• Mon. Oct 2nd, 2023

Landlord Closes Medipal International Hospital in Kololo over UGX1bn Rent Arrears

UGANDA, Kampala | Real Muloodi NewsMedipal International Hospital, a renowned high-end private medical facility in Kololo, Kampala, has been forced to close its doors due to unpaid rent amounting to over USh1 billion.

On the morning of Tuesday, May 30th, Tembo Steels (U) Limited, the proprietor of the building housing Meclipal International Hospital, made a forceful attempt to evict the hospital due to accumulated rent arrears exceeding Shsl billion.

Helga Wesonga, the company’s legal counsel, along with a team of private security personnel, followed the company’s orders and sealed off all access points to the hospital.

“We have deployed security guards as talks go on and if the landlord doesn’t get the rent clue, the guards will go ahead to ensure that Medipal vacates the building peacefully. So, for now we have closed the building, only leaving one entry and exit point,” Mr Wesonga said.

By the end of business hours Tuesday, Securex security personnel had taken over the hospital’s security, maintaining a single access point for public use while the rest remained closed.

The closure came after the landlord, Tembo Steels, served Medipal with a ‘notice to vacate premises’ on Tuesday 23rd May 2023, citing the hospital’s failure to fulfil its financial obligations.

In the notice addressed to Dr Adnan Khan, the proprietor of Medipal International Hospital, Manish Kalia, the General Manager of Tembo Steels, referred to multiple reminders and meetings held with the hospital management regarding the overdue rent amounting to $365,557 (over USh1bn).

“Reference is hereby made to the numerous reminders sent to you and the meetings held with us where you promised to clear your overdue rent obligations totaling $365,557 (over Shs1bn). Management of Tembo Steels Uganda, after careful consideration, has decided that you pay up your outstanding rent of $365,557 by September 30, 2022, and prepare to vacate the building by December 31, 2022,” reads the notice authored by Manish Kalia, General Manager, Tembo Steels, to Medipal proprietor, Dr Adnan Khan.

Despite repeated notices and reminders, Medipal continued to operate from the premises, accumulating further rent arrears.

When approached for comment, Ephraim, a manager at Medipal, acknowledged the ongoing issue but stated that the hospital was still receiving patients. However, as of now, Medipal has not settled its rent arrears.

Medipal gained prominence during the COVID-19 pandemic, attracting high-profile individuals from the government, business community, and military due to its superior medical services.

However, like many businesses in Uganda, private hospitals have faced challenges from economic difficulties.


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