Kampala Capital City Authority-KCCA has earmarked Shs 10.2 billion to pay out compensation resulting from litigation in the 2018/19 financial year.
The money will take about 83 percent of the Shs 12.19 billion budget allocated to the KCCA Legal Directorate, according to the institution’s Ministerial Policy statement.
KCCA says hefty compensations are a big challenge to the institution. They arose from various civil suits filed against the former Kampala City Council as it then was.
During the first half of the 2017/18 financial year, KCCA spent Shillings 3.95 billion on compensations to third parties.
The KCCA acting Treasury Director, Julius Kabugo, recently revealed that Shs13 billion was withdrawn from the KCCA bank accounts in 2017 on garnishee court orders. A garnishee order is a legal notice the court issues that allows the creditor to collect the amount from the debtor’s bank account.
