KAMPALA, November 9, 2026 – The High Court in Kampala has ordered Absa Bank Uganda Limited, formerly Barclays Bank of Uganda Limited, to return two properties belonging to a Kampala couple and pay Shs 80 million in general damages over a dispute arising from a US$ 300,000 loan advanced to a company.
The court also awarded the couple Shs 120mln in damages against Begumisa Enterprises Limited, the company that borrowed the money, bringing the total damages to Shs 200mln.
In a ruling delivered on November 6, 2026, Justice Stephen Mubiru , directed the bank to release the land titles belonging to Henry Senoga and his wife, Immaculate Senoga, free from all encumbrances.
The dispute arose after the couple offered their properties in Namasuba and Bugolobi as security for a loan obtained by Begumisa Enterprises in December 2005. The bank subsequently retained the titles following the company’s alleged failure to repay the loan.
Court documents show that on November 14, 2005, Henry and Immaculate executed separate powers of attorney authorising Begumisa Enterprises to use their respective land titles as security to obtain financing.
Henry offered his property, registered as Kyaddondo Block 273 Plot 3165 in Namasuba, while his wife pledged property registered as LRV 3150 Folio 25 Plot 99 on Luthuli Avenue, Bugolobi.
The couple subsequently executed a third-party mortgage with Barclays Bank on December 16, 2005, paving the way for the lender to advance a total of US$ 300,000 to Begumisa Enterprises.
However, the arrangement later became contentious when the couple challenged the bank’s continued retention of their land titles, arguing that the loan had been fully repaid and that the lender had no legal basis for holding the documents.
In the case heard on July 3, 2023, the couple also questioned why the bank advanced the money to Begumisa Enterprises instead of lending it directly to them, arguing that this was contrary to the purpose for which they had granted the powers of attorney.
In their suit, the couple maintained that their properties had only been offered as security for the US$ 300,000 loan, which they said Begumisa had repaid in full.
They further argued that the mortgage had not been perfected and was therefore null and void.
The bank, however, disputed the claims, arguing that the couple had voluntarily agreed to act as third-party mortgagors and sureties for Begumisa Enterprises.
It maintained that they had undertaken to meet any outstanding obligations arising from the company’s borrowing, including interest.
Barclays told court that Begumisa had defaulted on the loan, with the outstanding debt rising to US$ 727,200 by July 17, 2008.
The bank subsequently filed a counterclaim seeking recovery of the outstanding amount and authority to realise the mortgaged properties to settle the debt.
Begumisa Enterprises denied the allegations and claims against it, asking the court to dismiss the couple’s suit.
In his ruling, however, Justice Mubiru ordered the bank to immediately release the title for the Namasuba property registered in Henry Senoga’s name and the Bugolobi property registered in Immaculate Senoga’s name, both free from any encumbrances.
The judge also awarded the couple Shs 80mln in general damages against the bank and Shs 120mln against Begumisa Enterprises.
The court further ordered the defendants to pay the costs of the suit and the counterclaim.
https://thecooperator.news/absa-index-to-assess-a-decade-of-africas-financial-market-development/
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