Court orders Mbale based distributor to pay Coca-Cola over sh373m

KAMPALA - The Commercial Court Division of the High Court has ordered Bukusu Constructors Limited to pay Sh373 million to Coca-Cola Beverages Uganda Limited for breach of contract.

In a ruling delivered on March 31, 2026, Justice Patience Rubagumya found that the company based in Mbale district had failed to fulfil its contractual obligations.

Coca-Cola Beverages Uganda Limited had instituted the suit, seeking court orders after alleging that Bukusu Constructors Limited breached the contract.

According to the court documents, Coca-Cola and Bukusu Constructors Limited had a credit arrangement under which Bukusu would receive products on credit, sell them, and remit proceeds through regular cash deposits into Coca-Cola bank accounts held in Stanbic Bank or Equity Bank.

The agreement further provided for regular reconciliation of the accounts. However, as of October 4, 2025, the company had accumulated a debit balance of sh372.4 million.

Justice Rubagumya said Coca-Cola proved that Bukusu Constructors Limited indeed breached the contract and failed to fulfil its obligation and is entitled to damages. 

“The plaintiff, being a successful party in this matter, is therefore entitled to the costs of the suit. In the final result, judgment is entered for the plaintiff (Coca-Cola) against the defendant (Bukusu Constructors Limited) in the following terms. It is hereby declared that the defendant breached the contract between the parties, and the plaintiff is hereby awarded special damages of sh372million. The defendant shall pay the plaintiff general damages amounting to sh40million, Interest at a rate of 18 percent per annum is awarded on the sum,” Rubagumya said.

Justice Rubagumya noted court issued summons for the defendant to file a defence on November 11, 2025, which were duly served on November 13, 2025, as evidenced by an affidavit of service dated December 8, 2025, sworn by Ernest Kalibbala, an advocate with M/s AF Mpanga Advocates, representing the plaintiff.

However, by December 18, 2025, the defendant had not filed a defence as required by law.

Upon the plaintiff’s application, the court entered an interlocutory judgment against the defendant on the same day, pursuant to Order 9 Rule 8 of the Civil Procedure Rules, and the matter was subsequently fixed for formal proof.