By Mike Rwothomio

Paidha Town Council’s Finance Committee in Zombo District, has raised serious concerns over widespread rental defaults by tenants at the bustling Paidha Central Market, warning that persistent non-payment is undermining local revenue targets and the financial viability of the council’s market infrastructure investments.

Presenting the committee’s report during a recent council session, Finance Committee Chairperson Pascal Kumakech expressed disappointment at the low compliance rate.

Out of more than 80 tenants operating lock-up stalls, only around 10 have fully met their rental obligations in the current financial year.

“There is a deliberate effort by some tenants not to remit rent due to the council,” Kumakech stated, calling for an urgent mindset shift among market operators.

He recommended that defaulting tenants be issued notices to vacate, allowing compliant businesses ready to pay to take over the stalls.

Lydia Musango, Vice Chairperson LCIII of Paidha Town Council, echoed these concerns and urged swift action. “Even as we speak, there are willing payers ready to occupy these stalls. Those unwilling to pay should vacate immediately,” she said.

Revenue Growth

Since 2022, Paidha Town Council has made significant capital investments in modern market infrastructure, constructing over 30 lock-up shops aimed at strengthening own-source revenue and improving service delivery.

 However, council leaders warn that mounting rent arrears threaten to erode the expected returns on these upgrades.

The council recorded local revenue of UGX 577.7 million in FY 2022/23, rising to UGX 589 million in FY 2023/24, and further to UGX 602.8 million in FY 2024/25 , reflecting improved infrastructure and higher transactional volumes.

LCIII Chairperson Innocent Godfred Onega commended compliant local businesses for their tax contributions, noting that timely remittances have enabled key service delivery and infrastructure transformation.

He appealed to the business community to support the council’s development agenda through consistent rent and tax payments.

Tenants speak out

A tenant who preferred anonymity said, “It’s true that some of us have struggled to pay, but the council should know that business is not as usual. Things are tough for us here. At times, you can stay the whole day without earning even Ugx 10,000.”

Another tenant urged the council to subsidise the Ugx 50,000 rent fee, noting that it is too expensive given the poor business performance in recent times.

Ongoing Market Modernization

In a continued drive to enhance revenue generation and modernize trading facilities, the council is nearing completion of an additional eight modern lock-up shops at a cost of UGX 112.9 million. The project, fully funded by locally generated revenue, was awarded to Blue Moon Technical Services Limited on February 17, 2026.

A section of Paidha Central market.

Upon completion, the total number of modern lock-up units at the market will rise to 58.

Onega assured affected vendors that the new shops will be reallocated to previous occupants of demolished structures, subject to formal application.

William Okello, Secretary for Works and Transport, described the developments as a lasting legacy, urging sustained investment in visible infrastructure projects.

The latest phase builds on earlier upgrades, including the 2023 commissioning of 30 modern retail units supported by the United Nations Capital Development Fund (UNCDF).

The council has also introduced protective shade structures for open-air vendors.

Widely known as the “food basket of West Nile,” Paidha Central Market serves as a major regional trading hub, drawing vendors from West Nile, northern Uganda, and eastern Democratic Republic of Congo.

The market handles high volumes of agricultural produce, including matooke, avocados, beans, maize, dried cassava, coffee, Irish potatoes, and sweet potatoes.

Despite notable progress, some sections of the market still feature aging mud-walled structures and leaking roofs dating back to the 1980s.

Chairperson Onega described the phased modernization program as a vendor-growth and revenue-enhancement strategy.

With Paidha’s population exceeding 40,000 and its strategic location near the DR Congo border, the market remains central to small-scale entrepreneurship and regional supply chains.

Council leaders continue to appeal for full tax and rent compliance to sustain infrastructure development and service improvements in this business-oriented town semi-autonomous lower local government unit refered by many as " the face of Zombo District"

Pascal Kumakech, Chairperson finance committee Paidha town council

Mike Rwothomio is the News Editor at Zoomer Africa, your trusted grassroots information hub for African stories, voices, and updates.