HAM vs DTB: Does a foreign lender to a Ugandan business require a licence? Expert lawyers point out the four errors made by court ENSAfrica’s Phillip Karugaba and Rachel Musoke are both highly rated lawyers by the IFLR1000 and the Chambers & Partners in all matters banking and by extension financial services. In this article co-authored with colleagues, Rehema Nakirya Ssemyalo and Anita Kenyangi, the ENSAfrica lawyers, point out the four errors made by court in the Hamis Kiggundu vs DTB Uganda and DTB Kenya ruling, saying this the ruling sets a dangerous precedent that may spark false hopes for defaulting borrowers, spawning off copycat litigation. They conclude by urging for an expediting appeal against the decision.

Muhereza KyamuteteraOctober 14, 2020October 14, 2020

LEFT-RIGHT: ENSAfrica Uganda's lawyers, Phillip Karugaba , Rachel Musoke , Rehema Nakirya Ssemyalo have said that court erred in law in the controversial Hamis vs DTB ruling

By Phillip Karugaba , Rachel Musoke , Rehema Nakirya Ssemyalo and Anita Kenyangi The recent controversial decision in Ham Enterprises v Diamond Trust Bank (U) and Diamond Trust Bank (K) Ltd has shaken up Uganda’s banking and finance sector, with many foreign lenders demanding clarity on the matter. Background This is a classic case of borrowing in sunny times, then defaulting and a bitter court battle ensuing when the lender tries to take back its proverbial umbrella during the storm. The plot thickens here. Diamond Trust Bank (K) Ltd, (“DTBK”) is a Kenyan financial institution and parent company to its co-lender, Diamond Trust Bank (U) Ltd. (“DTBU”). Ham Enterprises…

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