Kampala, Uganda: The high-stakes commercial dispute between Muwema & Co. Advocates and landlord Downtown Investments Ltd. has escalated into a complex legal and criminal battle, drawing scrutiny from Kampala’s business and legal circles.
At the centre of the fallout is a disagreement over rent arrears, a disputed option to purchase prime Kololo property, and allegations of robbery following the firm’s dramatic eviction from Plot 50 Windsor Crescent Road.
The firm’s Managing Partner, Senior Counsel Fred Muwema, insists the conflict is not about unpaid rent but a failed property transaction. “The lease also gave us an option to purchase the property,” Muwema said, explaining that the firm exercised that option in August 2021 with an offer of $1.05 million based on market valuation.
According to him, the firm had invested heavily in renovating the premises since occupying it in 2014, citing repairs to roofing, plumbing, and electrical systems. “We invested quite a bit… because we had the option to buy,” he said.
However, negotiations reportedly stalled following the illness and eventual death of landlord representative Tusha Ruparelia in December 2021.
Muwema argues that invoking the purchase clause altered the legal relationship. “When you exercise an option to purchase, you cease to be a tenant… you become a purchaser,” he said.
Landlord claims rent arrears, court rules
The landlord, Downtown Investments, maintained that the firm remained a tenant and accumulated rent arrears amounting to $148,300, and the dispute proceeded to the Commercial Division of the High Court, where Justice Patricia Mutesi ruled in favour of the landlord.
In her February 20 decision, the court ordered the law firm to pay over $372,000 in rent arrears, damages, and mesne profits, and to vacate the premises.
Muwema has since challenged the ruling, particularly questioning the computation of mesne profits. “Mesne profits must be clearly pleaded and particularised. We do not know where the figure came from,” he argued.
The dispute took a dramatic turn following the firm’s eviction in early March.
According to the landlord, a re-entry exercise was conducted in the presence of police and local authorities, and an inventory of removed items was prepared.
However, the law firm has rejected this account, describing the eviction as unlawful and alleging criminal conduct. “You took the firm’s property by armed force during the illegal eviction,” the firm stated in correspondence.
Muwema & Co. has since filed a criminal complaint accusing the landlord’s agents of aggravated robbery, claiming that sensitive materials, including over 1,000 legal files, computers, and cash, were seized. “Our work is document-based… the seizure disrupted many transactions and court matters,” Muwema said.
Relocation and ongoing legal battle
The firm has since relocated operations to Nakasero Road and is working to restore services. Despite the move, the dispute remains unresolved, with parallel legal proceedings and police investigations ongoing.
Legal observers say the case highlights critical gaps in Uganda’s commercial property framework, particularly around the interpretation of option-to-purchase clauses, enforcement of tenancy obligations during disputes, and handling of evictions involving business premises
The saga also highlights how informal negotiations and unforeseen circumstances, such as illness or death of key parties, can derail contractual processes.
As the case unfolds, it is expected to set important precedents for landlord-tenant relations and commercial property law in Uganda.
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