Wakilii

United Bank Of Africa Uganda Limited v Namaubi Enterprises Ltd and Others [2026] UGHC 511

High Court · 2026 Judgment for Plaintiff AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for recovery of loan debt and enforcement of personal guarantees
Decision
Judgment entered for the Plaintiff against all Defendants jointly and severally for the outstanding loan balance, general damages, interest and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The High Court held that the 1st Defendant remained indebted to the Plaintiff for UGX 193,019,521 and had breached the loan agreement by failing to repay the facility granted on 7 June 2012. The 2nd, 3rd and 4th Defendants breached their personal guarantees by refusing to discharge the 1st Defendant's debt upon default. The Court awarded the outstanding loan balance, general damages of UGX 30,000,000, interest at 31% per annum on the loan from filing until payment, and 6% per annum on general damages from judgment.

Outcome

Judgment entered for the Plaintiff against all Defendants jointly and severally for the outstanding loan balance, general damages, interest and costs

Facts

On 7 June 2012, the 1st Defendant applied for and was granted a loan facility of UGX 160,000,000 by the Plaintiff bank, secured by a legal mortgage over land in Mukono District and domiciliation of contract proceeds. The 2nd, 3rd and 4th Defendants executed personal guarantees undertaking to indemnify the Plaintiff unconditionally and irrevocably. The loan was for 90 days expiring 5 September 2012 at an interest rate of 2% above the prime lending rate of 29% per annum. The 1st Defendant defaulted on its repayment obligations. Despite demand notices dated 5 October 2012, 21 January 2013 and 10 February 2016, the outstanding balance of UGX 193,019,521 remained unpaid. The Plaintiff called upon the guarantors but they refused or failed to discharge the debt. The 1st, 2nd and 4th Defendants did not appear at trial despite multiple adjournments and the matter proceeded ex parte against them under Order 17 rule 4 of the Civil Procedure Rules. An interlocutory judgment was entered against the 3rd Defendant under Order 9 rule 8.

Issues

  1. Whether the 1st Defendant is still indebted to the Plaintiff?
  2. Whether the 1st Defendant breached the terms of the loan agreement?
  3. Whether the 2nd, 3rd and 4th Defendants are in breach of their personal guarantees to the Plaintiff?
  4. What remedies are available to the parties?

Orders

  • It is hereby declared that the 1st Defendant breached the terms of the loan agreement dated 7th June, 2012.
  • It is hereby declared that the 2nd, 3rd and 4th Defendants are in breach of their personal guarantees to the Plaintiff.
  • The Defendants are hereby ordered to pay the Plaintiff UGX 193,019,521/= being the outstanding loan balance.
  • The Defendants shall pay the Plaintiff general damages of UGX 30,000,000/=.
  • Interest is hereby awarded on the outstanding loan balance at the rate of 31% per annum from the date of filing the suit until payment in full.
  • Interest is hereby awarded on the general damages at the rate of 6% per annum from the date of Judgment until payment in full.
  • Costs of this suit are awarded to the Plaintiff.

Rules and key headnotes

Banking & Finance — Loan Agreements — Proof of Indebtedness — Bank Statements as Prima Facie Evidence
Under Section 2 of the Evidence (Bankers' Books) Act Cap. 9, bank entries are prima facie evidence of the matters, transactions and accounts recorded therein, and unchallenged bank statements constitute sufficient proof of indebtedness.
Contract Law — Breach of Contract — Loan Agreements — Failure to Repay
Failure to repay a loan in accordance with the agreed terms constitutes breach of contract entitling the lender to recover the outstanding sums, and where a party signs a contract containing contractual terms, in the absence of fraud or misrepresentation, that party is bound by its terms.
Contract Law — Guarantees — Liability of Guarantor — Extent and Timing
Under Section 70 of the Contracts Act Cap. 284, the liability of a guarantor is to the extent to which the principal debtor is liable and such liability takes effect upon default by the principal debtor, obliging the guarantor to pay the loan once the principal borrower defaults.
Damages & Quantum — General Damages — Assessment — Financial Institutions
Where a financial institution is deprived of the use of its money due to breach of a loan agreement and guarantee deeds, the institution suffers grave financial loss and inconvenience for which general damages are awarded to compensate for the deprivation of use of money in its operations.
Damages & Quantum — Interest — Contractual Interest Rate — Enforcement
Where parties have agreed on an interest rate in a loan facility agreement, the court will award interest at the contractually agreed rate on the decretal sum from the date of filing the suit until payment in full.
Civil Procedure — Ex Parte Proceedings — Non-Appearance — Order 17 Rule 4
Where a defendant repeatedly fails to appear in court despite multiple adjournments and fails to comply with court directives, the court may order that the matter proceed ex parte against that defendant pursuant to Order 17 rule 4 of the Civil Procedure Rules.
Civil Procedure — Interlocutory Judgment — Failure to File Defence — Order 9 Rule 8
Where a defendant has been duly served but fails to file a written statement of defence as required by law, the court may enter an interlocutory judgment against that defendant under Order 9 rule 8 of the Civil Procedure Rules.

Legislation cited (11)

Cases cited (18)

  • Atanazio Betubia v Centenary Bank and Another (High Court Civil Appeal No. 27 of 2014)
  • John Bwiza v Patrick Yowasi Kadama (Court of Appeal Civil Appeal No. 35 of 2011)
  • Bank of Africa (U) Ltd v Ram Engineering (U) Ltd and Others (Civil Suit No. 470 of 2020)
  • William Kasozi v DFCU Bank Ltd (Civil Suit No. 1326 of 2000)
  • Meridiana Africa Airlines (U) Ltd v Avmax Spares (EA) Ltd (Civil Suit No. 111 of 2017)
  • Omega Bank Plc Vs O.B.C. Limited (2005) 8 NWLR (pt.928)
  • Fina Bank Ltd Vs Spares and Industries Ltd (2000) 1 EA 52
  • Standard Chartered Bank Uganda Ltd v Parambot Distilleries Ltd and Others (Civil Suit No. 924 of 2020)
  • Bank of Uganda v Banco Arabe Espanol (Court of Appeal Civil Appeal No. 23 of 2000)
  • Moshi Vs Rep Air Services Ltd and Another [1972] 2 All E.R 393
  • Bank of Uganda v Banco Arabe Espanol (Supreme Court Civil Appeal No. 1 of 2001)
  • Kabandize John Baptist and 21 Others v Kampala Capital City Authority (Court of Appeal Civil Appeal No. 36 of 2016)
  • Takiya Kashwahiri and Another v Kajungu Denis (Court of Appeal Civil Appeal No. 85 of 2011)
  • Uganda Commercial Bank Vs Deo Kigozi [2002] 1 EA 305
  • Milly Masembe v Sugar Corporation (U) Ltd and Another (Supreme Court Civil Appeal No. 1 of 2000)
  • Wallersteiner Vs Moir [1975] 1 All ER 849
  • Mohanlal Kakubhai Radia v Warid Telecom Uganda Ltd (Civil Suit No. 224 of 2011)
  • Uganda Development Bank Vs Muganga Construction Co. Ltd [1981] H.C.B 35

Full judgment

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United Bank Of Africa Uganda Limited v Namaubi Enterprises Ltd and Others 2026 UGHC 511 (8 April 2026)
Source: this page presents Wakilii’s issue analysis and metadata for a publicly reported Ugandan judgment. Any AI-generated summary is marked as such. Judgment text is sourced from the Uganda Legal Information Institute (ulii.org). Wakilii is not affiliated with ULII.