In a significant development, the African Development Bank (AfDB) has halted funding to the Kampala Capital City Authority (KCCA) due to lapses in environmental and social safeguards. The decision, communicated in a letter dated December 2023, underscores the urgency for KCCA to address compliance issues promptly.
The letter, addressed to Permanent Secretary Ramathan Ggoobi, cited KCCA’s failure to implement agreed-upon remedial actions, resulting in the project’s performance being deemed “unsatisfactory.” Among the concerns raised was the absence of an environmental specialist, creating a critical gap in oversight.
Furthermore, KCCA’s acquisition of rights of way lacked transparency and adherence to statutory requirements, with consent agreements found to lack full disclosure. Additionally, the delay in releasing funds for compensation and resettlement further exacerbated compliance challenges.
The suspension of funding presents a significant setback for KCCA, highlighting the imperative of adhering to environmental and social standards in development projects. Immediate corrective measures are needed to restore funding and mitigate potential delays in ongoing projects.
As KCCA grapples with these compliance issues, stakeholders await its response to the AfDB’s decision, underscoring the gravity of the situation and the urgency for swift action.
