The motivation for the study was the challenge in the delivery of solid waste and sanitation services in Kampala city due lack of appropriate equipment by formal and informal service providers who use very old vehicles for transportation of solid and liquid wastes to secondary collection points and/or to disposal sites. The main objective of this study was therefore to assess the potential of leasing equipment as an innovative financing mechanism for sustainable solid waste and sanitation services in Kampala. The researcher conducted field work in Kampala by collecting data from officials of leasing companies, equipment suppliers and the secretary of the Kampala Cesspit Emptiers Association through use of interviews. The researcher also collected data from officials of Kampala City Council as well as formal and informal solid waste and sanitation service providers by use of questionnaires. The data collected by the researcher was clustered into frequencies of responses for each category of respondents and analysed. The researcher also analysed secondary data from respondent organisations. The findings of the study show that equipment leasing has the potential as a financing mechanism for sustainable solid waste and sanitation services. The findings also show that leasing is not used by service providers because the solid waste and sanitation market is not developed due to failure of KCC to play the role of regulator. There is potential for commercial viability which can be unblocked through proper regulation of service provision so that service providers and leasing companies find reason to invest in solid waste and sanitation equipment. The researcher concludes that Kampala City Council, service providers and leasing companies have to work together in order to make leasing a useful financing product for the purchase of solid waste and sanitation equipment. It is however important to acknowledge that promoting leasing for its own sake does not make leasing an attractive equipment financing option; a developed solid waste and sanitation market is a key driver for the development of leasing products for service providers as well as solid waste and sanitation equipment markets. The researcher recommends use of smart subsidies such as Out-Put Based Aid in urban sanitation service delivery, developing a leasing product for solid waste and sanitation service providers, leasing of equipment and managing it based on management contracts, allowing for long term solid waste and sanitation contract periods and improving the regulation, promotion and marketing of solid waste and sanitation services. The researcher recommends further research on how the legal and regulatory framework that recognises the role played by informal service providers in service provision should be provided so that they are recognised by leasing companies and also researching more on how to improve the regulatory role of Kampala City Council in the delivery of solid waste and sanitation services.

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Brilhante, O., Post, P.
hdl.handle.net/2105/12080
Institute for Housing and Urban Development Studies

Katongole, I. (2007, September 17). Equipment leasing as a financing mechanism for sustainable solid waste and sanitation services in Kampala, Uganda. Retrieved from http://hdl.handle.net/2105/12080