Kampala City festival, the biggest two day annual festival in Ugandas capital has been cancelled.

Kampala Capital City Authority (KCCA) Executive Director Jennifer Musisi made the announcement on Wednesday while addressing reporters in Kampala.

The authority will focus all its sponsorship contributions to the CSR causes, including improving KCCA health centers and removing asbestos from KCCA city schools.

The removal of the remaining Asbestos roofs and replacement with iron sheets requires approximately UGX1.9bn

The festival on average hosts thousands of people from within and outside the region.

"We shall start with re-roofing Nakibubo blue and Nakivubo settlement primary schools and also build a maternity ward at Kiswa health center," Musisi said.

KCCA will refund money to people who had already paid for the Kampala City festival stalls and vendors.

Proceeds from the Kampala City festival, for the last seven years, have been going towards rehabilitation of KCCA city schools.