Pioneer sued over Mukono land

By Charles Jjuuko

KASENGE Dairy Farm, a Mukono-based firm, has dragged Pioneer Easy Bus to the Commercial Court over breach of contract in a land deal.

The city commuter bus company was sued in the land division of the court through Katongole, Iga & Masane Advocates. 

According to the suit, Pioneer signed a 49-year land lease in 2005 with Kasenge Dairy Farm for Plot 76, Block 186 at Mbalala on the Jinja-Kampala road to build a bus terminal, but later reneged on the contract.

Timothy Njakaasi, one of the directors of Kasenge Dairy Farm, alleges that Pioneer was supposed to pay sh36m ground rent per annum, but only paid an initial deposit of sh15m. 

“When they were reminded to pay the arrears in 2009, they issued us two cheques; one for sh20m and another of sh16m, which were dishonoured,” Njakaasi noted.

Kasenge also alleged that Pioneer sold the land to another firm, Tredinnik, without their consent, which was contrary to the land lease agreement. 

“Owing to grounds of breach of contract, Kasenge Dairy Farm seeks a court order to compel the registrar of titles to cancel the leasehold for the land obtained by Pioneer and later transferred to Trediinnik,” read the complaint, which also asked court to declare Pioneer and Trediinnik trespassers.

Kasenge is also seeking an order to evict the occupants and payment of the outstanding ground rent and general damages arising from denial of use of the land.

Herbert Odanki, the Pioneer Easy Bus head of marketing, said they are aware of the case. 

He, however, explained that in 2007 they signed an agreement with Tredinnik, whereby Pioneer was to bring buses, while Tredinnik would buy land for a bus terminal. 

“Because there were delays in procuring the buses, Pioneer lost interest in the land since the timeframe, in which we wanted to use land, expired before the buses were imported into the country,” Odanki said on phone.

“We shall defend ourselves in court.”

He, however, refused to explain why they sold the land to Tredinnik without the consent of Kasenge Dairy Farm as stipulated in the contract.