UGANDA, Kampala | Real Muloodi News | DFCU Bank plans to auction Owino Market land, also known as St Balikuddembe Market, if traders fail to pay money on their mortgage within three weeks.
The auctioned 1.5-acre land is in Kisenyi, Central Division, Kampala City, and is owned by Stalls and Lockup Shops Owners Association Limited (SSLOA).
In a statement, KTA Advocates, who is DFCU Bank’s legal representative, said that Owino Market land will be sold following the 30-day expiration date notice.
A lawyer with KTA Advocates, Mr Edwin Tabaro, said SSLOA borrowed money from the bank but failed to repay it.
“SSLOA hasn’t made any payments in the last eight years,” Mr Tabaro said.
To pay the premium and ground rent to the true land owner Kampala Capital City Authority (KCCA) for the subleased property on which the market is located, SSLOA acquired USh4 billion from DFCU Bank in 2010.
As security for the loan, SSLOA mortgaged Mengo-Kisenyi land titles.
The land was meant to resettle traders as the main market was redeveloped.
The main market’s land is owned by Kampala Capital City Authority (KCCA), which also received the USh4 billion premium from SSLOA.
Brief History
The leader of SSLOA, Mr Godfrey Kayongo, said that despite payment, the city authorities withheld the leases for the market property.
“The interest on the loan in the bank continued to around Shs9b. We told KCCA to refund the money so that we could repay the loan, but they took their time. We sued KCCA and got a consent judgement for them to pay,” Mr Kayongo said. KCCA didn’t pay.
SSLOA sued KCCA once more in 2018 for failing to carry out the consent judgement.
In his ruling, Justice Musa Ssekaana gave SSLOA exceptional damages, which included: “USh4.8 billion as the total loan advanced, interest on the loan amount based on the prevailing bank interest rate on the total loan from 4-3-2011 until date of judgement.”
Justice Ssekaana ruled that the sale of Kibuga Block 12, Plot 388 Mengo Kisenyi resulted in a loss to the KCCA of USh1.15 billion and legal costs of USh500 million.
Later, KCCA reimbursed a portion of the cost.
Mr Kayongo said that even though we paid the bank, they still owe the bank USh2 billion.
“KCCA passed the budget to pay us the balance of USh7 billion. However, some authorities in KCCA have refused to pay us. Their intention is to fail us so that the land is taken by the bank and they buy it cheaply,” he said.
He said that to get KCCA to pay the remaining amount so they could repay the bank, they would have to return to court.
Mr Kayongo added that the KCCA spokesperson, Mr Simon Kasyate, did not return their calls, thus all attempts to gain a reply from him proved fruitless.
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