Ham wins sh41b court case

Hamis Kigundu “Ham” has won the sh41b loan case against Diamond Trust Bank (DTB-Kenya).

Commercial Court head Justice Henry Peter Adonyo on Wednesday (October 7, 2020) ruled that the credit facilities DTB-Kenya offered to Kiggundu are illegal since it is not licensed by Bank of Uganda as required under the law to carry out financial business in Uganda.

“The act of DTB-Kenya in conducting financial business is licenced in Kenya and it therefore illegally offered the facilities in Uganda. Consequently, this application is allowed with costs,” Adonyo ruled.  

In March this year, Kiggundu and his two companies Ham Enterprise Limited and Kiggs International (U) limited dragged DTB -Uganda and DTB-Kenya to the Commercial Court accusing them of fraudulently siphoning over sh120b from his accounts without his knowledge and consent.    

Kiggundu argued that it was illegal for DTB Uganda to appoint DTB Kenya as the agent bank and security agent in respect to its loan.      
He also wanted an order for unconditional discharge of mortgages created over his properties comprised in Kyadondo Block 248, Plot 328 land at Kawuku, FRV 1533, Folio 3, plot 36-38, Victoria crescent II Kyadondo and LRV 3176 folio 10, plot 923, Block 9 located at Makerere Hill Road and all cooperate and guarantees issued to the banks.      

DTB-Kenya head of debt recovery and company secretary Stephen Kodumbe however contended that the bank never conducted any business in Uganda and the credit facilities were offered in Kenya.  

Mr. Kiggundu contested that between February 2011 and August 2018 through his companies Ham Enterprises ltd and Kiggs International Uganda LTD was offered credit facilities by the bank for the construction of commercial building  

According to the bank, Ham Enterprise Limited is indebted to a tune of $6,298,380 on term loan facility of $6,663,453 and sh2.8b on the demand overdraft facility of sh1.5b, temporary demand overdraft facility of sh1b; $3,662,241 on the term loan facility of $4,000,000 and $4458,604 on the term loan facility of $500,000. 

He argued that DTB-Uganda did not act as agent of DTB-Kenya to conduct business in Uganda but only sought its services as a collection agent for it to receive its payments from Ham Enterprises Limited.  

The banks through their lawyer Kiryowa Kiwanuka claimed that the case only sought to delay Kiggundu’s payment obligations and ought to be dismissed with costs because he purportedly failed to service credit facilities and is in default of payments obligations.  

Leave a Reply

Your e-mail address will not be published. Required fields are marked *