NSSF Initiates Government Office Campus Project.

The National Social Security Fund (NSSF) has announced the commencement of a government office campus project, aimed at contributing to Uganda’s economic development through profitable real estate ventures.

The project involves constructing a comprehensive office complex for ministries in Bwebajja, a suburb of Kampala. Located on at least 48.5 acres off the Kampala-Entebbe highway, the development includes re-designating the surrounding area as a special planning zone. The implications of this re-designation for residents remain unclear.

The project also encompasses the redevelopment and expansion of J&M Hotel and Apartments, a facility acquired by the Government from a private investor. On Thursday, July 22, NSSF invited firms to submit bids for consultancy services covering design and construction supervision for the office campus. The campus will feature 200,000 square meters of developed area and 150,000 square meters available for lease.

Interested consultancy firms must submit their bids by August 13, with the shortlist of prospective firms to be announced on August 27. These firms must demonstrate experience in similar projects, having completed at least two assignments in the past five years involving large civic developments, office campuses, or business parks on a minimum of five acres.

J&M Hotel, already housing several government offices including Operation Wealth Creation, will undergo a revamp to accommodate the new project. The hotel was initially funded by the Government for the 2007 Commonwealth Heads of Government Meeting in Kampala, receiving 2.4 billion shillings for construction. However, it was not completed in time for the event. The hotel’s owner, James Behakanira, passed away in 2010, leading to financial difficulties and the Government’s subsequent acquisition of the property from his widow, Mary Goodra Behakanira. A 2019 assessment revealed that 70% of the hotel premises were condemned, prompting the planned redevelopment.

For over a decade, the Government has been seeking a permanent home for its ministries, departments, and agencies to reduce rental expenses. In 2017, discussions with NSSF began to establish a government campus to cut down on the 96 billion shillings spent annually on office rent. Under the proposed deal, NSSF would finance the project through an ‘indirect loan’ to the Government, which would be repaid from ministry allocations over time.

A 2012 parliamentary study revealed that 75% of government offices were rented, with rental expenditures rising from 3 billion shillings in 1999/2000 to 28 billion shillings in 2011/12. Major spenders included Parliament, the Judiciary, and the ministries of Finance, Justice and Constitutional Affairs, and Local Government.

The initiative to construct the office campus is part of a broader government strategy to merge and streamline state institutions, aiming to reduce redundancy and save nearly 1 trillion shillings. Of the 157 institutions reviewed by Cabinet, 61 will be retained, 33 will be reintegrated into parent ministries, and 96 will be merged or streamlined.