Court quashes bid to reinstate SACCO leaders amidst claims of fraud and irregular dismissal
The applicants had argued that their removal violated the SACCO’s bylaws and the Constitution, particularly Articles 28, 42, and 44, which guarantee the right to a fair hearing
KAMPALA, September 25, 2025 — The High Court in Kampala has dismissed an application by two ousted leaders of a teachers’ cooperative savings society, who were seeking a temporary injunction to block their removal from office, citing a lack of evidence of irreparable harm and a contested legal status.
The ruling, delivered by Justice Bonny Isaac Teko on July 17, 2025, followed Miscellaneous Application No. 481 of 2025, which arose from an ongoing judicial review case [Miscellaneous Cause No. 0151 of 2025], filed by Evans Kaganizo Mutesasira and Nathan Kakson Twinomujuni. The two applicants are former leaders of the Uganda Liberal Teachers Union Members Savings and Credit Cooperative Society Ltd [ULITU SACCO].
They had petitioned the court to issue a temporary injunction to halt the decisions made during SACCO special meetings held on February 8, and March 29, 2025, which led to their removal from leadership, alleged blocking of bank accounts, and other administrative changes. The respondents in the case included the SACCO, the Registrar of Cooperative Societies, and the new office bearers, Andrew Kwete Andrew and Duncan Muramuzi.
Applicants allege breach of natural justice
The applicants had argued that their removal violated the SACCO’s bylaws and the Constitution, particularly Articles 28, 42, and 44, which guarantee the right to a fair hearing. They claimed they were never given notice or an opportunity to respond to any allegations prior to their dismissal, and further alleged that the decisions taken were procedurally irregular and irrational.
Their legal team cited multiple precedents, including the seminal Kiyimba Kaggwa v Hajj Nasser Katende [1985] HCB 43, to argue that they had established a prima facie case warranting interim relief. They also noted a directive from the Minister of Trade, Industry and Cooperatives that purportedly called for their reinstatement — a directive they argued had been honoured by the SACCO’s bank.
Respondents argue application was moot
However, the respondents, represented by Nandaah Wamukoota & Co Advocates, submitted that the application had been overtaken by events, noting that new signatories were already in place, leadership changes had been implemented, and business was proceeding without disruption.
They contended that granting the injunction would nullify binding resolutions passed at the SACCO’s Special General Meeting and disrupt ongoing operations. The respondents also questioned the legal standing of the minister’s directive, arguing that only the Registrar of Cooperatives has authority over SACCO management under the Cooperative Societies Act.
Court: No irreparable harm, no status quo to preserve
In his ruling, Justice Teko held that while the applicants had raised serious triable issues regarding the procedural fairness of their removal, they had not demonstrated that they would suffer irreparable harm if the injunction was denied.
“There is no evidence adduced by the applicants that they are suffering real or actual damages that could not be compensated by an award of damages,” Justice Teko ruled, adding that reputational harm and loss of income were quantifiable and thus not sufficient grounds for injunctive relief.
The court also found that the status quo the applicants sought to preserve had already shifted, with Andrew Kwete Andrew, and Duncan Muramuzi now recognised as acting leaders following resolutions passed by SACCO members and registered by the Registrar.
“The status quo to be preserved is that which is on the ground currently managing the affairs of the SACCO,” the judge stated, quoting the precedent set in Humphrey Nzeyi v Bank of Uganda & Attorney General.
Fraud allegations loom over applicants
In a noteworthy observation, the court noted that both applicants were facing criminal charges before the Anti-Corruption Court over allegations of fraud and embezzlement totalling Shs 3.6 billion. These allegations, while not the subject of the judicial review, were part of the factual background and contributed to their suspension by SACCO leadership.
“The applicants were suspected of fraud and embezzlement… and are awaiting trial,” the ruling noted. However, Justice Teko clarified that the judicial review would focus only on the process of their removal, not the substance of the allegations.
No automatic right to injunction
Justice Teko underscored that a temporary injunction is an equitable remedy and not granted as of right. Courts must exercise discretion judiciously, weighing all legal and factual considerations.
“The SACCO is likely to suffer if it does not have an active administrative structure managing its affairs. None of the individuals, whether in or out of office, can claim personal loss from not being part of the administration,” he said.
Outcome and next steps
The court dismissed the application for a temporary injunction, noting that the main application for judicial review would proceed and offer the appropriate forum to assess the legality of the decisions in question.
“The parties should await a date for the hearing of the main application so that the issues in contest are dealt with and resolved holistically,” Justice Teko concluded.
Costs were reserved to abide the outcome of the main application.
https://thecooperator.news/teso-teachers-saccos-to-receive-additional-govt-funding/
Buy your copy of thecooperator magazine from one of our country-wide vending points or an e-copy on emag.thecooperator.news
