Bugwere school ordered to pay over sh100m to supplier over breach of contract

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The High Court sitting in Mbale city has ordered Bugwere High School to pay over shillings 100 million to a food supplier after finding that the institution breached a contract for the supply of posho.

In a judgment delivered by Justice Dr Farouq Lubega on December 9, 2025, the court directed the school to immediately settle the outstanding balance of shillings 105 million owed to Godrich Grain Millers Ltd.

The supplier was also awarded shillings 15 million in general damages and five million for the inconvenience and financial loss suffered as a result of the school’s failure to honour the contract.

The Judgment stems from a 2023 agreement in which the school contracted Gorich Grain Millers Ltd to supply 36,000 kilogrammes of posho at a total cost of shillings 135 million. Records presented before the court showed that the plaintiff (Godrich Grain Millers Ltd) made all deliveries between June and October 2023, but the school only paid 30 million, leaving a substantial balance unpaid. 

According to lawyer Eddie Nagulu, who represented Godrich Grain Millers Ltd, stated in court that despite several reminders, the school failed to clear the debt, prompting the supplier to seek legal redress. In its defence, the school denied liability, but the court found no justification for withholding payment.

The court also awarded interest and costs of the suit, bringing further financial implications for the institution.

According to court documents, Godrich states that the school’s contract committee, through minute number BHSN/04/003/2023, nominated the company as the official supplier of dry food items. Following the award, the school issued a Local Purchase Order requiring the company to supply 36,000 kilogrammes of posho between June and October 2023, at a total cost of shillings 135 million.

Godrich Grains Millers Ltd noted that although the company delivered all the goods as agreed, the school only paid 30 million, leaving an outstanding balance of 105 million. The management further contends that despite several reminders, the school has declined to settle the debt, prompting him to seek legal redress.

In the suit, Godrich Grain Millaers Ltd also sought the court to award general damages for breach of contract, punitive and exemplary damages, interest on the outstanding amount, and costs of the suit.

“In this case, the defendant freely entered into a contract with the plaintiff to supply dry food. The said food was supplied, but the defendant failed to pay for all the food supplied. The defendant did not deny the outstanding balance of sh105m. Therefore, the defendant, having been aware of the debt and still adamantly failing to pay or to honour the contract since October 2023 to date, the plaintiff is awarded sh15m in general damage and sh5million in punitive damage,” Justice Lubega said.