Court orders construction firm to pay Stanbic Bank over Sh162m over loan default
Justice Dr Melody Ginamia Ngwatu, on May 25, 2026, directed CRT Group Limited to make the payment after it was found to have defaulted on a loan facility.
CRT Group Limited, in response to the suit, denied any admissions and maintained that it did not breach the contract. (File photo)
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The Commercial Division of the High Court has ordered a construction company to pay Stanbic Bank Limited over Sh162m for breach of contract.
Justice Dr Melody Ginamia Ngwatu, on May 25, 2026, directed CRT Group Limited to make the payment after it was found to have defaulted on a loan facility. The court further awarded general damages, interest and costs.
According to online information, CRT Group Limited (Uganda) is a registered private commercial enterprise engaged primarily in construction, contracting, and general supplies. Its business operations largely focus on civil works and commercial contracting services.
According to an affidavit sworn by Dennis, a team leader in enterprise banking at Stanbic Bank Limited, CRT Group Limited entered into a loan facility agreement worth sh150 million on July 5, 2023, for a term of three months.
The facility was intended to support an invoice discounting arrangement governed by the bank’s general terms and conditions.
Court documents indicate that the company allegedly breached the terms of the agreement, prompting the bank to file a suit seeking recovery of sh172,393,824 for breach of contract and outstanding obligations.
“The first respondent shall pay to the applicant the sum of sh162, 393,824 as the outstanding amount on the discount invoicing facility loan, general damages of sh40m and interest on the amount and coasts of the application and the suit are awarded to the applicant,” Ngwatu said.
CRT Group Limited, in response to the suit, denied any admissions and maintained that it did not breach the contract. Instead, it argued that the contract was frustrated due to supervening circumstances, namely, the sharp price.
Further, CRT Group Limited argued that, due to frustration in its business operations, it was not in a position to discharge its obligation to repay the loan. The company maintained that the unforeseen challenges significantly disrupted its commercial activities, making performance of the repayment terms impracticable and financially unsustainable.
“Considering all the facts of this case, I find that an award of interest at six per cent per annum is sufficient to recompense on the sums claimed,” Justic Ngwatu said.