MINISTRY of Local Government and Rural Development Permanent Secretary for Administration Maambo Hamaundu says the Lusaka City Council has not increased property rates by 300 percent but has merely proposed it.

He adds that people can still object to the proposal.

Various stakeholders, including the Zambia Association of Manufacturers (ZAM), have expressed concern over what they term as arbitrary increases in council fees and rates by municipalities.

In a statement, Monday, ZAM president Ashu Sagar said the actions were imposing a significant burden on businesses already navigating a challenging economic environment.

“The Zambia Association of Manufacturers (ZAM) expresses its deep concern over the recent arbitrary increases in council fees and rates by municipalities, particularly in Lusaka. These actions are imposing a significant burden on businesses already navigating a challenging economic environment. Reports from our members in Lusaka highlight dramatic hikes in rates and valuations, in some cases tripling previous charges. Similarly, in Mazabuka, a steep rise in cane levies from K0.4 per tonne to K25 per tonne has been reported, further exemplifying the financial strain caused by unregulated fee adjustments. These increases have been implemented without transparent consultation or a clear justification, exacerbating financial pressures on manufacturers and other businesses. While local authorities are within their rights to periodically review fees, ZAM is alarmed by the lack of corresponding improvements in service delivery,” he said.

“Businesses and residents in Lusaka continue to face substandard municipal services, including irregular waste collection, poor road maintenance, insufficient street lighting, and ineffective zoning enforcement. These gaps highlight the disconnect between fee adjustments and the actual value provided to stakeholders. Key concerns: 1. Cost of doing business -unchecked increases in council rates drive up operational costs, reducing Zambia’s competitiveness and stifling economic growth. 2. Service delivery gap -businesses should not be compelled to pay higher rates without a proportional improvement in services. Rates are meant to fund essential municipal functions, yet many businesses end up self-financing critical services such as waste management and security. 3. Lack of stakeholder consultation – decisions with significant financial implications must involve robust stakeholder engagement. The absence of meaningful consultation undermines trust and leads to inequitable outcomes”.

Sagar urged the councils to suspend implementation of the new rates.

“ZAM urges the city councils to: 1. Suspend implementation of new rates – halt the enforcement of increased fees and valuations until comprehensive consultations are conducted with affected stakeholders, including business associations. 2. Audit service delivery – conduct an independent audit of municipal services to ensure that fee adjustments are tied to measurable improvements in performance. 3. Adopt a phased approach -implement any necessary adjustments gradually to avoid overburdening businesses and communities. The success of Zambia’s economy relies on a cooperative and mutually beneficial relationship between businesses and local councils. ZAM remains committed to engaging with the Lusaka City Council and other municipalities to address these pressing challenges and work towards sustainable solutions that support economic growth while ensuring accountability in service delivery,” sated Sagar.

In a separate statement, Monday, Zambia Institute of Valuation Surveyors president Christopher Mulenga supported public sentiments that the Lusaka City Council’s proposal to increase rates by 300 percent was unreasonable.

“As the matter is now generally in public domain, the Zambia Institute of Valuation Surveyors (ZIVS) feels compelled to dispel any insinuations that the proposed rates increase, which has been estimated in some instances to be over 300 percent is as a result of very high property assessments by the appointed valuation surveyor. Property valuation is a highly technical discipline/science that is carried out by highly qualified and trained individuals, who have gone through not only rigorous training but have passed a well-designed Assessment for Professional Competence Programme in line with the law that governs Valuation Surveying in Zambia. Hence, we advise that any leaseholder who wishes to object against a valuation entry in the roll of any local authority in Zambia should always seek the services of a registered valuation surveyor, as provided for under Section 17(g) of the Rating Act,” stated Mulenga.

“We also support the public sentiments that the proposals by the Lusaka City Council to increase rates by such high percentages is unreasonable and contrary to basic considerations in as far as local government taxation is concerned. We can only appeal to the Rating Valuation Tribunal to reject the proposed rate levy as being too high and contrary to principles of taxation. Instead, they should adjust the proposed poundage rates downwards in order to enable the leaseholders to pay property rates in tandem with the prevailing economic situations”.

Meanwhile, in an interview, Monday, Hamaundu clarified that the increase was merely a proposal and that those opposed to it could raise objections.

“Do you know that the Ministry does not necessarily need to be consulted on such activities? And secondly, I think that Lusaka City Council has not increased the rates, it’s important to know that. It has not increased the rates, there is a proposal to increase the rate so the consolation that is there [is that] all concerned parties can table this matter because I think they had submitted a valuation of inspection and comments. So these matters will still have to go through a process of adjudication. So, there is no increase in the rate,” said Hamaundu.

“There may be an increase but it may not even be as proposed by Lusaka City Council because all these have to be subjected to…they have to be looked at from different angles. And essentially, the ones who make the award is the tribunal. So, there is just a proposal, it’s important that the public is aware that this is a proposal. It is also important that the public, those who feel that this amount is too high or it is ridiculous they can object. Government, through the local authorities, we are obliged to listen to the concerns of any objectors through the local authorities and indeed eventually through the tribunal, who will then make a final determination”.