Kampala, Uganda: A detailed High Court judgment released last week lays bare years of rent arrears, lease breaches and continued occupation that culminated in a Shs1.4 billion financial blow against city law firm M/S Muwema & Co. Advocates and its proprietors.
In a ruling delivered on Friday, February 20, 2026, the High Court (Commercial Division) ordered the firm to pay rent arrears of $148,300 (approximately Shs529.87 million), mesne profits of $224,000 (about Shs800.34 million), and Shs50 million in general damages to Downtown Investments Ltd, the registered proprietor of the prime property at Plot 50 Windsor Crescent Road, Kololo.
The dispute traces back to a lease agreement signed on December 15, 2014, between the law firm and Downtown Investments Ltd. Court records show the firm took possession of the premises but repeatedly defaulted on rent payments.
“The evidence adduced by the Plaintiff proved that the 1st Defendant (law firm) has held onto the leased premises since the inception of the lease agreement while committing several breaches of the lease agreement through delays in paying the rent or not paying the rent at all,” ruled Justice Patricia Mutesi.
According to the court, unpaid rent steadily accumulated to $148,300 despite reminders and formal demands from the landlord. The tenancy was formally terminated through lawyers’ letters dated May 30 and July 5, 2023.
“The evidence also proved that, despite the Plaintiff’s termination of the lease agreement and demands that the 1st Defendant vacate the leased premises, to this day, the 1st Defendant is still occupying the leased premises without paying all the due rent,” the judge stated.
The law firm, alongside its proprietors Mr Fred Muwema and Friday Kagoro, contested the claim, challenging the landlord’s ownership and disputing liability for arrears and damages. They argued that they were lawfully in occupation and claimed entitlement to remain on the premises.
However, the court rejected those submissions.
“The defendants failed to demonstrate any valid lease, licence or legal interest that would entitle them to remain on the suit property,” Justice Mutesi held.
The court concluded that once the lease was terminated, the firm’s continued occupation amounted to trespass. On that basis, it awarded rent arrears, general damages and mesne profits for wrongful possession, and ordered immediate vacant possession.
“The defendants are hereby ordered to vacate the suit premises and deliver vacant possession to the plaintiff forthwith,” the judgment read.
The court further authorised eviction through court bailiffs should the firm fail to comply voluntarily. Failure to pay the decretal sums exposes the defendants to execution proceedings, including attachment of property and bank accounts, with interest continuing to accrue until full settlement. The firm was also ordered to pay costs of the suit.
In a press statement dated February 21, the law firm rejected the ruling, citing what it termed factual and legal inconsistencies. The firm argued that the court failed to consider evidence of a $130,000 (about Shs464.48 million) payment toward rent arrears and faulted the award of mesne profits, saying they were neither properly pleaded nor proved.
“We are dissatisfied with the judgment of the Court due to its factual and legal inconsistencies, which contradict established precedent. We, therefore, intend to appeal the decision,” the statement read in part.
The firm also challenged the court’s finding that it did not validly exercise an option to purchase the Kololo property.
The ruling now clears the way for Downtown Investments Ltd to recover possession of the property and pursue enforcement proceedings if compliance is not forthcoming.
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