UGANDA, Kampala | Real Muloodi News | Akright Projects Limited, owned by Anatoli Kamugisha, has officially filed for bankruptcy.
A public notice published in Uganda’s newspapers announced that a bankruptcy petition was lodged in the High Court of Uganda (Civil Division) in Kampala on March 16, 2023.
Kamugisha has been grappling with debt and ongoing land disputes in various court cases. Filing for bankruptcy indicates that Akright Projects Ltd. is unable to meet its financial obligations or make payments to its creditors.
Consequently, all outstanding debts of the company will be assessed and settled, either in full or partially, using the company’s assets. This development could mark the end of Kamugisha’s ambitious vision to create private cities in Uganda, addressing the inadequacy of urban infrastructure designed for the colonial elite instead of the current millions seeking economic opportunities.
Bankruptcy offers Kamugisha the opportunity for a fresh start by alleviating the burden of debts that he cannot repay.
Simultaneously, creditors have a chance to recover some repayment based on the available assets for liquidation.
In a previous interview with Bloomberg, Kamugisha had envisioned grafting entirely new cities onto the outskirts of the Kampala Metropolitan area, overcoming Uganda’s development challenges and establishing a haven of first-world luxury in the country.
In 2001, he purchased a 1,200-acre plot of land, situated halfway between Kampala and Entebbe, to transform it into a city following the “Singaporean model” characterised by orderliness, green spaces, and efficiency.
Kamugisha envisioned residents living and working in the city, with office parks, shopping malls, and factories, leaving behind the chaos and congestion of Kampala.
However, the project encountered financial difficulties, leading to the abandonment of several grandiose components.
Last year, the Kampala High Court Land Division ordered the cancellation of 20.5 acres of land fraudulently acquired by Akright Projects Limited, a renowned property dealer.
In a judgment delivered on September 23, Justice John Eudes Keitirima ruled that Akright and Amans Mutebi had initially purchased land in acres but later discovered that the actual measurement was in hectares.
They failed to take the necessary legal steps to lawfully acquire the excess land. The ruling stated that they conducted transactions based on acres but later found that the land was measured in hectares.
The outcome of the bankruptcy proceedings will determine the future of the company and its ability to settle outstanding debts.
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