Court to attach Muslim property over Shs19b debt

Police at the headquarters of Uganda Muslim Supreme Council (UMSC) in Old Kampala on January 12 following the arrival of court bailiffs. PHOTO | ABUBAKER LUBOWA

What you need to know:

  • According to the court attachment order, the properties to be attached are land comprised in leasehold register Volume KKCA 149 Folio 16 land at Kampala City William Street 30, land comprised in leasehold register volume 2771 Folio 2, Old Kampala Plot 23-25, Kyadondo Block 195 Plot 5463, land at Kyanja, and one Square Mile of land at Bukwe, Hoima.

The Uganda Muslim Supreme Council (UMSC) is on the verge of losing its prime property over an outstanding debt of more than Shs19b.

This follows a warrant of attachment and sale of immovable property order by the Commercial Division of the High Court on November 16.

The order directed the bailiffs of Louiza Auctioneers to attach eight prime properties including a Plot on William Street in the middle of Kampala city, should the UMSC fail to settle the debt by December 21.

“Whereas the judgment debtor has not paid the total sum of Shs19.2b in satisfaction of the said decree, these are to command you to attach the immovable property of the said judgment debtor as set forth…” reads in part the court order issued out by the registrar, Ms Catherine Agwero.

Adding: “You are further commanded to return this warrant on or before the 21st day of December, with an endorsement certifying the manner in which it has been or the reason why it was not executed.”

According to the court attachment order, the properties to be attached are land comprised in leasehold register Volume KKCA 149 Folio 16 land at Kampala City William Street 30, land comprised in leasehold register volume 2771 Folio 2, Old Kampala Plot 23-25, Kyadondo Block 195 Plot 5463, land at Kyanja, and one Square Mile of land at Bukwe, Hoima.

Others are one acre piece of land located at Lumbas, Jinja; Plot of land at Mbale; Shares in Uganda Ranchers Ltd and Commercial Holdings Ltd (subsidiaries to Uganda Moslem Supreme Council that owns two square miles of land at Migyera-Buluri), and plot in Entebbe opposite Victoria Mall.

The court has also directed the responsible police officers to ensure that the execution of the order is done in a proper manner.

The application for the execution order was filed by Mr Justus Kyabahwa, a debtor.  The court order arose out of a protracted sale of land in which the UMSC sold land located in Ssembabule to Mr Kyabahwa at Shs3.5b in 2020. 

However, Mr Kyabahwa could not take possession of the said land since it was already leased out to Enterprise Handling Services Limited (ENHAS) for 15 years from 2013 to 2028.

So the UMSC was supposed to refund him his money immediately, but it did not and had not paid him for the past 15 months. 

This saw interest charged at 12 percent per month, catapulting the money that the UMSC is supposed to pay him to over Shs19b.