The Kongwa District Council has announced a new monthly rental fee of TZS 20,000 for business stalls at Kongwa Bus Terminal, Post Office and Market areas as part of efforts to streamline stall ownership and strengthen local revenue collection.
The announcement was made by Kongwa District Commissioner Mayeka S. Mayeka during a meeting with stall owners and traders at Kongwa Education Hall, where he explained the legal framework governing ownership and use of the facilities.
Mayeka said that under Land Acts No. 4 and 5, the legal ownership of the business stalls remains with the Government through Kongwa District Council, while individuals who constructed or developed the stalls are regarded as tenants with rights to compensation for their investments.
He said the previous monthly rental fee of TZS 5,000 was no longer in line with current economic conditions, prompting the review of the charges to TZS 20,000 per stall per month.
Under the new arrangement, 70 percent of the rent, equivalent to TZS 14,000, will go to the Kongwa District Council to boost local government revenues and finance development activities.
The remaining 30 percent, or TZS 6,000, will be allocated to individuals who constructed the stalls as compensation for their investment.
The District Commissioner said implementation of the new rental structure will begin after a valuation exercise is conducted on each stall to establish the value of the structures and ensure a fair compensation process.
“We will assess the value of every stall before signing new agreements to ensure fairness for all parties. Once compensation for construction costs is completed, the stall developers will become official tenants and will pay the full monthly rent of TZS 20,000 directly to the District Council,” Mayeka said.
Traders who attended the meeting welcomed the clarification, saying the issue of stall ownership had caused confusion for years due to limited understanding of land ownership regulations.
They said the new agreements would provide clearer ownership arrangements while enabling the council to increase revenue collection and support development projects in Kongwa District.
