Court grants interim stay in sh38b Simba properties loan dispute

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The Supreme Court has granted an interim order halting the execution of a Court of Appeal decision that struck out Simba Properties Investment Company Limited’s bid to challenge a $10 million (about sh38billion) arbitral award.

In its ruling delivered by Justice Elizabeth Musoke on October 2, 2025, the Court noted that referring the stay application back to the Court of Appeal would amount to unnecessary duplication, since the matter had already been argued before the Supreme Court. The justice, therefore, noted that it was more practical to determine the issue conclusively at that level of the Supreme Court.

As a result, the Court issued an interim stay of execution of Civil Appeal number 305 of 2025, pending the hearing and determination of Simba Properties’ substantive application for stay of execution. The justices further ordered that the costs of the application would abide the outcome of the main application.

“In my opinion, the interest of the judicial economy requires that where an application for stay of execution is filed in this court and is given a hearing date, this court should proceed to determine the application on its merit. After all, this court and the Court of Appeal apply the same principles when determining applications for stay of execution. Furthermore, it will be noted that an intending appellant who has his or her application for stay of execution dismissed by the Court of Appeal has a right, under rule one of the Rules of this court (Supreme Court), to bring a fresh application for stay of execution,” Musoke said.

The Court reasoned that it was justifiable to grant the stay order pending the determination of the substantive case.

“I would allow this application, an interim order staying the execution of the decision in civil appeal number 305 of 2025 pending the hearing and determination of the applicant’s application for substantive stay of execution is granted,” Justice Musoke said.

Background of the application

In December 2014, Simba Properties Investment Company Limited secured a $10 million loan from Vantage Mezzanine Fund II Partnership, backed by guarantees from its affiliates and mortgages on various properties. However, the lenders later accused Simba of defaulting on the loan terms, prompting arbitration proceedings under the London International Chamber of Commerce.

The arbitration concluded with a final award in July 2023, followed by an addendum in August 2023, both in favour of the lenders. Seeking enforcement, the lenders turned to the High Court’s Commercial Division, which also issued interim orders in November 2023 restraining Simba and its guarantors from altering ownership of mortgaged property or shares pending the case’s determination.

Simba and the guarantors attempted to challenge that ruling, filing a notice of appeal and later seeking leave from the Court of Appeal. However, in August 2025, Justices Egonda-Ntende, Eva Luswata, and Esta Nambayo struck out their notice of appeal, holding that no appeal was permitted under the Arbitration and Conciliation Act.

Unrelenting, Simba and its affiliates escalated the matter to the Supreme Court, where they have since lodged applications for leave to appeal and for both substantive and interim stays of execution against the enforcement of the arbitral award.