East Africa is the fastest-growing economic region on the continent. In 2022, Uganda, Kenya and Tanzania attracted over USD13.3 billion worth of foreign direct investment (FDI). This is according to the latest investment report by the business advisory firm Ernst & Young. The report singled out Uganda as having received USD10.2 billion — the highest in East Africa — creating 6,300 jobs. However, a refusal by a Ugandan Commercial Court to respect and enforce a London Court of International Arbitration (LCIA) ruling has turned on the stage lights onto Uganda’s investment climate and may position the country in a bad…
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Hardly 5 years, after being granted a tier-1 commercial banking license, Opportunity Bank is downgrading back to a Tier 2 Microfinance Deposit-taking Institution (MDI), CEO East Africa Magazine can exclusively reveal. This decision has been confirmed to CEO East Africa Magazine, in an email. It follows the Financial Institutions (Revision of Minimum Capital Requirements) Instrument 2022 of November 2022 that requires financial institutions to significantly increase their capital buffers. “Over the last 12 months, Opportunity Bank has comprehensively reviewed its strategic plan, business model, service offerings and target customer market. The outcome of this review shall be a transformed Opportunity…
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Following our publication of Uganda’s leading corporate and commercial law firms, CEO East Africa Magazine has gone further to boil it down to the leading individual lawyers. The CEO East Africa’s 2023 Guide to Uganda’s 75 Highly Regarded Business Lawyers list has been distilled from the 2022 Chambers & Partners ratings for Uganda, as well as the International Financial Law Review (IFLR) 1000 and The Legal 500. CEO East Africa Magazine, also consulted some respected names in the legal services industry, for their own insights on who else they thought was worth adding to the list, based on their knowledge…
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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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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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With only a few hours left to the commencement of a National Environment Management Authority (NEMA) directive to the motoring public to have dustbins installed in their motor vehicles, senior lawyers insist the impugned directive is inconsistent with the constitution and warned the police should not go ahead to implement it. In an interview with CEO East Africa Magazine Phillip Karugaba, one of the leading and most respected lawyers in Kampala and an Executive at the ENS Africa Uganda office said that the said directive is illegal as no one can be convicted for a none existing offence. “The key…
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Uganda has come a long way from Polaroid slides and Kodak prints to having cameras with high-quality video capability as standard ware in mobile phones. Drone photography is yet another dynamic leap forward offering photographers new angles to their trade, especially for tourism use. But is Uganda’s regulatory framework around the use of drones hindering its potential? A remotely piloted aircraft system, or “drone” as it is commonly referred to, can be simply described as a piece of technology flying unmanned. The control is usually by the pilot on the ground while the drone enjoys the skies. Drones have found…
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By Phillip Karugaba, Rachel Musoke and Sheila Pacuto The Ugandan Court of Appeal, (in Diamond Trust Bank (Kenya)/Diamond Trust Bank (Uganda) vs Ham Enterprises Civil Appeal No, 262 of 2020), has set aside a decision that declared loans made by Diamond Trust Bank (Kenya) to a Ugandan business to be illegal on the grounds that the lender required and had not obtained a licence from the Bank of Uganda under the Financial Institutions Act 2004. The Appeal Court set aside the judgment and has sent the matter back to the High Court for retrial before another judge. In its decision,…
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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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By Phillip Karugaba & Rehema Nakirya Ssemyalo Like in many countries, Uganda’s government is the single largest spender of money, and as such, contracting with government or governmental agencies can present great opportunities for businesses. This field is governed by multiple laws and it is important to ensure legal compliance, as these contracts could be queried in court or by the government ombudsman, the auditor general or a parliamentary oversight committee. A lot of time and effort could then be expended trying to retrospectively justify departures from compliance and political pressure may also be brought to bear. The consequences of…
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