VOL. NO: 51      DATE:
 

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AFRICAN ECHO BUSINESS NEWS
Complied by Cass Gilroy-Business Editor

Uganda Sugar Corporation in land crisis over lease agreements

The Sugar Corporation of Uganda Ltd is facing a crisis after some landlords refused to renew their land lease agreements. The corporation, owned by the Mehta's group of companies, has applied to take over part of Mabira forest reserve for the cultivation of sugarcane.

The Mehta's group is increasingly facing the withdrawal of land it has held over the years under the estate estimated to cover about 11,000 acres at Lugazi.

"I withdrew the land three years ago. The corporation was not willing to revise the agreement and their offer could not exceed sh300 for an acre," said Ssenseko Kulubya, one of the landlords.

Another landlord, chris-topher Mayengo, revealed that the corporation’s offer has discouraged land owners from entering into fresh deals. The proposed takeover of Mabira forest has caused uproar, with civil society organisations insisting that the corporation enter into agreements with land owners within Mukono.

 

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