Kampala, Uganda: The Court of Appeal has ordered Muwema & Co Advocates to provide security of US$100,000, approximately UGX 370 million, as a condition for halting further execution in its long-running, high-stakes Kololo property dispute with Downtown Investments Ltd.
The order was issued by Justice John Mike Musisi in M/S Muwema & Co Advocates v Downtown Investments Ltd [2026] UGCA 238, arising from the dispute over premises at Plot 50, Windsor Crescent in Kololo.
The Court stayed execution of the monetary component of an earlier High Court decree, including rent arrears, mesne profits, general damages, interest and costs, pending determination of Muwema & Co’s intended appeal.
Muwema & Co has been given one month to provide the security, either by depositing the money in court or presenting an unconditional bank guarantee from a reputable commercial bank. Failure to comply within the stipulated period will automatically cause the stay to lapse.
The Court also halted attachment, garnishee and taxation proceedings arising from the decree after Justice Musisi found that the intended appeal raised arguable issues, particularly regarding the interpretation of a clause in the lease agreement that gave Muwema & Co a first option to purchase the property.
The dispute centres on whether the law firm’s US$1.05 million offer in August 2021 amounted to a valid exercise of that option or whether it remained an unaccepted proposal, leaving the landlord-tenant relationship intact.
The High Court’s Commercial Division ruled in February 2026 that no concluded sale had been reached and held that rent continued to accrue.
Downtown Investments was subsequently awarded US$148,300 in rent arrears, US$224,000 in mesne profits and Shs50 million in general damages, in addition to interest and costs, but Muwema & Co appealed the decision and sought a stay of execution.
In the latest ruling, the Court of Appeal said the substantive questions surrounding the purchase option, the payments made after the firm’s 2021 offer and the award of mesne profits should be determined by the appellate panel hearing the appeal.
However, the Court declined to reverse the eviction of Muwema & Co from the Kololo premises, noting that Downtown Investments had already regained possession.
Justice Musisi held that a stay of execution could not restore a situation that had already changed, adding that any dispute over the legality of the repossession would have to be pursued separately.
The Court also considered the risk posed by further enforcement measures, including attachment of properties belonging to the firm’s partners and garnishee proceedings involving its operating accounts.
Justice Musisi found that the threatened sale of properties belonging to partners who were not judgment debtors, as well as restrictions on the firm’s bank accounts, could cause harm that might not be adequately remedied later.
The Court therefore granted the conditional stay but rejected Muwema & Co’s argument that no security was necessary because Downtown Investments had already recovered possession of the property.
It also declined Downtown Investments’ request for security covering the entire monetary decree, settling instead on US$100,000.
The substantive appeal will now determine whether Muwema & Co validly exercised its right to purchase the high-value Kololo property and whether the High Court’s monetary awards should stand.
Case Background
The dispute dates back to a 2014 lease agreement between Downtown Investments Ltd and Muwema & Co Advocates for premises on Plot 50, Windsor Crescent, Kololo.
A clause in the agreement gave the law firm a first option to purchase the property. The parties later disagreed over whether Muwema & Co’s 2021 offer of US$1.05 million amounted to a completed exercise of that right.
The High Court found that no binding sale agreement had been concluded and ruled in favour of Downtown Investments, prompting the law firm to seek relief before the Court of Appeal.
If you would like your article/opinion to be published on Uganda’s most authoritative news platform, send your submission on: [email protected]. You can also follow DailyExpress on WhatsApp and on Twitter (X) for realtime updates.
