A deepening financial and legal standoff between Prism Construction and government has escalated into a high-stakes crisis, with Equity Bank moving to realise securities, placing key properties linked to the Emin Pasha Hotel at risk and casting uncertainty over a major Radisson-branded tourism project.
In a letter last Thursday (March 26, 2026) to the Attorney General, Prism accuses government of repeatedly failing to act on presidential directives, court orders, and agreed payment obligations, leaving the company exposed to enforcement action by its lender.
A dispute known at the highest levels
The matter was formally escalated during a State House meeting on December 20, 2023, hosted by First Lady Janet Museveni and attended by senior government officials including the Attorney General.
This was followed by a Presidential directive dated May 27, 2024, instructing the Ministry of Finance and Bank of Uganda to ensure that Equity Bank does not sell Prism’s assets pending verification of the company’s claims against government.
Further engagement followed through as highlighted by Attorney General reports dated June 6, and July 5, 2024, confirming the matter had progressed through formal government channels.
Court cattle and conditional relief
With no major conclusions, the dispute, however, intensified in 2025 as Equity Bank moved to enforce its securities over the group’s properties.
The High Court Commercial Division, in a ruling delivered on August 9, 2025, by Justice Patricia Mutesi, granted Emin Pasha Hotel and its affiliates temporary relief by extending an earlier interim injunction that had been issued in July, which halted the sale of the mortgaged properties but only on strict conditions.
Court upheld the principle of “pay now, argue later” in mortgage disputes, requiring the borrowers to deposit 30% of the outstanding loan; approximately $2.73 million (about UGX 9.7 billion), as security, without which, the injunction would automatically lapse.
Justice Mutesi declined to remove this condition but extended the timeline for compliance, citing fresh government assurances regarding arrears owed to Prism Construction.
Court noted correspondence, including a July 23, 2025 letter from the Ministry of Education, reaffirming government’s intention to settle at least UGX 5.83 billion owed to the company.
Despite the reprieve, auction pressure persisted, with court bailiffs Jald re-advertising the mortgaged properties and warning they would proceed with sale by public auction or private treaty on October 11, 2025, unless the borrowers deposited the required 30% by October 10, 2025, or cleared the loan in full.
The properties listed for sale included Emin Pasha Hotel in Nakasero, another Nakasero property on Akii Bua Road, and additional land in Kisugu registered to guarantor Kennedy Erestus Lokule Losuk.
The case, filed by Emin Pasha, Prism Construction and Losuk, challenged Equity Bank and the Attorney General after a foreclosure notice was issued on April 14, 2025.
At the time, the bank cited outstanding amounts of $8.77 million (about UGX 31.2 billion) on a consolidated facility and UGX 3.118 billion on a second facility.
In her ruling, Justice Mutesi rejected arguments for an unconditional injunction, holding that once foreclosure begins, any court order stopping the process must be tied to a 30% deposit.
She also ruled that earlier property valuations could be used to compute the deposit and clarified that courts may rely on the lender’s stated outstanding amounts at the time of filing.
From directives to court orders and continued non-compliance
Even as the court process unfolded, Prism says government commitments to settle its claims remained unfulfilled.
On August 4, 2025, the President issued another directive ordering the Ministry of Finance to settle all verified sums owed to Prism.
When payment was not made, the High Court issued an Order of Mandamus on October 8, 2025, compelling government to pay UGX 5.8 billion plus all verified amounts due.
A Consent Order dated October 10, 2025 between government, Equity Bank, Prism and Emin Pasha Hotel provided a structured payment plan to stop the auction.
Under that arrangement, government paid UGX 5.5 billion on October 15, 2025, while Prism had already contributed $700,000 (about UGX 2.5 billion).
A final instalment of $430,000 (about UGX 1.5 billion) was due by November 24, 2025, but Prism says government failed to honour this obligation.
#CEOOfTheWeek: Mumba Kalifungwa — Unlocking Stanbic’s Lending Power to Drive Uganda’s GrowthDespite a reminder from the Attorney General on November 5, 2025, payment was not made. A revised court order extended the deadline to March 19, 2026, but this too was missed, even after a March 2, 2026, request by the Solicitor General for release of $350,000 (about UGX 1.25 billion).
The claims: Verified and outstanding
At the centre of the dispute are layered financial claims.
Prism states that UGX 26 billion in claims were submitted around May 2023 for arbitration or amicable settlement. A harmonised report was later submitted on May 29, 2024 following joint review.
From this broader process, a specific claim of UGX 2.39 billion was formally submitted to the Attorney General on October 23, 2025.
Out of this amount, UGX 1.28 billion has been verified as due, while UGX 1.11 billion remains pending verification.
Prism maintains that even the verified sum has not been paid, despite presidential directives and court orders requiring settlement.
Equity targets charged properties
With payments still outstanding, Prism says Equity Bank is proceeding to realise its securities, exposing charged properties linked to the group to possible auction.
These include Emin Pasha Hotel and other mortgaged properties tied to the borrower and guarantor, as earlier identified in court proceedings and auction notices.
Radisson project now under threat
While the Radisson Emin Pasha Lakeview Hotel Project is not explicitly listed among the charged securities, Prism, in its March 26, 2026, letter, warns that it is now at serious risk due to financial strain and lender pressure.
Prism says it has already invested about $20 million (about UGX 71 billion) into the project and that earlier presidential intervention sought to prevent withdrawal of financing by Equity Bank before completion.
It argues that continued inaction has now jeopardized the project, undermining its viability.
In his letter, Losuk describes the Radisson development as a major tourism investment linked to a global hospitality brand with a reach of over 300 million customers worldwide.
Thus, he notes, disruption of the project would risk damaging Uganda’s tourism growth and investor confidence, and would also cause financial and reputational harm to Prism and its stakeholders.
Demand for resolution, or legal action
In its March 26, 2026, letter, Prism demands immediate payment of the UGX 1.27 billion verified amount, settlement of the remaining UGX 1.11 billion, and resolution of the broader UGX 26 billion claim.
The company is also seeking a global, amicable settlement, including compensation and acknowledgment of what it describes as administrative injustice linked to the recall of guarantees by the Ministry of Education.
It warns that it will pursue legal remedies, including compensation claims, if the matter is not urgently resolved.
A test of government credibility
The dispute now sits at the intersection of law, finance, and public accountability.
At stake is not only the fate of Emin Pasha’s properties, but also broader questions about government compliance with its own directives, respect for court orders, and protection of private investment.
As enforcement pressure builds and deadlines continue to lapse, the future of both Emin Pasha Hotel and the Radisson project tied to it remains uncertain.
