Court orders ex-Crane captain to pay sh392m in security
In a ruling dated August 4, Assistant Registrar Christa Namutebi ordered Amesco High School Wakiso-SMC Limited (formerly Andy Mwesigwa Comprehensive High School-SMC Limited) to deposit security of 30% of the outstanding liability within 30 days from the date of the ruling. Mwesigwa is the proprietor of the school.
Mwesigwa’s school at Bugwanya, Kakiri in Wakiso district.
KAMPALA - The Commercial Court has ordered former Uganda Cranes captain Andy Mwesigwa to pay sh392m in security before it can proceed to hear his loan case against ABC Capital Bank Limited.
The sh392m represents 30% of the accumulated sh1.3m loan that the bank claims Mwesigwa owes.
In a ruling dated August 4, Assistant Registrar Christa Namutebi ordered Amesco High School Wakiso-SMC Limited (formerly Andy Mwesigwa Comprehensive High School-SMC Limited) to deposit security of 30% of the outstanding liability within 30 days from the date of the ruling. Mwesigwa is the proprietor of the school.
However, the registrar issued an order, restraining the bank and its agents from selling, transferring, disposing of, interfering with, or otherwise dealing with the land comprised in Busiro Block 214 Plot 130, situated at Bugwanya, Kakiri, Wakiso district, on which the school is located, pending the determination of the main suit.
“The balance of convenience favours preserving the mortgaged property and continued operation of the school pending trial,” Namutebi stated.
The court heard that the school’s failure to service the loan prompted the bank to advertise the mortgaged property for sale, and commence steps to evict Mwesigwa.
Mwesigwa swore an affidavit, stating that the school would be inconvenienced if they lost over 350 students, which would dent its reputation.
According to court documents, the bank had issued a notice of sale claiming sh1.3b on March 10, 2026 and advertised the property for sale on May 22, 2026.
Court documents indicate Mwesigwa’s school obtained a loan of sh480m from the bank under a facility letter dated December 30, 2019, and that facility was secured by a legal mortgage over the land.
The loan facility attracted an annual interest rate of 23.5% per annum and was repayable in 16 termly instalments of sh54.67m each, falling due on February 20, June 20 and October 20 of each year.
According to Mwesigwa, the loan was obtained to refinance an existing debt facility with Equity Bank Uganda Limited and to finance the completion of two classroom blocks at his school in Kakiri, Wakiso district.
A New Vision file Photo of Andy Mwesigwa.
The loan statements indicate that the borrower did not consistently make the scheduled instalment payments when they fell due.
Under the terms of the loan agreement, overdue payments attracted penal interest. Payments received were applied in accordance with the agreed repayment terms, including the settlement of applicable penalties and interest before reduction of the principal balance.
As a result, payments made were insufficient to fully regularise the account, and outstanding obligations continued to accumulate. The borrower has sofar paid approximately sh338m.
Write-off
According to Mwesigye, following the onset of the COVID-19 pandemic, he requested an interest waiver from the bank after the outstanding loan balance increased from sh480m to sh761m.
He says the bank subsequently informed him that the interest for 2022 had been revised in accordance with Bank of Uganda directives and invited him to sign the enclosed loan restructuring offer.
However, Mwesigye claims that, despite the restructuring offer, the bank has never provided a clear, complete, accurate and verifiable statement of account showing how the alleged COVID-19 interest reversal was calculated, the period it covered, whether penalties and interest compounding were suspended, whether all ineligible charges were removed, or whether the resulting loan balance is lawful and accurate.
The bank, however, contends that the loan account was written off on June 28, 2024, with the outstanding balance at sh787m.
The bank maintains that the write-off did not amount to a waiver, cancellation, or extinguishment of the borrower’s obligation to repay the loan, as provided under the terms of the offer letter.
Court documents indicate that, as of May 18, 2026, the bank claimed that it was demanding Mwesigwa sh1.3b, representing the outstanding balance on the account, including amounts accrued under the applicable loan terms.
“The loan was not settled because it was written off. The account records show a history of missed or insufficiently serviced instalments, with contractual interest and penalties continuing to apply in accordance with the loan agreement,” the bank contends.
The bank contends that any dispute regarding the calculation, application of interest or penalties, or the enforceability of particular charges should be determined by reference to the underlying agreement, account statements, and applicable law.