Studios (Mizigo) offer better investment returns than bigger houses

Studios (Mizigo) offer better investment returns than bigger houses

By Denis Jjuuko

One of my former landlords used to brag that she builds her houses like she would live in them. That if she didn’t fancy the house herself, she wouldn’t rent it out. Her houses are very spacious and although she doesn’t do as much as she promises, at least she tries. I have also met many people with similar views. They build houses for rent as if they will ever live in them. They spend on a lot of stuff that those who rent won’t really treasure like expensive chandeliers and polished porcelain.

A lot of times, rent is determined by the number of bedrooms and of course the location. A two bedroom house that is so spacious may not be rented at a much more rate than one that isn’t so extravagant. When I lived in my landlord’s so spacious houses, I was paying the same amount others were charging in that part of Kampala. So technically, the other guys were making more money than my landlord because in Kampala, residential houses aren’t charged per square feet. Actually, there is much more money in smaller houses than big ones. This is because unless your house is in one of those top suburbs, you will get very low returns. Even in the top suburbs, apartments are coming up.

It is cheaper to live in an apartment than a stand alone house in its own perimeter wall as that comes with extra costs such as security and garden maintenance. On an apartment block, there are many tenants that it may not be easy for thieves to break in like it is in a house in its own perimeter wall that you lock and go away.

The other issue with big houses that may not be in Kampala’s exclusive suburbs is that those who occupy them have more financial needs than people who live in small apartments. If you rent a big house, you most likely have a big family. And nobody will pay rent ahead of school fees for the kids. So the landlord becomes secondary. People who live in apartments especially the smaller ones don’t have as much financial needs or don’t consider themselves to have them.

So rentals that are meant for one person (studios) and one bedroom ones have much more returns than those that are three bedrooms or stand alone houses. This is because they attract bachelors who recently got their first or second job and eager to leave their parents or guardians’ homes. Their money is for them to enjoy and once in a while contribute to social causes. They have no problem paying six months rent in advance. In some parts of Kampala, a one bedroom apartment is charged a small percentage lower than a two bedroom flat. Studios charge as much as one bedroom apartments.

Such people also keep houses in better conditions as they have no kids to spoil the walls and plumbing. If it is a girl, she may even spend weeks without sleeping there as she may be having a boyfriend where she spends more time. Such people don’t usually use charcoal to cook. So houses are kept in good conditions as opposed to those that attract families.

In fact, there is more money in single rooms commonly referred to as Mizigo than the fancy apartments people like to build. They cost less to put up and aren’t kept empty for months if one tenant left. The people who can afford them are many and they don’t make outrageous demands like Kampala’s ‘corporate class’! Of course owning them may not make you become the most admired guy at your social club but as a business, they offer good returns. The only challenge with them could sometimes be management as a tenant may leave at anytime. So a lot of times a manager is necessary to put them in line.

So this may not be an option really for established real estate owners as they may be building for other reasons such as prestige and self actualization. If you are starting out and you want to make a quick return on investment, the Mzigos or at worst studios offer better alternatives. And the beauty with studios is that if the location is accessible, you can quickly turn them into lodges and/or list them on AirBnB for those interested in short term stays.

The writer is a communication and visibility consultant. djjuuko@gmail.com

Not standing up to the powers that be over the $750 Million will be part of Mutebile’s legacy.

By Moses Nekyon via UAH

What he (Mutebile) forgets is that a person can be fired for only one decision. Not standing up to the powers that be over the $750 Million will be part of his legacy.

If I as a laymen could question the pricing of the 6 jets; which should have not cost more than $350 Million, how about him as Governor?

The Bank of Uganda (BOU)as an institution ‎does not lend money to individuals or companies. It’s relates only to other Banks or Financial institutions.

How is it possible for almost $140 Million being lent to a company (Haba) that exports Hides and Skins?

Someone pulled a fast ‎one us all, because I am yet to find a Hides and Skins company in East Africa or Africa in general that can generate or warrant that kind of money.

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By George Okello via UAH forum

Is it not brazen corruption or highway robbery going right up to Mr Museveni himself? Why would any central bank lend $140 million to a private company? A central bank is not a commercial or investment bank that can lend money. A central bank is the financial arm of any economy, its role is to mainstain fiscal discilpine, harmonise monetary policy and supervise financial institutions. It can lend money or guarntee borrowings by financial institions like commercial banks etc but it is totally unheard of for any central bank anywhere in the world to lend money to individuals. It is regarded as a very serious act of indiscpline and monetary folly for any bank governor to authorise any such lending. What makes it even very difficult to fathom is that Mr Museveni, in his personal capacity, because the articles of presidency do not allow him to issue illegal or criminal orders to any public official, orders Mr Mutebile to lend Mr Bassabababalba such a huge sum of money. This crook would never have been able to borrow such a huge sum of money from a normal lending institution eg commercial bank or investor. because the money was not lent on usual commerical terms, it had no guarantor or security so it was on the personal guarantee of Mr Museveni that the bank could lend such a huge sum of money. Dont you see this is not just sheer incompetence or naivette but wilful corruption?

Secondly, why would the central bank be directly involved in the purchase of military jets to the tune of $740 million? Why would any central bank governor lend even just one dollar to a private company, even if there is an emergency, or war situation?The purchase of these jets was not budgeted for, so the Ministry off Defence did not have it in its annual spending round. Parliament was not aware of it and was generally kept in the dark, again in breach of the law, both constitutional and criminal. What should have happened is, as soon as Mr Museveni recognised an urgent need for military jerts, he should have instrcuted his Ministry of Defence to put such an urgent remeasure before the Ministry of Finance so that an urgent Supplementary Request would be submitted to parlaiment for approval. As an urgent measure, this should not take long to go through the parliamentary process. The expenditure having been approved by parlaiment, the whole deal would then be passed on to the Government Procurement Directorate ( either the natioanl one in the Ministry of Fianance, or the one in the Defence Ministry) to carry out the tendering exercise and then final purchase of the military jets. All of these would not involve Mr Museveni as President, because I am assuming the Procurement Directorate employs competent and honest people.

As it is, Mr Museveni by-passed all of the above normal procedures for procurement of governmenet materiel and/or services and got directly involved. he decided to ignore all the government offices, preferring to handle such a potentially huge contract almost as if if it was his own private purchase, as if he was buying his underwear or nappies from the super-market. I am aware, the military market is very complex and competitive and is heavily populated by crooks, so a government like the one in Uganda will often need external advice as the people employed for military procurement often do not have the expertise or knowledge of the market. The UK Ministry of Defence advises many governments of its former colonies on defence procurement: Even though they may end up recommending purchase of British products, but atleast they will give a professional assesment of the military value of the proposed purchase as well as its cost, so the potential buyer has an accurate view of the market and the actual cost of the intended purchases. Transpareny International also now advises African governments on major purchases, including purchase of arms. The African Union, in collaboration with the African Development Bank, has set up a specialist Contract Advisory Unit, made up of eminent lawyers and allied professionals to advise African governments on major purchases and international agreements they may want to engage in. So why did Museveni not take advantage of these instititions if not because he wanted to engage in a corrupt deal?

This fact is borne out by the fact that the British Minsitry of Defence said at the time that the 6 jets Museveni bought for $740 million could have been bought from its own Defence Procurement Unit for $450 million. Transparency International said the same 6 jets could have been bought from Ukraine for $180 million if all the middlemen men were cut off. In otherwords, a government that exercised due diligence and acted in the national interests could have saved the Uganda treasury at least $500 million

Kampala authorities should copy the London Model of Bus Services!

A bus in central London

By George Okello via UAH forum,

I have a suggestion that would help solve the matata and boda boda menace on Kampala streets. Why can we adopt the London model where all transportation services, apart from taxis, and centrally controlled by the Mayor and provided by the London Transport Authority? If London allowed any bus company to operate on its streets, this would create chaos of unimaginable proportions. As it is all transport companies have to apply for a tendered contract to run bus services on specific routes.All the contractors work under the flag of the London Transport Authority. They have very strict regulations, as to fares, time tables, reliability, conduct etc.

If we had Kampala Transport Authority, it would award contracts to about 5 companies to operate on agreed routes. Like the LTA in London,we would subject these contractors to very strict performance outcomes, relating to over-crowding, time table, health and safety, standard fares etc. No other transport operators would be allowed on
such routes so the contracted companies have the advantage of a reliable income while the passengers have the quid pro quo of a relaible service with controlled fares.

Matatus and boda bodas should be restricted to 15 miles of the perimeter outside Kampala and must not be allowed inside the city perimeter because there would be busese operating services every 5-10
minutes.

Alternate streets should be made one way streets to reduce traffic congestion and speed up bus transportation. Cycle Lanes should be opened alongside these lanes.

A Congestion charge should be imposed on all other private vehicles, so that every private car enterring the 10 mile perimeter of the City would have to pay a charge of $10 between 7AM-7PM. In turn, about 4 huge parking stations would be opened outside of the city to provide parking space for private cars.

Such a policy would ease traffic congestion, reduce the number of cars on the streets, reduce the number of fatalities on the streets, be environmentally friendly and save the city from massive pollution.

But the government would have to be serious with its implementation.

MUSEVENI KILLS UGANDA AIRLINES; BOOSTS RWANDA AIRLINES

BY SARAH NALUKENGE VIA UAH FACEBOOK GROUP

“……..our Banyarwanda comrades stayed here as refugees for 34 years (1960 – 1994). We gave them all the support we could afford…………through Rwanda Airlines, Uganda is currently contributing about US$24.1M to the prosperity of the people of Rwanda.”

Museveni addressing a cabinet retreat at the Institute of Indoctrination – 26/7/2016

Uganda’s aviation industry dates to the early 1930s when the first flying boat landed around Port Bell on Lake Victoria near Kampala city. Its mission was to deliver mail – a service that had started in Kenya by Wilson Airways and proved to be a vital intercommunication tool in the region’s colonial centers. In 1947 Entebbe was identified as being suitable for Uganda’s future international airport and in 1951, a new Entebbe International Airport was inagurated by the Queen of England. Uganda Aviation Service and United Airways were set up and after independence it became a subsidiary of Uganda Development Corporation (UDC).

Following the collapse of the East African Community (EAC) in 1977, the then President Iddi Amin started the Uganda Airlines from scratch because Kenya had taken all the planes and routes. By 1978, Uganda Airlines had acquired a fleet of 15 fully owned by the government under Uganda Air Cargo. It plied the domestic, regional and international routes to London, Rome, Cologne, Cairo, Brussels and Dubai. It had been created as a strategic entity with the aim of mitigating the impact of sanctions imposed against the Iddi Amin regime and its landlocked Uganda – a task if effectively fulfilled. The 1978/79 war to oust Iddi Amin from power heavily impacted on its operations. After his overthrow its role was changed to profit making but it lacked the technical backup and capitalisation from government.

Its survival depended only on ground handling services and to a lesser extent on royalty fees from third party carriers for designated routes. The ground handling services that covered air cargo, passengers and aircraft handling operations generated 65% of the revenue. Under the guise of privatisation, in 1994, the Civil Aviation Authority (CAA) by an act of parliament. In mid 1990s, Museveni awarded the ground handling services to his in-law and permanent Minister of Foreign Affairs, Sam Kuteesa. Since then ground handling services for Entebbe Airport is handled by Kutesa’s private company called Entebbe Handling Servicesa (ENHAS). With loss of its vital source of revenue in form of ground handling services, Uganda Airlines which had accumulated a debt of US$ 6M was liquidated in 2001.

By destroying Uganda Airlines, Museveni was extending his wider scheme of destroying whatever had been started by past regimes which he accuses of mismanaging Uganda. More so, he was trying to economically disable those Ugandans more especially those hailing from those regions he considered were politically linked to the past regimes that he had fought and replaced. After over two decades since the death of Uganda Airlines, last month Museveni told his cabinet that lack of a national airline was “a big shame” before criticizing Kenya, Ethiopia, and South African “brothers” for ditching the comradeship and instead opting to exploit Ugandans. He promised to set up a national airline – Uganda Airlines Corporation.

Will Rwanda afford to loose the US$24.1M contribution from Uganda through its Rwanda Airways? An uneducated military dictator in Iddi Amin who faced sanctions managed to build a booming national airline and an educated military dictator in Museveni destroys it!!!!

OIL: SELFLESS LEADERSHIP REQUIRED ON THE LIMITED RESOURCE

Yesterday I received an invitation to an international Oil symposium scheduled for 23rd March in Dubai. The theme is “Financing Projects in New Oil Era”, and discussants will be the finance heads of the major oil companies from the six gulf states (leading national corporations like SABIC, RTA, ORPIC and KPC).
These are also the big project sponsors in their respective countries.

Uganda has been blessed with the precious resource. Oil reserves are estimated at 6.5 billion barrels (though only 1.4 billion barrels are said to be extractable).

Hopefully these are reliable figures. The difference 5.1 billion barrels is substantial. If the entire collective national resource is being claimed by one individual, he/she will be offloading historic amounts of state finances into his/her personal Swiss bank account.

Proper accountability increases management proficiency on budget deficits and unblocks significant sources of finance for national projects. Including pre-financing facilities where banks can make funds available even before the resource is extracted.
This approach requires restraint and selfless management lest nations scramble irresponsibly for the funds from the resource.
In the US, the worlds leading oil producer, they extract 13 million barrels per day (International Energy Agency report).
A quick calculation shows that they deplete the equivalent of Uganda’s entire oil reserves every 500 days.

By Hussein Lumumba Amin
03/03/2016

M7’S BEST JOKE HAS BEEN ‘MY OIL’, RIGHT???

If what people say about M7 and his greed for oil proceeds is true, then Museveni must be desperate on what to do next because every passing day drives a dividing wedge between him and oil; he is getting older by the day and even if nothing political drove him away, he would still leave the oil.

His only close habitation with the oil is a few feet when he is buried 6ft x 4ft which is not enough contact with the vast oil fields deep down, kilometres away. So, what happens to the oil?

No, I think the president should not make references to the country’s resources because they outlive him. He should be doing his best to mentor people who will continue to manage the national resources rather than making pronouncements that he cannot allow people to come to mismanage his oil, which actually is not his and in any case,if people decide to play a waiting game, he will be found fast asleep forever leaving the oil.

Sometimes I think he did not say it, may be he was misquoted by journalists who seem to find difficulty hearing and understanding what he says (sometimes he speaks in tongues) which makes them write different stuff from what he said; remember he is always quoted out of context?

SIMON PETER OKURUT VIA THE UAH FORUM

WHY PRESIDENT MUSEVENI WANTS AMURU LAND

By Okot Nyormoi, March 13, 2015

In January 12, 2015, a land agreement was signed between the government, Madhvani, Amuru Community leaders and lawyers who drafted the agreement. The signing of the agreement touched off a storm of opinions ranging from outright rejection to complete acceptance. Since the dust has now settled down a bit and the focus has shifted on Apaa, it is time to reflect on why people reacted to the agreement the way they did.

To appreciate the variety of opinions, it is important to understand the context in which the Amuru land agreement was negotiated and signed. There were competing interests including the President of Uganda, the Madhvani Sugar Estate, the Amuru Communal Land Owners and political parties. Since for a variety of reasons, the process leading to the signing of the Amuru land agreement was not completely transparent and because the signing of the agreement was deliberately staged in Rwakatura of all places, it could not escape from arousing intense suspicion and scrutiny.

Ordinarily, government is supposed to build and maintain infrastructures such as roads, medical facilities, schools, electricity, governance etc. However, for over 20 years northern Uganda witnessed the complete opposite. The NRM government marginalized the region in every way possible including war, looting of livestalk, incarceration of up to two million people in horrendous conditions in concentration camps, and misappropriation of funds intended for rehabilitation and reconstruction. When the NRM took over the government, President Museveni was reported to have vowed to teach the people of northern Uganda a lesson they will never forget. This is what appears to have given birth to marginalization of the north.

History informs us that this marginalization appears to be rooted in what President Museveni penned in his thesis in 1971 at the University of Dar-es-Saalam.

“To transform a human being into an efficient, uncostly, and completely subservient slave, you have, as a pre-condition, to completely purge him of his humanity, manhood, and will. Otherwise, as long as he has some hope of a better, free future, he will never succumb to enslavement. To become an efficient instrument of oppression, you have to radically de-humanize yourself by forgoing many qualities that are normally found in balanced human beings. You purge yourself of compassion, altruism, consideration of other people’s suffering and the capacity to restrain your greed….”.

Amuru very much mirrors the situation that the young Museveni envisioned in 1971. Having created conditions of abject poverty coupled with police restricted political freedom to organize, the Amuru community is rendered extremely vulnerable. Under such conditions, land vultures are convinced that Amuru communal land is ripe to be had. The NRM government tried different tactics to grab as much of the land as possible. It used the military in the 1987 forced evacuation of the land in the name of security, deception by General Salim Saleh’s 2003 proposed Security and Production scheme and the fraudulent allocation of 40,000 hectors of land to Madhvani for a sugar estate. Furthermore, the government via the Wild Life Authority used force to chase people off their ancestral land in Apaa. Government is also using the Ministry of Land and Urban Development to redraw the boundary between Amuru and Adjumani Districts allegedly to accommodate land sales to foreign investors. However, the Amuru community with the support of other communities found the resolve and strength to resist all these schemes to grab their land under the pretext of paying big money in land sales and promises of bringing quick developments to the under-developed area.

While the community’s resistance to the whole sale land grab has slowed down the process, a new political development has emerged since the NRM/A bush war of the 1980s. During the 5 year bush war, the NRA/M derived its support from southern and western Uganda. In contrast, because of the war, northern and eastern Uganda did not support the NRM government. However, as unfulfilled promises soared in the south and west, the NRM government began to lose substantial parts of its political support. Besides, when the Lord’s Resistant Army (LRA) relocated itself away from the north and east, it removed the element of fear that the government was using to extract support from the south and west. As a result, the 2011 election, as revealed by the likes of General Sejusa, the NRM lost to FDC, but was stolen by massive rigging by the NRM government.

The 2011 election sounded an alarm to the NRM government that it can no longer rely on the west and Buganda for holding onto power. Although the NRM government expected a massive support from the north and east as an alternative to Buganda and the west when the shooting war ended, it was disappointed by the low support it got in the 2011 election. Nevertheless, even if it is assumed that the NRM can always claim victory by bribing and rigging elections, the larger than life ego of the leader remains unsatisfied. It is still yarning for acceptance by people from the north and east, which so far has been justifiably denied.

Another important motivation for acquiring Amuru land is what may lie beneath the surface. It is believed that there is oil and other minerals in Amuru. Therefore, the scramble for large tracks of land may be fueld by the black gold and other minerals.

The government push to secure land for the sugar estate in Amuru is now being driven by both oil as well as a shift in the political fortune of the NRM government. This is why the government has adopted a somewhat softer approach. For example, it accepted to abide by the court injunction against any forceful eviction of people from Apaa in Amuru District, albeit temporarily. It also agreed to delay the construction of the Madhvani sugar estate pending the outcome of the court appeal of the 2012 ruling lodged by the Amuru land owners.

In spite of the softer approach, it is not hard for the people to see why the government is pushing so hard to secure the land for the sugar estate. As they say, bad habits die hard. The President has once more applied deceptive divide-and-rule tactics to extract an agreement. First, during the negotiation, the government announced plans to survey the land as if it was already a done deal, long before the community negotiators had a chance to report to the community. Expectedly, this backfired because it showed bad faith.

Worse still, the government employed a divide and rule tactic to lure 3 out of 5 community leaders to sign the agreement before negotiating the details of the conditions under which the land is to be provided for the sugar estate. Consequently, it raised the questions of legitimacy of the agreement. It is by knowing the political history of the NRM government that one can appreciate why President Museveni is pushing so hard to acquire large tracts of land in Amuru District.

By resisting land grabbing, the people of Amuru are showing President Museveni that they still have hope for a better and free future and that they will never succumb to enslavement. True and sustainable development can only occur with the consent of the people, not by force.

The tragedy unfolding in Libya has consequences beyond Libya and Africa

Folks:

The tragedy unfolding in Libya has consequences beyond Libya and Africa for that matter. I hope the Italian security services are screening those boat migrants because word out is that the ISIS monsters have released criminals and mixed them with their sympathisers and given them access to Europe. Yes for every ten people one could be an ISIL mole planted to go to Europe and cause damage. So if Italian and European security agents fail to do a thorough interrogation things could soon very bad in Europe. In plain English, ISIS is using boat migrants to transport its members to European capitals to cause havoc.

What ISIS is doing is similar to what Fidel Castro did during the Mariel boat ride. He emptied Cuban jails and gave safe passage to criminals to Miami. Find out what happened in Miami after. Crime skyrocketed as rape and murder hit the roof.

On as serious note it is time for African countries to put together strong military force to go and stabilize Libya. The rebels could only win with NATO bombing. Talk about a solution to problem gone terribly wrong. Egypt, Algeria, Tunisia and some Sub Saharan African countries need to come up with a 20, 000 strong force to go and liberate Libya before it goes the Iraq way. If Liyba became another Somali, things could very bad in the region so time to act.

Italy in particular and Europe in general may very son rue their actions in Libya. The genie is out and the monsters have their sights on Italy on the water. ironically, it is mostly Italy rescuing them and taking them to Europe. Notice how they operate mingle with genuine refugees. Well Italians will very soon find out the fruits of their scheme to bring democracy to Libya.
Please do not answer but think about how many sleeper monsters have made their way to Italy as refugees to be activated at a later date.

Talk of a moral dilemma facing Italy.

WBK via the UAH forum

THE DARKNESS ON AND AFTER EBB AIRPORT IS RATHER ANNOYING!

Outside Ebb airport at night

As we live in these well lightened cities and towns, we start to get afraid of the dark. There is nothing that frustrated my children in Uganda as the dark in Uganda. And it is built on we go to Uganda to expect the worse for that is the reputation Uganda has built its self. Very bad accidents that should not have happened, but they surely do happen. Bad murders that should not have happened but they surely do happen. But Ugandans have reached this silliness of posting may he/she rest in peace of firkin daily without being enraged on why did this individual die? Look only last week how many prominent Ugandans have died? But do you see any one out raged? No they all simply say may he/she rest in peace. Now how many porojos actually die out there? So we go in counting days of my God when do we get out? At the speed that is driven on Entebbe road, tight as that road is, security conscious as that road is, littered escorts as that road is, given a simple fact that for some very unknown reason most of the international flights into and out of Entebbe are in the night, the entire span of Kampala Entebbe needs to have lights.

Darkness on Entebbe road

Forget the powering of Entebbe airport but the entire Entebbe Kampala span needs street lights. When you land at night you are driven into the dark and see sheer death coming at you in the dark, when you are flying out you are driven to Entebbe with your back crack open for you have no idea who is going to smash into your car and he is going to smash into it when you are not seeing him. I made it a habit to arrive into Entebbe at 6pm and sit it out to my midnight flight out. But there is nothing to do in Entebbe, so this summer I am going to do exactly what I did last trip, drive out of the zoo a day before my international flight, for I need a psychological settling before I take off than being that hyped when my flight is this long. If Ugandans put lights on Entebbe Kampala road it will increase the passengers into EBB, we are very scared of the dark.

MULINDWA EDWARD VIA THE UAH FORUM

TORONTO

Traffic Noise is Dangerous for Your Health

Traffic noise is the second biggest environmental problem in the EU, according to WHO. After air pollution, noise is affecting health the most.Most of us are not aware that cars today produce as much noise on the outside as they did 40 years ago. However, heavy vehicles have become somewhat quieter. The number of people exposed to noise pollution in our cities remains high. Traffic noise is today linked to stress-related health problems such as stroke and heart disease.

Excessive noise damages thousands of cells in the ear leading to an immediate loss of hearing, which happens in explosions and wars. Constant exposure to noise may lead to a gradual damage of the cells and a gradual loss of hearing. Deafness may even result from a bullet fired or an explosion.Records on workers in Sweden indicate that many are exposed to loud machinery noise daily. About 5,000 people suffered hearing loss in 1973 and the figure rose to 16,000 in 1977. An official report of the Environment Affairs Council in US issued in 1970 indicated that about 16 million industrial workers faced the risk of losing their jobs due to the weakness in their hearing abilities.

The fetus floats on fluids that protect it from jerking movements, but barely from noise. It can hear internal sounds (the mother’s heart beat, the movement of the intestines, and the air in her lungs) as well as external sounds (the mother’s voice and any surrounding sounds or voices). Studies indicate that the fetus experiences muscular spasms if the mother is exposed to excessive noise.