BMK House, a prominent building in Kampala, is part of the BMK Group’s portfolio of properties in the city
Justice Thomas Ocaya of the High Court’s Commercial Division has ordered Haruna Kalule Muwanga, son of the late city tycoon Ibrahim Muwanga Kibirige (BMK), to pay Dr. Balaam Barugahara Ateenyi, Minister of State for Youth and Children Affairs, Shs1.4 billion.
According to court documents, in July 2021, Muwanga approached Balaam for financial support of Shs1.4 billion, which Balaam accepted. The payment was made in two installments: Shs1 billion on July 29, 2021, to Muwanga’s DFCU bank account, and Shs400 million in cash the following day. The agreement stipulated that the loan be repaid within six months, but Muwanga failed to do so, prompting the lawsuit.
Justice Ocaya ruled in favor of Balaam, stating that Muwanga’s failure to repay the loan had deprived Balaam of using his money to invest in his businesses. The judge awarded Balaam interest at a rate of 6% per annum on the outstanding amount from the date of default until the date of filing the suit. Additionally, the judge ordered Muwanga to pay general damages of Shs140 million and interest at a rate of 6% per annum.
This judgment comes as banks and financial institutions threaten to attach BMK properties, including his multibillion matrimonial home in Naguru, a Kampala suburb.
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