Couple awarded sh200m in damages over land dispute

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A couple have been awarded sh200 million in general damages in a land dispute with Barclays Bank, now ABSA, after the court ordered the bank to return two land titles registered in their names.

The Commercial Court on November 6, 2026, awarded the first plaintiff, Henry Senoga, sh80 million and the second plaintiff, Immaculate Senoga, sh120 million in general damages against ABSA Bank.

According to the judgment delivered by Justice Stephen Mubiru, the awards will attract annual interest of 15% from November 6, 2026, until payment in full.

Justice Mubiru also ordered the bank to return the title deeds for two properties, free from all encumbrances. The properties are land comprised in Kyadondo Block 273 Plot 3165 at Namasuba, registered in the first plaintiff's name, and land comprised in LRV 3150 Folio 25 Plot 99 along Luthuli Avenue, Bugolobi, registered in the second plaintiff's name.

“The counterclaim is dismissed with costs to the plaintiffs. Judgment is entered in favour of the plaintiffs jointly and severally against the defendants severally.

The first defendant is ordered to forthwith return to the plaintiffs, free from all encumbrances, the title deed for land comprised in Kyaddondo Block 273 Plot 3165 at Namasuba, registered in the name of the first plaintiff, and the title deed for land comprised in LRV 3150 Folio 25 Plot 99 at Luthuli Avenue, Bugolobi, registered in the name of the second plaintiff.

The first defendant shall pay Sh80 million in general damages, while the second defendant shall pay Sh120 million in general damages. The awards shall attract interest at 15% per annum from November 6, 2026,” Justice Mubiru said.

Genesis of dispute

The dispute arose from a US$300,000 loan, equivalent to about sh1.2b, advanced by the bank to the second defendant, Bemugisa Enterprises Limited, using two properties belonging to the couple as security.

The plaintiffs are the registered proprietors of the two properties: land comprised in Kyadondo Block 273 Plot 3165 at Namasuba, registered in the first plaintiff's name, and land comprised in LRV 3150 Folio 25 Plot 99 along Luthuli Avenue, Bugolobi, registered in the second plaintiff's name.

On November 14, 2005, the couple executed separate powers of attorney authorising the second defendant, Bemugisa Enterprises Limited, to use their respective land titles as security for a loan. They later, on December 16, 2005, executed a third-party mortgage with the first defendant, ABSA Bank, over the two properties.

However, the couple argued that the lender had acted wrongly by advancing the money to the second defendant instead of to them, contrary to the purpose for which they had granted the powers of attorney.

Alternatively, they argued that the second defendant had fully repaid the loan, leaving the first defendant with no legal basis to retain their title deeds.

The couple consequently asked the court to restrain the first defendant from dealing with their properties, order the return of the two title deeds, and award them general damages, interest and costs.