Zupco wins reprieve as Bulawayo halts depot repossession

Public transport operator Zimbabwe United Passenger Company (Zupco) has successfully appealed against the repossession of its Bulawayo depots after convincing the local authority that it is making meaningful progress in settling outstanding arrears and maintaining operations at the sites.

According to the latest council report, the City of Bulawayo is set to rescind its July 2025 resolution to repossess the remainder of Stand 2200A, including Lot 4 and Lot 5 of Stand 2200A and Subdivision C of Stand 2200A at Khami Depots, as well as Stand 13724 Kelvin North.

The properties accommodate Zupco's garages, workshops and offices and had been earmarked for repossession after the company failed to settle outstanding arrears, a condition attached to the renewal of its lease agreements.

In May 2021, council resolved to renew Zupco's leases for the sites for a further 10 years, subject to a review and full payment of outstanding arrears before the agreements could be signed.

However, the renewal process stalled after the company failed to clear the outstanding balances.

Council issued reminders in June 2024 and February 2025 requesting Zupco to finalise the lease agreements. After the second reminder, the company sought negotiations on a payment plan.

The local authority subsequently resolved in July 2025 to repossess the properties and reallocate them to other interested parties.

In its appeal, Zupco argued that its operations were of national importance.

"Zupco is a public company and its occupation and use of the premises in question is of national interest. The anticipated repossession is therefore against the national interest," the company said.

The operator also highlighted that it has occupied the facilities for more than four decades.

"The period within Zupco has been in occupation of the premises in question is in excess of forty years ought to have been taken into account before deciding to repossess the same," it argued.

Zupco further stated that it had invested in maintaining the facilities and intended to continue operating from the premises.

A site inspection by council officials found limited activity at the Kelvin depot and no significant renovations at either site, contrary to some of the company's claims.

Nevertheless, council acknowledged that Zupco had demonstrated a commitment to retaining the properties.

The report noted that the company had cleared outstanding arrears on Stand 13724 Kelvin North and had removed old buses from the depots to create space for new additions to its fleet expected in the near future.

Zupco also submitted a commitment letter dated April 27, 2026, undertaking to pay US$2,000 every week towards clearing outstanding balances across all accounts.

Council records show the company has already made an initial payment of US$2,000 towards arrears on Lot 4 of Stand 2200A and has continued making weekly payments in accordance with its undertaking.

The Town Planning Department indicated it had no objection to the appeal, provided lease conditions are met and all relevant council departments support the application.

The Valuation and Estates Branch also supported the appeal, citing Zupco's demonstrated willingness and capacity to settle its debts.

However, council rejected the company's application to purchase the Khami Depot, recommending instead that it be granted new 10-year lease agreements for both the Kelvin North and Khami properties.

According to the Financial Services Department, Zupco still owes more than US$52,000 across five accounts, with the largest outstanding balance amounting to US$22,812.96.

The Allocation of Stands and Premises Committee has recommended that council rescind the repossession decision, renew the leases for a further 10 years and grant Zupco six months to clear the outstanding arrears on the Khami properties.

The committee also recommended that all outstanding balances be settled before the lease agreements are signed.