Assessing the effect of service charge on the tenancy of shopping malls in Kampala

Abstract

Knight Frank, (2021) stated GDP growth to be 2.9% for financial years Period 2019 to 2020. The Retail industry which comprises shopping malls, arcades whose average turnover was largely affected. Year to year turnover figures reduced on average by 20% and an increase in 8online trade accounting for 20% of retail as a result of Covid 19. Closure of anchor tenants in shopping malls in 2020 such as Game, Shoprite and Tuskys supermarkets which could be partially attributed to high rate of service charges. In RICS(2018),the new government Code recognizes that the RICS Professional Statement on Service Charges in Commercial Property provides the best practice for the industry is to work to with its stated aim to promote best practice, uniformity, fairness and transparency in the management and administration of services charges in commercial property for the benefit of all parties. The Code recognises that the current position places a huge burden on all parties’ occupiers and owners and RICS encourages all parties to work together on a case-by-case basis to recognise these challenges and create an approach that is proportionate and appropriate for each set of unique circumstances. The absence of regulations on service charges in the Landlord Tenant Bill of 1979 of Uganda has caused speculations and exorbitant tendencies among landlords. Majority of commercial properties in Uganda have unclear and unfair methods of apportioning service charges causing it to be exaggerated on top of the high rental charges which frustrates tenants causing a decline in the demand for rental spaces