The Commercial Division of the High Court of Uganda has dismissed a USD 400,000 shareholder loan recovery suit filed by businessman and lawyer Charles Odere, ruling that the matter must…
When mega-deals happen, the most visible winners are usually the shareholders who are selling. But in transactions of this scale, there is always a second, less visible layer of immediate…
Miriam Ekirapa Musaali, a distinguished corporate lawyer, governance expert, and Director of Legal and Board Affairs at the Capital Markets Authority (CMA) Uganda, has passed on. She has reportedly succumbed…
The past five years have not gone particularly well for Uganda’s billionaire class. Once the undisputed symbols of local enterprise and ambition, several of the country’s most prominent businessmen have…
The Court of Appeal has upheld a High Court decision ordering Imperial Royale Hotel, one of Kampala’s flagship luxury hotels, to refund government $1.46 million (about UGX 5.05 billion) and…
By Phillip Karugaba & Rehema Nakirya Ssemyalo The Supreme Court of Uganda gave its judgment last week in the much-anticipated appeal in Ham Enterprises Ltd, Kiggs International (U) Ltd and Hamis Kiggundu vs. Diamond Trust Bank (U) Ltd and Diamond Trust Bank (K) Ltd (Civil Appeal No. 13 of 2021). The court held that a lending transaction between a foreign bank and a Ugandan borrower does not constitute “transacting financial institutions business” as defined by the Financial Institutions Act 2004 (“FIA”). This finally clarifies that a foreign lender does not require a licence from the Bank of Uganda (“BoU”) under…
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Alliott Global Alliance (‘AGA’) has expanded into Uganda’s law firm market by appointing award-winning law firm, KTA Advocates (KTA) in Kampala, to its membership. Founded in 1979, Alliott Global Alliance is an international alliance of 220 independent law, accounting, and specialist advisory member firms in 95 countries. AGA is also one of the largest professional services alliances in Africa with law and accounting firm coverage in 17 countries⏤ Algeria, Botswana, Cameroon, Egypt, Kenya, Lesotho, Libya, Malawi, Mauritius, Morocco, Nigeria, South Africa, Tanzania, Tunisia, Zambia, Zimbabwe and now, Uganda. KTA Advocates, on the other hand, is one of Kampala’s leading…
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Uganda’s Supreme Court on 13th June 2023 dismissed an application in which businessman Hamis Kiggundu and his companies, Ham Enterprises Ltd and Kiggs International Ltd sought to wiggle out repayments of approximately USD11 million to two banks, claiming the lending was done without license. In the much-anticipated ruling, a Coram of 5 judges⏤Owiny-Dollo CJ; Mwondha JSC; Tuhaise JSC; Chibita JSC; Musota JSC) emphasised that the syndicated lending between Diamond Trust Bank Uganda (DTB-U) and Diamond Trust Bank Kenya (DTB-K)is legitimate and enforceable. It also ruled that foreign lenders who do not mobilise deposits domestically are not bound by the Financial…
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Uganda’s Supreme Court, Uganda’s highest court has dismissed attempts by businessman Hamis Kiggundu to run away from his debt obligations with Diamond Trust Bank Uganda (DTB-U) and Diamond Trust Bank Kenya (DTB-K), using the cover that the syndicated lending to him was done without a license and therefore an illegality and a nullity. Dismissing the application by Hamis Kiggundu and his companies, Ham Enterprises Ltd and Kiggs International Ltd), the Coram of 5 judges⏤Owiny-Dollo CJ; Mwondha JSC; Tuhaise JSC; Chibita JSC; Musota JSC)⏤ in a lead judgment by the Chief Justice, the Hon. Owiny-Dollo further re-emphasised no law forbids the…
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The Tax Appeals Tribunal, sitting in Kampala has set aside a UGX4.6 billion import duty assessment against paint makers, Kansai Plascon Uganda. The company dragged the Uganda Revenue Authority (URA) to the Tribunal, challenging an import duty assessment of UGX4,623,958,639 on raw materials imported between 2017 to 2021 from Egypt, namely long oil alkyd resins, polymers and calcium carbonate. Egypt, just like Uganda, is a member of the Common Market for Eastern and Southern Africa (COMESA); therefore, the said goods were supposed to enjoy preferential tax status. In the tax dispute, URA told the court that during this period, Kansai…
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It has been reported that the Rules of Origin (the “RO”), set forth in Annex 2 of the African Continental Free Trade Area Agreement (the “AfCFTA” and “Treaty,” respectively) and the accompanying Appendix IV constituting the tariff schedule (“Appendix IV”), are close to finalisation, bringing the trade pact’s signatory states a step closer to commercially meaningful trade. The Rules of Origin provide a framework for identifying products or components that are eligible for preferential market access. Under the Treaty, up to 97% of tariff lines are eligible for a gradual phase-out of customs duties. An eligible item that is wholly…
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The Public Procurement And Disposal Of Public Assets Tribunal has cancelled the procurement process by the Uganda National Airlines Company (Uganda Airlines) for the supply of aviation fuel and inflight support over among other reasons, over, what it called the “discriminatory treatment of bidders and unfair favouring of the best-evaluated bidders”. Vivo Energy (U) Limited was the Best Evaluated Bidder in Lot 1 of Procurement Reference Number UNACL/SUPLS/22-23/00020 for the supply of aviation fuel valued at USD12,254,758 and Associated Energy Group, LLC was the Best Evaluated Bidder for Lot 2 (inflight support), at a total contract price of USD17,278, 287….
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Rubis Energy Uganda Limited has won a USD17,296,320.5 tender to supply Heavy Fuel Oil (HFO) for the Namanve Thermal Power Plant. The plant is run by Uganda Electricity Generation Company Limited (UEGCL). This follows The Public Procurement And Disposal Of Public Assets Appeals Tribunal’s dismissal of an appeal by Maxol Uganda Limited, one of the unsuccessful bidders. Maxol had appealed against Rubis Energy being declared the best-evaluated bidder. Maxol’s bid was rejected because its proposed HFO presented a net calorific value of 40,483 KJ/kg and a gross calorific value of 42,103 Kj/kg, yet the bidding document required a net calorific…
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The Tax Appeals Tribunal (TAT) has disallowed a UGX 504,098,312 tax bill by Uganda Revenue Authority (URA) on asset-financing firm Tugende Limited, saying the tax authority wrongly assessed the tax. The 2 against 1 majority ruling follows an application by Tugende Limited arguing that the tax assessment was based on discounts to its customers who repaid their leases early, yet these should be allowable expenses. URA disagreed and issued an additional income tax assessment of UGX504,098,312 which the applicant objected to. Tugende was represented by Oscar Kamusiime and Linda Mugisha from Birungyi, Barata & Associates, while URA was represented by…
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On January 26th 2023 Hon Justice Oscar John Kihika, took an oath as a Justice of the Court of Appeal/Constitutional Court. Mr. Kihika, a distinguished commercial lawyer and certainly one of the finest in the trade, and the co-founding Partner of Byenkya, Kihika & Co Advocates, was in November last year appointed Justice of the Court of Appeal/Constitutional Court by President Yoweri Kaguta Museveni. The Court of Appeal of Uganda is the second-highest judicial organ in Uganda. It derives its powers from Article 134 of the 1995 Constitution. It is an appellate court that hears cases appealed from the High…
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