Mbarara District council has resolved to tender out Kakyeka Stadium to a private investor to boost the local revenue. Currently, the district collects 12 billion shillings annually as local revenue which according to the councilors is inadequate to fund district activities.
The decision was passed on Tuesday during a council sitting at the district headquarters in Kamukuzi. Joseph Arinaitwe, the district councilor representing Workers and chairperson of the Finance committee said that tendering the stadium at 50 million shillings will supplement the district coffers.
He said the committee recommended that the contractor pays 30 million Shillings cash and he uses the balance of 20 million to renovate the perimeter wall.
Saverious Tumuheirwe, the District Councilor for Rwanyamahembe Sub County said that the district was struggling to raise enough local revenue since the creation of new three new Town councils noting that creating new revenue sources will improve service delivery.
The District Speaker Venance Munanukye said that the stadium was poorly managed, which explains why inadequate funds were collected from events hosted at the stadium. He said that the stadium would raise less than 3 million annually from concerts, Trade-shows, and crusades.
Edward Kasagara, the Chief Administrative Officer told the council that there is a process to follow to tender out something noting that since the motion was approved a process to tender the stadium was to begin.
But Didas Tabaro, the LCV Chairperson suggested that the government valuer sets how much the tenderer will pay the City.
In 2017 Mbarara District developed a plan to renovate the dilapidated stadia with support from the Central Government but due to a lack of funds, the plan was shelved.
The stadium usually hosts various District, Regional and National sports competitions.