The National Social Security Fund (NSSF) is set to recover 55 acres of land in Temangalo, Wakiso District, after businessman Amos Nzeyi agreed to surrender the property, ending a dispute that has lasted nearly 18 years.
NSSF Managing Director Patrick Ayota told Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) on Wednesday that the two parties had reached a new agreement under which Nzeyi would hand over the land to the Fund.
Ayota said the latest understanding means NSSF will recover all the 55 acres instead of pursuing an earlier arrangement that required Nzeyi to provide 10 acres of alternative land and buy back the remaining 45 acres at the prevailing market price.
“Two days ago, what we’ve agreed… is going to give us back all our land, all the 55 acres of land that we have. The exercise we have to undertake is to do a survey so we know exactly where the 55 acres of that land is,” Ayota told MPs.
Although Nzeyi has agreed to surrender the property, Ayota said the arrangement had not yet been formally signed. He promised to submit minutes of their latest meeting, endorsed by both parties, as interim proof of the agreement. A formal document is expected to be signed within the next couple of weeks.
Before taking possession, NSSF will conduct a fresh survey to establish the exact boundaries of its property. The land currently occupied by Nzeyi, which includes his residence and paddocks, measures about 58 acres.
Ayota said the Fund would only reclaim the 55 acres covered by its land title, while any additional land outside the title would be handled separately.
He also ruled out further compensation to Nzeyi, saying NSSF had already paid for the property and legally owns it. The only expenses expected are those related to surveying the land and reopening its boundaries.
The dispute dates back to March 2008, when NSSF bought approximately 463.87 acres from Nzeyi and Arma Limited for about Shs11 billion. The Fund intended to use the land for a housing development.
However, a Memorandum of Understanding signed as part of the transaction allowed Nzeyi to retain about 104.88 acres, including his farmhouse and paddocks, on condition that he would give NSSF alternative land of equivalent value within six months.
The arrangement was never fully implemented, forcing the two parties into arbitration in 2013.
The arbitration award upheld the proposed land exchange, requiring Nzeyi to provide alternative land of equivalent value that was suitable for NSSF’s planned development and free from any legal claims or restrictions.
However, subsequent assessments found that only about 10 acres of the alternative land offered by Nzeyi met NSSF’s requirements, leaving the remaining 55 acres at the centre of the dispute.
