Court to rule on row over late Cedric Babu’s property

KAMPALA - The Commercial Division of the High Court in Kampala is today (February 23, 2026) expected to rule on the property case concerning KCB Uganda Ltd and the late former tennis star, Cedric Babu’s family.

KCB recently threatened to sell the late Cedric’s prime property in Kampala unless $182,709 (about shillings 648.9 million) is cleared within 21 days.

This is according to a notice of sale of the mortgaged property comprised in LRV KCCA 119/19 Unit No.2, Condominium Plan No. 00193 at Plot 1, Fumu Lane, Kololo in Kampala city.

The notice, which is dated February 6, 2026, was signed by Brian Kalule, a partner at AF Mpanga Advocates in Uganda, a law firm representing the bank.

It was received by the administrators of Cedric’s estate in protest on February 9 through their lawyer, Justinian Kateera.

“Received in protest; sale intended to defeat late Cedric’s rights as pending suit disputes basis of debt,” Kateera wrote back while acknowledging receipt of the notice on February 9.  The notice also said the above-mentioned sum continues to accrue interest at the contractual rate.

The pending suit was brought by Cedric’s family against the bank seeking to restrain it from selling the property.

The case now awaits an injunction hearing whose ruling is set to be delivered today at 10:00am.

Cedric, who was the son of former minister and pilot, Francis Babu, and the President of the Uganda Chamber of Commerce and Industry, Olive Kigongo, died on May 31, 2025, after a heart complication.

In August, 2025, KCB contacted the deceased’s representatives. Cedric’s mother and wife, Olive and Alison Gallagher, were granted Letters of Administration by court in October last year.

Genesis of problem

According to the KCB’s submissions in court in reply to the suit, on July 14, 2023, the deceased obtained a mortgage facility of $200,000 (about sh710.3m) from it. Under clause 7.17 of the facility letter, it was a condition precedent that the late Cedric maintain a group mortgage protection policy at his own cost.

“The deceased failed to fund the insurance renewal premiums, causing the policy to lapse on August 16, 2024. Subsequently, the deceased passed away in May 2025.  Because the policy had lapsed due to the deceased’s own default, the insurer rejected the claim,” the bank wrote.

It stated that the loan is currently in default with an outstanding balance of $182.710. 

“The respondent (KCB Uganda) initiated the foreclosure process by issuing the 1st demand notice on October 22, 2025, and a formal notice of default on October 30, 2025. The applicants (Olive and Alison) then filed the High Court Civil Suit No. 1470 of 2025 alleging negligence on the part of the Bank for the lapse of the insurance policy, followed by this application,” KCB Bank Uganda Limited said.

“The respondent opposes this application on the grounds that it is legally untenable, fails to satisfy the mandatory requirements for the grant of a temporary injunction, and is a blatant attempt by the applicants to benefit from their and the deceased’s own breach of contract,” it added.  

What family says

In their plaint, Olive and Alison say by agreement contained in facility letter dated June 26, 2023, and duly accepted by signature of the late Cedric and the defendant bank on July 14, 2023, the defendant (bank) agreed to offer a mortgage loan of $200,000 to facilitate the purchase of his above-mentioned home property and that the deceased made a contribution of $125,000 towards the full purchase price.

The duo argue that the deceased made all his monthly payments until May 2025 when he passed on.

In October last year, KCB issued a default notice to the administrators within a week of obtaining letters with the threat of foreclosing.

Upon further consideration of all papers, the family lawyer, Kateera, inquired from KCB about the life insurance policy, which should have extinguished the loan and provided other benefits upon death.

It is reported, in response, that KCB sought an ex-gratia payment under the policy from the insurance company (Jubilee Insurance Company) to reduce or clear the outstanding loan in consideration of the lack of a renewed mortgage protection policy due to a misunderstanding over renewal.

It also said that when the insurance company rejected the claim, KCB issued another default notice seeking repayment of the mortgage loan. The administrators, through their lawyer sued KCB for breach of contract and negligence in not renewing the insurance policy as required under the bank facility letter dated June 26, 2023, and bancassurance mandate.

Bancassurance refers to the practice of banks acting as commission agents and brokers for insurance companies in bundling loans and life insurance policies.

According to the family, the bank in their capacity as a bancassurance agent, acted as intermediary with Jubilee Insurance Company Limited, collected and remitted premiums, received and controlled the policy documents as first payee, and retained custody of the mortgage protection insurance schedule as per decision to renew every August of the year.

The family contends that the life insurance policy had been allowed to lapse by the bank and that, on realising this, the bank informed them that they would seek an ex gratia payment from Jubilee Insurance Company.

Court documents show that the estate of Cedric argues that his account should have been debited because the agreement with the bank provides that “in the event of failure by the borrower to renew its insurance policies within seven days prior to expiry of the said policies, the bank shall automatically renew the insurance policies at the borrower’s cost”.

After the claim and defence were filed, KCB responded by issuing a notice to sell the property within 21 days, whilst the injunction was being heard.