Uganda Development Bank (UDB) and Ministry of Finance will this week hold a meeting aimed at structuring a plan for the repayment of a UGX 10.5 billion loan due to Ndere Cultural Centre.
The meeting follows attempts by UDB to resume recovery proceedings against Ndere Cultural Centre, six months after the Ministry of Finance, in September last year, committed to clear outstanding loan balances by December 2024.
The loan, initially contracted directly between Ndere Cultural Centre and UDB, has become a subject of inter-ministerial debate following a presidential directive and a subsequent letter of comfort issued by Finance Minister Matia Kasaija earlier this year.
However, on June 30, UDB wrote to Ndere Cultural Centre, demanding clarity on repayment, which triggered fresh concerns about the looming threat of auctioning the Centre’s property.
Sources familiar with the matter indicate that the letter was prompted by UDB’s frustration over the absence of a formal repayment schedule from the Ministry of Finance, despite months of engagement.
Dr Stephen Rwangyezi, the proprietor of Ndere Cultural Centre, confirmed a meeting is ‘expected soon’ between the two government entities.
“We have had several meetings with the Ministry of Finance, including one today. A follow-up meeting is expected before the end of the week to try and finalise a payment schedule.”
Despite the ongoing discussions, UDB insists that the loan remains the legal obligation of Ndere Cultural Centre.
UDB indicated in its letter that unless a formal agreement is signed with the Ministry of Finance — including a repayment schedule — Ndere remains the principal debtor.
However, in a July 3 response to UDB, Dr Rwagyezi reiterated that the matter was between the bank and government, citing the involvement of the President and Ministry of Finance.
But UDB, subsequently, in a July 7 letter, reiterated its position that the onus remains on Ndere to ensure the government fulfils its financial commitments.
Finance ministry’s delayed commitment
At the heart of the delay is the Ministry of Finance’s failure to issue a binding payment plan.
Minister Matia Kasaija, in a letter of comfort dated January 10, 2025, acknowledged the government’s intent to assist Ndere Cultural Centre due to its cultural significance.
The letter urged UDB to halt auction proceedings and suspend interest accruals to allow for a government-led resolution process.
How Stanbic Bank CFO Ronald Makata Blends Governance, Technology and Human Leadership to Drive Performance“The government supports the commendable efforts of Ndere Cultural Centre in organizing, preserving, and promoting Uganda’s indigenous culture and heritage,” Minister Kasaija wrote.
“Accordingly, we have initiated discussions with the Cultural Centre to identify the most effective modalities for government intervention to turn around the business.”
However, the Bank’s patience appears to be wearing thin, with the absence of a signed agreement or payment schedule from the Ministry forcing it to issue an ultimatum on resuming recovery proceedings.
President’s intervention
President Museveni had earlier intervened in the matter through a letter dated September 23, 2024, directing the Ministry of Finance to explore a government bailout for Ndere Cultural Centre.
This followed a resolution reached in an inter-ministerial meeting chaired by the Office of the Prime Minister, which included representatives from the Ministries of Finance, Gender, and Tourism, the Attorney General, and Government Chief Whip.
The meeting had set an internal deadline of December 2024 for developing a payment structure.
However, delays in execution and the absence of a formal takeover by the Ministry of Finance have stalled progress.
In a separate interview, Pastor Martin Ssempa, who initiated efforts to save Ndere Cultural Centre last year, revealed that a technical committee within the Ministry of Finance has completed a report detailing a possible path to financial rescue.
However, the report has yet to be officially released.
“We are hopeful,” Pastor Ssempa said. “But there are forces trying to frustrate this effort — people who want to take over the Centre for selfish gain.”
Dr Rwangyezi says he remains optimistic that this week’s meeting could break the deadlock and set the stage for a structured government-led settlement — one that would preserve an institution widely regarded as a national cultural treasure.
