Kabale businessman's property seized over unpaid loans
Jan 31, 2020
Before the case had matured, he opted for an out of court settlement with the bank in 2014 and a consent judgment was set between the two parties
There was chaos in Kabale Municipality on Thursday as court bailiffs and the Police evicted tenants off a property belonging to prominent businessman and top NRM cadre in Kabale Municipality, Christopher Mulenga, over failure to repay a loan of sh4.1b.
The property in question included a 2-storey building at Plot 7 Nyerere Avenue and Little Ritz Hotel located on Plot 3-5 Rugabaya in Kabale Municipality.
The court order will also see the takeover of a farm that belongs to the businessman at plot 14, 15, 40 and 41 and block 117 Shebeya, Ikumba sub-county in Rubanda district.
Traders remove their merchandise from one of the properties. Photo by Job Namanya
According to Elia Mugaya, an advocate from Armstrong Auctioneers who presided over the eviction, Mulenga took a loan in 2013 from Stanbic Bank and secured it with the property including a hotel, building and some land.
He, however, failed to fulfil the expected terms and conditions. The Bank then served him an intention to claim the secured property but Mulenga rushed to court for recourse.
Before the case had matured, Mulenga opted for an out of court settlement with the bank in 2014 and a consent judgment was set between the two parties. New terms were set but the businessman still failed to meet them.
The bank then returned to court for action and a notice to show cause was served to the businessman but he could not satisfy the bank.
Thursday saw court execute the eviction as more legal procedures await.