In 2000, KCC came up with a policy requiring all markets in Kampala to be modernised. Initially, KCC intended to construct the markets and rent them to traders.
However, due to lack of funds, the city authority opted to lease out market construction to investors, with the first option going to vendors. Vendors pay market dues and ground rent to KCC, which collects the money through a contracted firm.
Rhino Investments offered to team up with traders to redevelop the market. Consequently, rival factions of traders, one led by Robert Kisembo and another, by Samuel Ssekibenga, fought over who should redevelop the market.
Rhino was working with Ssekibenga, which caused fear in the Kisembo camp that there was a plot to force them out of the market.
On November 3, 2006, Ssekibenga’s group, under New Nakivubo Road Market Vendors Association, applied to KCC to redevelop the market. Rhino Investments and the traders claimed they planned to inject over sh13b into the project.
Kisembo’s group accused Ssekibenga of bringing Rhino Investments, owned by Col. John Mugyenyi (retired) on board, without their consent.
Riots ensued after KCC, the then local government minister, Kahinda Otafiire and the Kampala RDC at the time, Stanley Kinyatta, appeared to have given Ssekibenga and Rhino a go-ahead to redevelop the market.
The frightened traders, many of them battle-hardened veterans, were not ready to let go.
Ssekibenga claimed to have the backing of most of the 680 stall owners, while Kisembo was backed by mainly casual mechanics who do not have stalls. Rhino Investments even paid the requisite premium to KCC, meaning that it would be difficult for the other vendors under Kisembo’s group to recover the market. It was President Museveni who saved the situation when he offered to compensate Rhino Investments for having paid a premium and allowed the traders to redevelop their market.