Court orders two Congolese nationals to settle sh56m vehicle debt

__________________

The Commercial Division of the High Court has ordered two Congolese nationals to pay an outstanding balance $16,223 (about shillings 56.7 million) arising from a vehicle transaction.

On September 24, 2025, Justice Susan Odongo ordered Michael Kakule and Mois Kambale Mulihwa to pay the outstanding amount from a $35,000 (about 122 million) vehicle transaction.

“Judgment is entered for the plaintiff against the defendants in the following terms: The defendants shall jointly pay the plaintiff the sum of $ 16, 223 being special damages. The defendants shall pay interest at the rate of eight per cent per annum from the date of filing this suit until full payment. The plaintiff is awarded costs,” Justice Odongo said.

According to court documents, the dispute stems from a September 15, 2022, agreement in which the company contracted with the defendants for the purchase and delivery of a 2022 Toyota Hilux from Japan at $35,000(about shillings 122million). The defendants were expected to clear the amount in instalments within 15 days of the initial payment.

Court records show that the defendants made three instalments $16,245( 56.8 million) on July 17, 2023; $ 9,750 (about 34 million) on August 14, 2023 and $2,880 (about 10 million) on September 3, 2023, leaving an outstanding balance of $ 623 (about 2.1 million). However, the plaintiff argues that the second and third payments were made outside the agreed contractual period, causing the initial order with BE FORWARD Company Ltd Japan, to be cancelled.

Mumejolog Services Ltd argued it was forced to enter a supplementary agreement and place a fresh order with BE FORWARD on September 8, 2023, despite the outstanding balance. The Toyota Hilux, a 2022 white model with chassis number GUN1253928698, was shipped to the port of Dar es Salaam.

On arrival, Mumejolog Services Ltd demanded payment of the remaining balance before releasing the vehicle. Instead, the defendants allegedly defaulted, denied delivery of the vehicle, and even lodged criminal allegations of false pretence against the company, which led to its director’s detention at Central Police Station in Kampala.

Mumejolog Services Ltd claims it was compelled to pay all applicable taxes and transport the vehicle from Dar es Salaam to Kampala, before forwarding it to DR Congo. However, once in DRC, the second defendant (Mulihwa) allegedly seized the Hilux with the help of men in uniform and continues to unlawfully retain it without settling the balance or reimbursing transportation costs, causing inconvenience to the plaintiff.

When the matter came up for hearing, the court proceeded ex parte (hearing is made with only one party present) after confirming that, despite filing a defence, the defendants failed to appear even when hearing notices had been duly served.