP 240

THE CONTRACTS ACT CAP 284

LEASEHOLD REGISTER

VOLUME MIT 6 FOLIO 10 PLOT 12 BLOCK 32

SINGO, KYANKWANZI

DEED OF VARIATION OF LEASE

THIS VARIATION OF LEASE made on this 24th day of November 2024

BETWEEN

KYANKWANZI DISTRICT LAND BOARD, herein in after referred to as “LESSOR” and


having their address as KYANKWANZI DISTRICT P.O. Box 445, KYANKWANZI.

AND

OWAMANI BENSON, herein after referred to as the “LESSEE” C/o Firm F6 and Co.
Advocates Lira - Uganda.

WHEREAS

THE LESSOR did on the 14th day of November 2022 lease Land situated at plot 12, Singo
Kyankwanzi of lease register HQT 1165/4 to THE LESSE for 49 years commencing on 14th
day of November 2022 which lease was registered under instrument number 000226531.

AND the same lease was transferred to the LESSEE and registered under Instrument
Number 000226531 on …… 20....

THE PARTIES have agreed to change the terms of the lease from the date of execution of
this agreement in consideration of the conditions and covenants hereafter set.

NOW THIS VARIATION OF THE LEASE DEED WITNESSETH AS FOLLOWS

1. That the lease registered on the 14th day of November 2022 for erecting buildings of a
particular value, is hereby varied to the purpose of constructing a factory that manufactures
car parts from the date of the execution of this variation deed.

[Link] the rent reserved shall be Shs 825,000 (Eight Hundred Twenty Five Thousand
Shillings) per year payable in one instalment on the 1st day of January of each year.

[Link] the rent shall be received and revised every 10 years from the date of this deed to it in
time with the going rate of rents of properties in similar locations on the date of the revision
[Link] the parties are unable to agree on the rate of revision, the value shall be set by the
government value or any other qualified practicing licensed value agreed by the parties and
the costs therefore shall be equally by the parties.

IN WITNESS WHEREOF THE PARTIES HERETO have affixed their respective


signatures.

.........................AROLEA.........................
(Secretary and Chairperson)
Kyankwanzi District Land Board

In presence of

…………………LOHANOS……………
WITNESS

AND

…………OWAMANI………………
OWAMANI BENSON

In presence of

…………………MATINOS……………
WITNESS

DRAWN AND FILED BY

Firm F6 & Co. Advocates


Law Development Centre
P.O. Box 000
Lira- Uganda
PART B

What steps would Muzamir take to address default in rental payments by each of the
tenants in Property B assuming that he took over as landlord and retained them in the
premises?

Leases have a number of tenancies and these include:

1. Periodic Tenancies

Periodic tenancy. A tenancy that is automatically renewed for successive periods of equal
length (e.g. month-to-month or year-to-year), until terminated by proper notice." Black’s Law
Dictionary, 8th Ed

Therefore in the instant case BETTAFIRCA LTD, BRIGHT STARS HIGH SCHOOL are
periodic tenants’ reason being the pay rent annually and bi-annual.

2. Tenancy at Will

Tenancy at will. A tenancy that may be terminated at any time by either party, with or without
cause; a tenancy that is terminable at the will of either party." Black’s Law Dictionary 8th ED

This form of tenancy is implied when a landowner allows another person to enter into
possession as a tenant without specifications of the terms of the tenancy.

In the Instant case, the relatives of the Executive director of Smart Investments Ltd who occupy
the 3rd floor of the building are tenants at will.

3. Tenants at sufferance

Tenant at sufferance. A person who holds possession of land with the owner's tacit consent, but
without a lease or other legal right to possession; a tenant whose original lawful possession has
become unlawful due to the expiration or termination of the lease." Black’s Law Dictionary 8th
ed

The Landlord shall take the following steps to deal with defaulting tenants

1. Issuance of a demand Notice cum notice of intention to sue to all the defaulting
tenants,

This kind of notice informs defaulting tenant(s) of the fact that they have failed to fulfill their
obligations of paying rent and asking them to pay the rent due within a specified period in the
notice.

2. Distress for rent

Distress for rent is a remedy which enables a landlord to seize and sell the goods of his tenant
in satisfaction of rent due, without the need for any court proceedings."(Megarry and Wade,
The Law of Real Property, 8th ed., p. 864)
3. Termination of tenancy.

This can be by consent or by court order

4. Sue the defaulter’s recovery of the rent sum and termination of the contract.

Here we shall proceed by way of a specially endorsed plaint.

PART B (ii) DOCUMENTS

The most appropriate action is to sue for recovery of rental sums and eviction under O.36 of
the Civil Procedure Rules.

THE SUMMARY PLAINT

THE REPUBLIC OF UGANDA

IN THE CHIEF MAGISTRATE COURT OF KYANKWANZI

HOLDEN AT KYAKWANZI

CIVIL SUIT NO………………...OF 2024

OWAMANI BENSON :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: PLAINTIFF

VERSUS

BETAFFRICA LTD ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: DEFENDANT

PLAINT UNDER SUMMARY PROCEDURE

(Order 36 of Civil Procedure Rules SI 71-1)

1. That the plaintiff is a male adult Ugandan of Sound Mind C/o F6 & Co. Advocates,
LDC –LIRA UNIVERSITY, [Link] 112, LIRA.

2. The defendant is a Company dully incorporated Under the Laws of Uganda with
capacity to sue and be sued in its own name and the plaintiff undertakes to effect service of
court process.

3. The plaintiffs claim against the defendant is for Uganda Shilling's fourteen Million
Eight Hundred Fifty Thousand (14,850,000) dollar rate as at 23rd November ,2024), and
Recovery of the building where the defendant is currently occupying.

4. The facts leading to this cause of action arose as hereunder:


a) That on the 2nd day of January 2022, the plaintiff (landlord)and the
defendant (tenant) entered into a tenancy agreement adopting the previous
terms that existed between the defendant and the former landlord which
among others included that the defendant continues to pay annual rent
USD4000(UGX 14,850,000/=) payable in two equal installments.

b) That the defendant for the past two years (2022&2023) duly paid rental dues
the plaintiff but has defaulted to do the same for the year 2024 without any
justifiable reasons whatsoever.

c) The plaintiff avers that he has on several occasions reminded the defendant
to pay the rental sum for the year 2024 and to date, but has failed to heed to
the plaintiff’s request despite continued use of the premises.

5. That due to the aforesaid, the plaintiff has suffered financial loss arising from default
in payment of rent for which he holds the defendant responsible.

6. The plaintiff shall also aver and contend that the defendant has absolutely no defence
to this suit.

7. A statutory notice was duly communicated to the defendant and ignored.

8. The cause of action arose at Kyankwanzi within the jurisdiction of this Honourable
Court.

Wherefore the plaintiff prays for judgement against the defendant for;

a) Recovery of rental sum of UGX 14.850,000/=

b) Interest on (a) at the rate of 24% per annum from the date of receipt until
payment in full.

c) Eviction order against the defendant from the premises

d) Costs of the suit.

Dated at Lira this 24th day of November 2024.

………………………………..

F6 &Co Advocates
Drawn & filed by;
F6 & Co Advocates
P.O BOX 24
1st floor, Room1
LDC lira
THE REPUBLIC OF UGANDA

IN THE CHIEF MAGISTRATE COURT OF KYANKWANZI

HOLDEN AT KYAKWANZI

CIVIL SUIT NO………………...OF 2024

OWAMANI BENSON:::::::::::::::::::::::::::::::::::::::::::::::::::::PLAINTIFF

VERSUS

BET AFFRICA LTD::::::::::::::::::::::::::::::::::::::::::::::::::::::DEFENDANT

AFFIDAVIT VERIFYING PLAINT

I, Muzamir of C/O F.6 & CO Advocate of Kyankwanzi, do solemnly swear and sincerely state
on oath as hereunder:

[Link] I am an adult male Ugandan of sound mind, the plaintiff herein and swear to this
affidavit in that capacity.

[Link] at the commencement of this action, the defendant was truly and justly indebted to me
in the sum of Ugx 14,850,000/= particulars of which appear in the summons & plaint annexed
hereto.

[Link] I verily believe that the defendant has no defence to the claim.

[Link] I swear to this affidavit in verification of the contents of the plaint in summary suit as
true and state that what I do state herein is true and correct to the best of my knowledge.

Sworn by the said Muzamir

At Lira this 24th day of November 2024.

………………………………………
DEPONENT

BEFORE ME
……………………………………
COMMISSIONER FOR OATHS

Drawn & filed by;


F6 & Co Advocates
P.O BOX 24
1st floor, Room1
LDC lira
THE REPUBLIC OF UGANDA

IN THE CHIEF MAGISTRATE COURT OF KYANKWANZI

HOLDEN AT KYAKWANZI

CIVIL SUIT NO………………...OF 2024

OWAMANI BENSON :::::::::::::::::::::::::::::::::::::::::::::::::::::::: PLAINTIFF

VERSUS

BET AFFRICA LTD ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: DEFENDANT

SUMMARY OF EVIDENCE

The plaintiff shall adduce evidence to this Honourable Court to prove that the defendant is
truly and justly indebted to him to an annual rental sum of Ugx 14,850,000/=(USD4000).

LIST OF WITNESSES

1. The plaintiff
2. Others with leave of Court

LIST OF DOCUMENTS

1. Tenancy Agreement
2. Receipts for payment of rent

LIST OF AUTHORITIES

1. The civil procedure Act Cap


2. The Civil procedure Rules SI-71-1
3. The Evidence Act Cap
4. Case law
5. Any other with leave of Court

Dated at lira this 24th day of November 2024

………………………………..

F6 & Co Advocates
Drawn & filed by;
F6 & Co Advocates
P.O BOX 24
1st floor, Room1
LDC lira
PART C

ISSUES.
1. Whether Benson’s lessor can terminate the lease in property B and if so, what steps
can be taken to terminate the lease?
2. What is the most appropriate document to terminate the lease?
3. What are the steps Benson would have to take in seeking relief for forfeiture?
4. What is the pertinent document seeking relief for forfeiture?

Issue 1.
Whether Benson's lessor can terminate the lease and what steps can be taken to
terminate the lease?

It is important to note that Benson is a sub lessee and Smart Investments is the lessor in
respect of Property B. Section 111 of the Registration of Titles Act, Cap. 238 provides that
provisions affecting leases, lessors and lessees shall apply to subleases, sublessors and
sublessees.

When a lessee is in breach of a lease agreement, the lessor may terminate the lease
agreement. Leases may be terminated by forfeiture, surrender, merger, notice, effluxion of
time. In the above facts, the most appropriate is termination by forfeiture.

1. Termination by forfeiture.
Forfeiture or re-entry is the termination of a lease by the lessor before the term expires.
Principles of Land Law in Uganda by Mugambwa. It is a remedy available for the lessor
when the lessee defaults on payment of rent. The lessor can re-enter the premises.

Section 102(b) Registration of Titles Act, Cap 240 is to the effect that if the lessee fails to
pay rent for 30 days or breaches any lease covenants (express or implied) and does not
remedy the breach within 30 days, the lessor or their successor may re-enter and take
possession of the property, even without a formal demand for payment or compliance.
As per Section 111 of the Act, provides that provisions affecting leases, lessors and lessees
shall apply to subleases, sublessors and sublessees.

Francis Butagira and Contractors Limited V Deborah Namukasa 1992-93 HCB 98. It
was held that breach of a term of a lease including payment of the reserved rent, amounted to
breach of contract.
Section 105 of the Registration of Titles Act, Cap 240, the registrar upon proof to his or her
satisfaction of recovery of possession by a lessor or his or her transferees by any legal
proceeding, may make an entry of recovery of possession in the Register Book.

Therefore, Benson’s lessor can terminate the lease by forfeiture.


Below are the steps Benson’s lessor would take to effectively terminate the lease due to a
default on the terms of the lease;
1. Provide Written notice of demand. Issue a formal notice of default to the lessee.
This notice should specify the breach( for example unpaid rent) However, as per
Section 102(b) of the Registration of Titles Act, Cap 238 this isn’t mandatory.
2. Issue a notice of termination. Where the lessee is in default even after the grace
period of the 30 days, a notice of termination is issued. This notice should state that
the lease is being terminated due to the lessee’s failure to comply with the terms of the
lease agreement for a substantial period and also provide the deadline for vacating the
premises.
3. Re-entry upon and possession of the leased property by the lessor. As per Section
102(b) of the Registration of Titles Act. Forfeiture is the re-entry by the lessor for
breach of covenant that entitles the lessor to terminate the lease. if the lessee fails to
pay rent or breaches any lease terms and the default continues for 30 days without
correction, the lessor (or their transferee) has the right to re-enter and take possession
of the property, even without a formal demand for rent.
In Kasaija v Registrar of Titles Misc. Application No. 51 of 1993; [1992] 4 KALR, it
was held that the forfeiture can only be manifested by actual physical re-entry or by the
commencement of an action for possession
4. Recovery of possession by lessors to be entered in the Register book. The registrar
may then record the recovery of possession by a lessor through legal proceedings in
the register. Once recorded, the lease term ends but any prior claims or actions for
breach of lease remain unaffected as envisaged under Section 105 of the Registration
of titles Act.

Other forms of termination of leases explained;


2. Notice to quit.
A lease for a fixed period cannot be terminated by notice by either party unless the right to
terminate is expressly reserved in the lease or in the event of breach of a term, which entitles
either party to terminate the lease. Clifton Securities v Huntley [1948] 2 All ER 283
Periodic tenancies can be terminated by notice of both the landlord and the tenant. In absence
of an agreement between the parties as to notice, it will be determined by the period of the
lease.

Section 38(1) of the Landlord and Tenant Act provides that a tenancy terminates where a
landlord or tenant gives notice of termination of the tenancy in accordance with the Act or
with the terms of the agreement.

The case of Queen Clubs Gardens Estate V Bigwell (1942) 1 KB 117 provides that a
weekly tenancy requires a notice one week and a monthly tenancy requires a notice of one
month. A quarterly tenancy requires a notice of three months and a tenancy from year to year
requires a notice of 60 days.

The same is provided in section 38(2) of the Landlord and Tenant Act, Cap.236.
3. Surrender.

Surrender occurs where before expiration of the lease, the lessee gives up possession of land
to the lessor.
Section 107(1) of the Registration of Titles Act provides that a lease under the act may be
surrendered and determined as well by the operation of the law.
A surrender is made by the lessee himself and under section 107(2), it shall be registered by
the Registrar.

Upon surrender, the estate and interest if the lessee vests in the lessor or proprietor and
production of such lease or duplicate bearing the endorsement or memorandum shall be
sufficient evidence that the lease was legally surrendered- Section 107(3) of the RTA.

4. The lease can also be terminated by merger.


Merger occurs where the lessee acquires the reversion from the lessor. The lease merges with
the reversion and is thereby terminated.

5. By frustration.
Frustration is a common law doctrine. It can be invoked to discharge a party from contractual
liability where the unforeseen event has made the performance impracticable.

However, according to the instant facts, the best ways for Benson's lessor to terminate the
lease in case of the breach of the terms of the lease by Benson for a substantial period of time
shall be forfeiture.

ISSUE 2.
What is the most appropriate document to terminate the lease?
Notice of termination of lease

NOTICE OF TERMINATION OF LEASE

SMART INV. LTD

24th November, 2024.

To, Mr. Benson Owamani

P.O BOX 06

Wakiso – Uganda.

Dear Mr. Owamani,

Re: Notice of Termination of lease.


We refer to the lease agreement dated 23rd of November, 2024 (the "Lease Agreement")
between Smart Investments Ltd. ("the Lessor") and yourself ("the Lessee") regarding the
premises you occupy on the ground floor of Property located Volume MIT 6 Folio 10 at
Kagali- Kyankwanzi.

This serves as a formal Notice of Termination of the lease. You are required to vacate the
property and return possession by 25th December, 2024.

The grounds of the termination are;

1) Failure to pay rent for the premises on the 1st of January and 1st July, 2024 a breach of
the terms of the Lease Agreement. Specifically, the outstanding rent arrears amounts
to UGX 1,650,000# (One million six hundred and fifty thousand shillings)

As per the terms of the Lease Agreement, we are now formally notifying you that we intend
to exercise our right to re-enter the leased premises, thereby terminating the Lease Agreement
and removing your right of possession.

In light of the above, we hereby provide you with formal notice that as of 25th November,
2024, 30 days from the date of notice as prescribed by law. We will re-enter the premises,
and you are required to vacate the property immediately. This re-entry is being carried out
pursuant to the failure to remedy the breach as specified in the Lease Agreement.

Please note that the consequences of re-entry are as follows:

● The Lease Agreement will be terminated, and your rights to occupy the premises will
end.
● Any remaining goods or personal items left on the property after re-entry may be dealt
with as per the legal procedures outlined in the Lease Agreement and applicable laws.

We request that you make immediate arrangements to vacate the premises and return
possession of the property to us by 25th December, 2024. Should you fail to do so, we will
take all necessary legal action to remove you from the premises and recover the outstanding
rent arrears.

Please contact us at your earliest convenience to discuss any potential arrangements or


to clarify on any aspects of this notice.

We trust that you will comply with this notice.

Sincerely,

……………Gjjjhh………………….
KAGOYA BERNICE
COMPANY SECRETARY
Smart Investments Ltd.
Tel: 0415000000.
PART D

ISSUE 3. What are the steps Benson would have to take in seeking relief for forfeiture?
The remedy available for a lessee when a landlord has forfeited or re-entered the premises is
relief from forfeiture.

A lessee (who is Owamani in the instant facts) can exercise the right as provided under
section 25 of the Judicature Act, Cap that states that where a lessor is proceeding to enforce
a right of re-entry or forfeiture for non-payment of rent, the lessee, may in the lessors action
or action brought by himself or herself apply to the high court for relief.

However, there are conditions to be fulfilled for a lessee to obtain relief from forfeiture.

● The lessee must be willing and ready to pay outstanding rent and all expenses
incurred by the lessor.
In the case of Lugogo Coffee (U) Limited V Singapore Combined Coffee Growers (1973)
it was held that a breach of a lease conditions, entitles either party to avoid the contract.
Reentry is merely equity for security of rent and the lessee can pay the money and costs and
go for relief of forfeiture.

The application by the lessee is made to court by way of notice of motion according to Order
52 Rule 1 of the Civil Procedure Rules. It should be supported by an affidavit
as per Order 52 Rule 3 of the CPR.
The steps to be taken by Owamani Benson in order to seek relief would be as follows;
i) Move court by Notice of Motion to seek orders for relief against Forfeiture.
Section 25(1) Judicature Act Cap 16 provides for Petitioning of the High Court in
case a party to a lease agreement feels dissatisfied by the actions of the other
party.

ISSUE 4
What is the pertinent document seek relief for forfeiture?

Documents required.
1. Notice of motion.
2. Affidavit in support of notice of motion.
1. NOTICE OF MOTION

THE REPUBLIC OF UGANDA


IN THE HIGH COURT OF UGANDA AT KIBOGA
(LAND DIVISION)
MISCELLANEOUS CAUSE NO. 02 OF 2024

OWAMANI BENSON::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: APPLICANT

VERSUS

KYANKWANZI DISTRICT LAND BOARD::::::::::::::::::::::::::::: RESPONDENT

NOTICE OF MOTION.
(Brought under Section 25(1) Judicature Act Cap 16, Order 52 Rule 1 Civil Procedure Rules
SI 71-1, Section 98 Civil Procedure Act Cap 283)

TAKE NOTICE that this Honourable Court shall be moved on the 10th day of December
2024 at 10:00 0’clock in the afternoon or soon therefore as Counsel for the Applicant can be
heard on orders that;
a) The Applicant be granted relief against forfeiture for non-payment of rent.
b) b) Costs be provided for.

The grounds of the Application are set forth in the affidavit of Owamani Benson attached hereto
but briefly,
1) That the applicant undertakes to pay the Landlord the outstanding rent.
2) That the applicant undertakes to pay the Landlord any costs incurred and damages.

Dated at Kampala this 25th day of November 2024.

……………dddghfdbbff……………
COUNSEL FOR THE APPLICANT.

Given under my hand and the seal of this Honourable Court this 24th day of November 2024.

……………hfghgfjjjh……………..
REGISTRAR.

Drawn and Filed by;


F6 and Co. Advocates.
P. O Box, 06.
Lira- Uganda.
2. AFFIDAVIT IN SUPPORT.

THE REPUBLIC OF UGANDA


IN THE HIGH COURT OF UGANDA AT KIBOGA
(LAND DIVISION)
MISCELLANEOUS CAUSE NO. 02 OF 2024

OWAMANI BENSON:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::APPLICANT

VERSUS

KYANKWANZI DISTRICT LAND BOARD:::::::::::::::::::::::::::: RESPONDENT

AFFIDAVIT IN SUPPORT

I, Owamani Benson do solemnly swear as follows,


1) That I am a male adult Ugandan of sound mind whose address of service for purposes
of this application shall be M/S Firm F6 & Co. Advocates, [Link] 7117 Lira- Uganda,
a lessee and I swear this affidavit in that capacity,

2) That on the 14th day of November, 2024, I was evicted by the Respondent for non-
payment of ground rent.

3) That I undertake to pay the outstanding ground rent and to compensate the lessor for
any cost and damages suffered.

4) That this affidavit is made in support of the application for relief against forfeiture.

5) That whatever I have stated herein is true to the best of my knowledge and belief.

Sworn at Kampala this 24th day of November 2024.


By the said ……………ffghhfdggdd……………………
OWAMANI BENSON DEPONENT

BEFORE ME
…………………gddhvcd…………………….
COMMISSIONER FOR OATHS

Drawn and filed by;


Firm F6 & Co. Advocates
[Link] 7117
Lira-Uganda.
GROUP 3

ISSUES

1. Whether Benson can convert the lease acquired on title A to another tenure and if so,
what steps can he take to effect the same.

2. Whether Benson can convert the sublease he acquired on title B to a lease and if so,
what steps can he take to effect the same.

RESOLUTIONS

1. Whether Benson can convert the lease acquired on title A to another tenure and
if so, what steps can he take to effect the same.

For Benson to convert the lease acquired in table A which was acquired for purposes of
establishing a foreign company being owned by him and Jana Dunsta his wife, a German
national who contributed half of the capital, he will have to make sure that Jana Dunsta
acquires Ugandan Citizenship.

Article 12 of the Constitution of Uganda 1995 as amended provides for acquiring


citizenship by registration.

Section 14 (2) of the Uganda Citizenship and Immigration Control Act Cap, 313 provides for
citizenship by registration to a person not being a citizen of Uganda having gotten married to
Ugandan citizen for a period of five years or more upon proof of a legal subsisting marriage.

Jana shall therefore, apply to the board in writing in the prescribed form and the board shall
on proof to its satisfaction that the person has fulfilled the requirements in section 14, register
Jana as a citizen of Uganda.

This therefore means that Benson will be able to execute a sale agreement and a transfer
between him, his two wives and Daniel so that he can convert his lease into a private mailo.

Steps to be taken to execute a transfer between Benson, his wives and Daniel.

Step 1

Benson should execute a sale agreement to ascertain the consideration for which he is to pay
for the land, the mode of payment and other terms that will be agreed upon by the parties.

Step 2. Execution of transfer

Section 91 (1) of the Registration of titles Act provides that a proprietor of land may transfer
the same by a transfer in one of the forms in schedule 8 to the Act.

Subsection 2 provides that upon transfer, the interest, rights, powers and privileges belonging
to the transferor shall pass to the transferee.

Step 3. Registration of transfer.


Section 54 of the Registration of Titles Act provides that an interest in registered land can
only pass upon execution and registration of proper instrument.

This is done by submission of the photocopy of the duplicate certificate of title, signed
transfer form, passport photographs, sale agreement.

Step 4

These shall be presented to the valuation division for valuation assessment for stamp duty.
The applicant checks with the valuation division within a period of 3 working days to pick
the form and proceed to pay stamp duty and registration fees in the bank. Stamp duty is 1%
of the value of the land. Assessment for payment of registration fees is done by the respective
District cashiers.

Step 5

Benson should pay the fees to the bank, get receipt and the transfer form is embossed. The
documents shall be submitted together with the duplicate certificate of title, receipts and
photocopies of all documents to the mailo registry.

Step 6

The photocopy is stamped “received”. The applicant is asked to check after 10 working days.

Step 7

The applicant presents identification documents and the photocopies to collect the duplicate
certificate of title. The applicant signs for the title and a photocopy is stamped “returned” on
completion.

Section 59 of the RTA provides that a certificate of title shall be conclusive evidence of
ownership.

FEES

Stamp duty – 1% of the value of the land

Registration fees – 10000 UGX

2. Whether Benson can convert the sublease he acquired on title B to a lease and if so,
what steps can he take to effect the same.

Section 28(3) of the land Act cap 236 provides that any sublease held under a lease
converted to freehold shall be taken to be upgraded to a lease under the same terms,
conditions and covenants.

Smart investments limited acquired a lease on public land held by the Kyankwanzi District
land Board and sublet it to Benson.

For Benson to convert his sublease to a lease he should convince smart investments limited to
convert its interest to a freehold tenure in accordance with section 28 (1) of the Land Act so
that his interest can automatically convert to a lease as per section 28(3) of the Land Act.
This lease shall be subject to the terms conditions and covenants of leases.

Benson shall then acquire a leasehold title through the following steps;

Step 1

Benson must have in his possession fully completed form 8 and from 18, a set of 3 authentic
deed plans, 3 passport photographs, receipts of payment and a forwarding letter requesting
for a leasehold title signed by the district land Officer of Kyankwanzi.

Step 2

Benson shall then present the full set of original documents and a photocopy of the same to
the Department of Land Administration for checking. The photocopy is stamped “received”
and returned to the Applicant. The applicant (Benson) checks with the department of land
Administration after 10 working days to confirm the approval or rejection and is then given a
letter advising him of the fees to be paid.

Step 3

Once approved, the documents are forwarded to the Department of Land Registration for
preparation and issuance of lease agreements. The applicant checks after 10 working days to
pick up the lease agreements for signing and sealing by the chairperson and the secretary of
Kyankwanzi District land Board and shall pay stamp duty which is 1% of the premium and
Ground rent.

Step 4

Benson shall then present fully signed and sealed lease documents by the Kyankwanzi
District Land Board Chairperson and the secretary and lease agreements embossed by URA.
The applicant is then given a photocopy of lease agreements stamped “received.”

Step 5

Benson shall then present the photocopy given to him by the Department of land Registration
stamped “received” and identification documents on the collecting the leasehold title. Benson
shall sign for the title and the photocopy is stamped “returned” on completion.

FEES

1% of the premium and Ground rent is paid to URA


Registration fees – 10,000 UGX
Assurance of title – 20,000 UGX
Issuance of the title – 20,000UGX
Preparation of agreements – 20,000UGX

DOCUMENTS

Form 8
Form 18
THE REPUBLIC OF UGANDA

THE LAND ACT, CAP 227

THE LAND REGULATIONS, 2004

APPLICATION FOR A LEASEHOLD

FORM 8

PART I: (To be filled by the Applicant in triplicate)

Full name Sex Citizenship Marital status

Owamani Benson Male Ugandan Married

2: Address: Main street Lira, Uganda

Contact: +256 78872397

3: Location of land

a) Village/zone: …………………………Kagali-kyankwanzi…………………………..

b) Parish/Ward: ………………….Kagali...........................................................................

c) Sub-county/Division: ……………Singo………………..……………………………..

d) County/municipality: ……………………Singo…….……………………………..….

e) District: ……………………………Kyankwanzi………….………………………….

4: Approximate area (ha) ………1.3333.6980………………..……………………………..

5: Use or occupation of land (e.g. farming, housing, dwelling house)

……..…Farming………….

6: Name of Owners of Adjacent Land

…………………………………………………………………………………………………
……

…………………………………………………………………………………………………
……

7: a) Do you want to hold the land as Individuals? YES


Name and Signature/ Thumbprint of Applicant (s)

OWAMANI BENSON ………………owamanibenson……………….

Date of Application: 2th November, 2024

Part II: (for official use only)

A. Remarks and recommendations of area land committee

…………………………………………………………………………………………………
…………………………………………….

…………………………………………………………………………………………………
……………………………………………

…………………………………………………………………………………………………
………………………………………………

Name and signature of committee members

…………………………………………………………………………………………………
……………………………………………

…………………………………………………………………………………………………
………………………………………….

Date: 27th November, 2024

B. Decision of the District Land Board

i) The Application is approved/rejected/deferred

ii) The Application is approved upon the following terms and


conditions

…………………………………………………………………………………………………

…………………………………………………………………………………………………

iii) The Application is not approved due to the following reasons

…………………………………………………………………………………………………..

…………………………………………………………………………………………………..
iv) Minute number
…………………………………………………………………………
…………

OFFICIAL SEAL

… ………….……………………… ………………………………..

Name and signature, Secretary Name and signature,


Chairperson

District Land Board District Land Board

Date: 27th November, 2024


THE REPUBLIC OF UGANDA

THE LAND ACT, CAP 227

THE LAND REGULATIONS, 2004

FORM 18

Block: 32 Plot: 12

LRV: Folio: 4

To: District Land Board at Kyankwanzi District, Singo County, Block 32, Plot 12.

LEASE /SUB LEASE OFFER

(Kyankwanzi District Land Board)

1. The district land board is in receipt of your application dated 4th October, 2023 for the
above land located at Kyankwanzi District, Singo County, Block 32, Plot 12, and Owamani
Benson.

2. Subject to your obtaining any necessary approval or consent required by law, the board
has approved a conversion of a sublease to a lease in respect to the above land in a standard
form on the following terms and conditions subject to the act and the Registration of Titles Act
and to payment of the required fees.

a) Sublease for an initial /full period of...10...years from 1st December, 2024 and
an extension to...30...years.

b) Rent for the first…10…year(s) of lease shall be Uganda Shillings five hundred
thousand (UGX: 5,000,000/=) per annum payable three months in advance.

c) Building(s) of not less than Uganda Shillings one hundred million (UGX:
50,000,000/=) to be erected and completed fit for occupation and use to the
satisfaction of the board (lessor) within 15 years from the date if commencement
of the lease.

d) User to be restricted to………………Commercial ……………………………..

e) A premium of Shs: ………Ugx. 500,000………………………………..will be


payable

f) The lease/ sub lease shall include

i) A covenant that the lessee or sub lessee shall not, without the
consent of the lessor in writing, deal in anyway with his/her interest
in the land before the lease is extended to the full term of 30 years.

ii) A covenant that the lessee shall insure the building(s)


3. Consent to transfer or assign or sublet shall not be considered until the commercial use
covenant has been fulfilled, expectations may be made to the executors or administrators
of a deceased lessee.

4. The offer is conditional on the terms and conditions of the lease being accepted within
forty five days of the date of this offer.

5. Acceptance shall be in writing to the commission and shall be accompanied by the


following payments.

i) Premium………………Ugx. 15,000,000……………………….

ii) Survey and mark stones …………..Ugx. 500,000………………

iii) Preparation of the lease……………Ugx. 1,000,000..……………

iv) Assurance of the title …………..Ugx. 500,000………………….

v) Registration of a lease …………..Ugx. 500,000…………………

vi) Issue of certificate of title …………..Ugx. 500,000……………...

vii) Rent from 1st December 2024 to 1st march 2025 payable after the
survey.

Total Shs: …………Ugx. 18,000,000…………

Less deposit paid (if any)

Ugx. 5,000,000….……………..

Balance payable (if any)

Ugx. 13,000,000………………

6. Stamp Duty payable will be indicated on the draft lease agreement

7. The offer is subject to land being available and free from disputes at the time of
survey.

8. Minute number……KYZ.DLB20/024(08)(a) of 20th November, 2024…………

This offer is made this day 25th day of November, 2024.

…………………………………………………….
Name and signature
Secretary, District land Board.
PART F

Issues

1. What option does Benson have to create an access road to his land?

2. What forum, procedure and document is appropriate in the circumstance?

RESOLUTION OF ISSUES

1. What option does Benson have to create an access road to his land?

Access to a public road

A public right of way is not an easement because the right is dedicated to the entire public
irrespective of connection to any dominant land and thus an easement enjoyed by the public is
unknown to law as held in Makumbi and another v Puran Singh Ghana and another [1962]
EA 331.

Section 2 of the Roads Act cap 346 defines right of way to mean the right to use a public road.

Under section 2 of the Roads Act an access road means a public or private road affording
access to a public road to a high way.

It is important to note that the order to construct an access road on another person’s land is
normally granted where there’s no other way by which the applicant or grantee can access the
public highway except through the land of the respondent or grantor who is another land owner.

Article 43 of the Constitution of the Republic of Uganda provides that, in the enjoyment of
the rights and freedoms described in the constitution no person shall prejudice the fundamental
or other human rights and freedoms of others or public interest while enjoying their rights.

Section 72 of the Land Act provides for rights of way where it states that all land, whether
alienated or unalienated, shall be subject to all existing public rights of way which shall be
reserved to and vested in the Government on behalf of the public; and all such rights of way
shall be maintained by the public uninterrupted unless they are terminated or altered by the
direction of the Minister in writing.

In Sengabi v Nakiyingi Civil Appeal No. 59/2018 [2019] court noted that the creation of an
access road is a matter of law or negotiations of the parties.

Section 59(2) Roads Act; where a road or portion of a road or any land has been designated
and acquired as an access road, a person shall not without written approval from a road
authority construct, use or allow the use of an entrance way or gate which or part of which is
connected with or opened upon the access road.

Section 60 of the Roads Act, 2019 provides for leave to construct access road through private
property.

It provides that,
(1) Where the owner of any land is unable, through negotiations, to obtain leave from adjoining
landowners to construct an access road to a public road, he or she may apply to the Minister
for leave to construct an access road over any land lying between his or her land and the public
road.

There must have been failure of negotiation. Section 62(1) of the Act provides that the owner
of the land should be unable to obtain leave from adjoining land owners through negotiation to
construct a road of access to the public road.

(2) The Minister may, in consultation with the relevant road authority, grant leave to construct
an access road.

(3) The minister shall, before granting leave to construct an access road under subsection (2),
ensure that an applicant compensates the adjoining landowner. In Ahmed Dauda Ziwa &
Anor v Kafumbe Anthony HCCA No. 33/2012 court stated that such compensation should
conform to Article 26 of the Constitution and should also take into account the loss of the
land itself.

(4) An application under subsection (1) shall be in a manner prescribed by regulations. In this
case minister means the minister for roads.

Mugisha Stephen v Karugaba Yostasi HCCS LD 050 of 2013. Held; The objective of the
Access to Roads Act, as is stated in the long title, is to provide for procedure by which a private
land owner who has no reasonable means of access to a public highway may apply for leave to
construct a road of access to a public highway and for other purposes connected with that.

Therefore, we must write a formal letter to the minister responsible for roads for leave to
construct an access road over the neighbors land.

Procedure to access the road

1. Negotiation with neighbors/landowners to construct an access road


2. Application to the Minister for leave to and construct an access road.

An application to the Minister of Works and Transport shall be made through a formal letter
and shall clearly state:

a) The request of the applicant and the details pertaining to the land.

b) The fact that the attempts to negotiate were frustrated.

c) Attach a plan of the proposed access road.

d) And the applicant is willing and ready to compensate the land own
ISSUE TWO.

What forum, procedure and document is appropriate in the circumstance?

OUR REF: F6/23/24 23rd November, 2024.

F6 & Co. Advocates,


Room 2, 1st Floor,
Law Development Centre, Lira
P.O. Box 06, Lira,
Uganda.

TO: The Minister of Works and Transport (MoWT),


Plot 57-59 Jinja road,
P. O. Box 7174, Kampala, Uganda.
Attn: Honorable Minister Gen. Katumba Wamala.

Dear Sir,

RE: APPLICATION FOR LEAVE TO CONSTRUCT AN ACCESS ROAD.

We act for and on behalf of our client Benson with instructions to address you as here under: -
,

This is an application for grant of leave to construct an access road under Section 60 of the
Roads Act, cap 346.

Our client is the registered proprietor of land comprised in Wakiso Block 321 Plot 164,
Busaku. Our client has on several occasions tried to initiate negotiations with the adjoining
landowner comprised in Wakiso Block 321 Plot 163, Busaku with intention of obtaining leave
to construct an access road but he refused to talk to him.

In the circumstances, we humbly request your good office to exercise its power under the above
law and grant our client leave to construct an access road to the public road through the
neighbor’s land on such terms as you shall determine such that this right to the same is not
prejudiced. (A draft plan of the proposed access road is attached hereto.

Yours faithfully

…......mrashiwanje……….
F6 & Co. Advocates,

C. C. Our Client.
GROUP 4

Brief Facts

Benon has legally acquired property. He started operations of the hospital of property B which
the ministry of health could take over in pursuit of putting a functional hospital in every sub-
county. The ministry intends to compensate Benson instead of building a new facility in the
same area. Benson is opposed to the development and has complained to the RDCof
kyankwanzi District.

Legal Issues

1. Whether government can compulsorily acquire land from an individual

2. What is the procedure the government can follow to lawfully acquire the land?

Law Applicable

1. The Constitution of the Republic of Uganda, 1995, as amended.

2. The Land Act, Cap. 236

3. The Land Acquisition Act, Cap. 235

4. Case Law

Resolutions

Issue 1

In Uganda, land belongs to the citizens of Uganda. This is enshrined under Article 237 of the
Constitution of the Republic of Uganda, 1995, as amended.

Article 26(1) Provides that, ‘Every person has a right to own property, either individually or
in association with others.’

Article 26(2)(a) of the Constitution of the Republic of Uganda, 1995, as amended, ‘No person
shall be compulsorily deprived of property except where the taking of possession or acquisition
is necessary for public use.’

In the case of United Assurance Co. Ltd. –Versus- Attorney General, Civil Appeal No. 1
of 1986, court defined the phrase ‘public interest’ to mean only public purpose involving
specific use, active or passive as such providing facilities and infrastructure that ensures safety,
security, and common welfare.

The Constitution is however to the effect that the right to own property is not non-derogable
and can be limited within the meaning of Article 43 of the Constitution of the Republic of
Uganda, 1995, as amended.
Section 43 of the Land Act, Cap. 236 provides that, ‘The government or local government
may acquire land in accordance with Articles 26 and 237(2) of the Constitution.’

Article 237 (2)(a) of the Constitution of the Republic of Uganda, 1995, as amended,
‘Notwithstanding clause (1) of this article, the government or a local government may, subject
to article 26 of this Constitution, acquire land in the public interest; and the conditions
governing such acquisition shall be as prescribed by Parliament’.

Article 26(2) of the Constitution of the Republic of Uganda, 1995, as amended, ‘No person
shall be compulsorily deprived of property or any interest in or right over property of any
description except where the following conditions are satisfied;

a) The taking of possession or acquisition is necessary for public use or in the


interest of defence, public safety, public order, public morality or public health;

In the case of Amooti Godfrey Nyakaana –Versus- NEMA and others, Constitutional
Appeal No. 5 of 2011, court stated that an analysis of the provisions of the constitution
(Articles 20, 237, 242 and 245) pints to principles that although one has a right to own land
through any of the systems of land tenure listed in the constitution, there may be situations
which necessitate government either to take over the land or regulate its use for the common
good of all the people of Uganda. This is what is referred to as compulsory acquisition of land.

ISSUE 2

What is the procedure the government can follow to lawfully acquire the land?

In the case of Ross –Versus- Commonwealth of Australia and others (1986) LRC (Const)
292, the court stated that compulsory acquisition of land by the government should be made
under the law and according to the procedure provided by the law.

Compulsory acquisition of land, also known as eminent domain, is the process by which a
government can seize private land for public purposes, such as infrastructure development or
public services. For this process to be fair, transparent, and just, there are several key principles
and actions governments should follow; these include:-

1. Legal Clear Framework


The government must have a clear, transparent legal framework that outlines the specific
circumstances under which land can be acquired. This framework should be consistent with
constitutional rights and international human rights standards.

2. Public Purpose Justification/Declaration by Minister


The government must demonstrate that the land is being acquired for a legitimate public
purpose, such as infrastructure development, public utilities, or environmental conservation.
The public benefit must outweigh the private interest being taken.
Section 2(1) of the Land Acquisition Act, Cap. 235 provides that whenever a minister is
satisfied that any land is required by the government for public purpose, he or she may, by
statutory instrument make a declaration to that effect.

Section 2(2)(a), (b) and (c) of the Land Acquisition Act, Cap. 235 provides that an instrument
made under subsection 1 shall specify the location of the land to which it relates;

i) The approximate area of the land;

ii) If the plan of the land has been made, a place and time at which the time may be inspected.

Section 3 the Land Acquisition Act, Cap. 235 provides that the minister shall cause a copy of
every declaration to be served on the registered proprietor of the land specified in the
declaration or, as the case may be, if the proprietor is not the occupier of the land, on the
occupier.

3. Marking out the land

Section 4 of the Land Acquisition Act, Cap. 235 provides that, ‘On the publication of a
declaration under section 3 in respect of any land, the assessment officer shall cause the land
to be marked out and measured and the plan of the land to be made if a plan of the land has not
already been made’.

4. Fair Compensation/Inquiry and Award

A core principle of compulsory land acquisition is that the landowner should receive fair and
adequate compensation. Compensation should reflect the market value of the land, including
any potential future developments, losses incurred due to displacement, and the emotional or
social impact on the owner.

Section 6(4)(a), (b) of the Land Acquisition Act, Cap. 235 provides that, ‘Where an
assessment officer makes an award under this section in respect of any and, he or she shall
cause a copy of the award to be served on the minister and those persons having an interest in
the land as are present personally or by their representatives when the award is made; and,

Subject to subsection 5, the government shall pay compensation in accordance with the award
as soon as may be after the expiry of the time within which an appeal may be lodged.

5. Transparent Process

The process should be open and transparent, with clear information about the reasons for the
acquisition, the amount of compensation being offered, and the rights of the landowner to
contest or appeal the decision. There should be no arbitrary or discriminatory actions in the
process.

6. Consultation and Public Participation/Notice to Persons with Interest

Governments should engage in consultations with affected landowners and communities early
in the process. This can include providing opportunities for input or objections, and ensuring
there is a fair process for resolving disputes or concerns. Affected communities should be given
a chance to propose alternatives or modifications to the acquisition plan.
Section 5(1) of the Land Acquisition Act, Cap. 235 provides that, ‘as soon as may be after the
publication of the declaration in respect of any land, the assessment officer shall cause notice
to be published in the gazette and exhibited at convenient places or near the land, stating that
the government intends to take possession of the land and claims to compensation for all
interest in the land can be made to him or her.’

In the case of Uganda Electricity Board –Versus- Luande Stephen Sanya, Civil Appeal
No. 1 of 2000 UEB, destroyed trees, crops and made survey marks without the consent of the
land owner, emphasised that UEB could not enter on any person’s land without first acquiring
and paying compensation. It must also give notice to the person who attached to this land before
taking it and therefore his actions amounts to trespass. According to section 5 of Land
Acquisition Act, Cap.235 the notice shall give the particulars of the land and shall require all
persons having n interests in the land to appear before the assessment officer on the day and
time specified in the notice in order to state the following;

a. The nature of their respective interest in the land

b. The amount and particulars of their claims to compensation of their interests

c. Their objection if any to any plan of the land made under section 4

7. Adequate Relocation and Rehabilitation

If the land acquisition results in displacement, the government must ensure that affected people
are provided with adequate relocation options, compensation for loss of income or livelihood,
and rehabilitation support to help them transition to their new circumstances.

8. Taking Possession

Section 7(1) of the Land Acquisition Act, Cap. 235 empowers the assessment officer to take
possession of the land as soon as he or she has made an award under section 6.

However, it should be noted that, as seen in the case of UNRA –Versus- Irumba Asuman &
Peter Mangelah, SCCA No. 2 of 2014, the Supreme court declared this provision a nullity to
the extent to which it does not provide for prior payment of the compensation before
government takes possession of any one’s land, therefore, this possession under Section 7 is
subject to Article 26(2)b)(i) after prior prompt payment of fair and adequate compensation

9. Timely and Efficient Process

The process should be carried out in a timely manner to minimise disruption to the affected
parties and ensure that public projects are not unnecessarily delayed. Legal and administrative
hurdles should be addressed promptly.

10. Right to Appeal


Affected landowners should have the right to appeal the decision or the amount of
compensation in a court or independent tribunal. This ensures that there is an impartial review
of the acquisition process.

11. Environmental and Social Impact Assessment

Governments should conduct thorough environmental and social impact assessments to


understand the broader effects of land acquisition. This can help ensure that the public purpose
truly outweighs the private harm and that alternatives are considered where possible.

In conclusion, the government can acquire and take over Benson’s Hospital as a health facility
comprising Plot 12, Block 32, Singo County, Kyankwanzi District; however, for the same to
be effectively achieved, the government should follow the above stated procedures.

Common questions

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Ugandan law protects the right to access roads through private lands through the Roads Act, which allows landowners who cannot negotiate access to apply for leave from the Minister to construct access roads. The Minister must ensure the applicant compensates the adjoining landowner for the loss of land. There must be a failure of negotiations before such an application can be made. The process is guided by the Land Act and requires clear demonstration of the need for access, ensuring fair compensation and compliance with human rights standards .

Consultations and public participation are vital to ensure fair and just land acquisition processes in Uganda. The legal standards stipulate that affected landowners and communities should be engaged early, with opportunities to raise objections or propose alternatives. This approach mitigates disputes, aligns with constitutional mandates, and promotes transparency, ensuring decisions are made with public input and that compensation is justified and clear to all affected stakeholders .

In Uganda, public interest is a pivotal factor in the land acquisition process, as the government is mandated to demonstrate that any land to be acquired is for a public purpose, such as infrastructure or public utility projects. The public benefit must outweigh the private loss resulting from the acquisition. This mandate ensures the acquisition aligns with constitutional rights and upholds public welfare over private interests, necessitating transparent procedures and fair compensation .

Failing to pay rent within the stipulated period in a lease agreement allows the lessor to terminate the lease through forfeiture. If rent is unpaid for 30 days or if any lease covenants are breached, the lessor can re-enter and take possession of the property without a formal demand for payment, provided a 30-day grace period for remedy has passed .

The legal remedy available for lessees facing lease termination through forfeiture in Uganda is to seek relief from forfeiture. This remedy allows the lessee to apply to the court to have the forfeiture set aside if certain conditions are met, typically involving remedial actions to rectify the breach or negotiate terms with the lessor .

Section 102(b) of the Registration of Titles Act, Cap 240, allows a lessor to initiate lease termination due to a lessee's breach, such as failure to pay rent for 30 days. It grants the lessor the right to repossess the property without a formal demand if the breach is not remedied within the grace period, essentially allowing for re-entry and recovery of possession as a remedy for the lessor to enforce lease terms .

To effectively terminate a lease due to default by the lessee, the following steps should be taken: (1) Provide a written notice of demand, specifying the breach such as unpaid rent, though this isn't mandatory as per Section 102(b) of the Registration of Titles Act, Cap 238. (2) If the default continues after a 30-day grace period, issue a formal notice of termination stating that the lease is being terminated. (3) The lessor can then re-enter and take possession of the property if the default is not corrected. (4) The recovery of possession should be recorded by the registrar in the Register Book .

To terminate a lease in Uganda, a Notice of Termination of Lease is the required document. This document must include the lease agreement reference, specific breaches such as unpaid rent, a formal statement of intention to re-enter and terminate the lease, the deadline for vacating the premises, and the consequences of re-entry. Clear communication and offering a timeline for the lessee to vacate are crucial components of the termination process .

The Ugandan legal framework ensures fair compensation in compulsory land acquisition through several mechanisms: (1) Landowners should receive compensation reflecting market value, including potential future developments and losses due to displacement, as outlined in Section 6 of the Land Acquisition Act, Cap. 235. (2) The process must be transparent and involve consultation and public participation to ensure landowners have a fair chance to propose alternatives. (3) Adequate relocation and rehabilitation support must be provided, ensuring compensation follows constitutional rights and human rights standards .

For the Ugandan government to lawfully acquire private land for public use, it must follow a clear legal framework: (1) Demonstrate the acquisition is for a legitimate public purpose, such as infrastructure development. (2) Provide notice to the affected parties and engage in consultation. (3) Compensate the landowners fairly and adequately. (4) Follow a transparent process, not involving any discrimination or arbitrariness, as outlined by the Land Acquisition Act, Cap. 235 .

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