Nyakabungo Town Council in Kanungu District has taken legal action challenging the procurement process through which the Nyakabungo-Rugyeyo Weekly Market Vendors and Operators Association was selected to collect revenue from the Nyakabungo Weekly Market.
The dispute centres on the procurement process conducted by Kanungu District Contracts Committee and, in particular, the valuation or reserve price attached to the tender.
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According to the information before the dispute, the Association submitted a bid of Ugx 33 million before the closing date of 19th June 2026 and it was subsequently declared the best evaluated bidder and was awarded the tender at Ugx 36 million on 29th June 2026.
However, Nyakabungo Town Council raised concerns regarding the procurement process, arguing that the reserve price contained in the procurement documents was higher than the amount at which the tender was ultimately awarded.
The Town Council’s position is that the reserve price was approximately Ugx 52 million, and that the procurement process should have taken this figure into account.
The Chief Administrative Officer of Kanungu District Abudhala Awuye subsequently halted the signing of the contract following the complaint by Nyakabungo Town Council.
The matter has now moved into a legal process, with the Nyakabungo Town Council seeking the intervention of court over what it considers irregularities in the procurement and award of the tender.
The Association, on the other hand, had been identified as the best evaluated bidder and was listed among successful bidders in an announcement made by the District Contracts Committee.
There was also a subsequent temporary arrangement under which the Association was permitted to operate the market despite the contract-signing process having been halted.
The application before court is expected to bring into question whether the procurement process complied with the Public Procurement and Disposal of Public Assets legal framework, including the applicable procurement regulations.
The Court will ultimately determine the legality of the decisions being challenged and the appropriate remedies, if any and until the matter is determined, the allegations contained in the application remain allegations and should not be treated as established facts.
