KAMPALA, UGANDA; Prominent Kampala lawyers Fred Muwema and Friday Kagoro have been dealt a major blow in a long-running property dispute, with the High Court’s Commercial Division ordering their firm to pay more than $372,300 in outstanding rent and profits, plus damages, and to immediately vacate their upscale offices in Kololo.
In a 28-page judgment delivered Friday by Justice Patricia Mutesi, the court ruled against M/S Muwema & Co. Advocates, finding the firm liable for breaching a 2014 lease agreement with landlord Downtown Investments Ltd. The defendants, including Muwema and Kagoro as partners, were ordered to hand over vacant possession of the property at Plot 50 Windsor Crescent Road and face eviction if they fail to comply.
The case stemmed from a five-year lease signed in December 2014, under which the law firm agreed to pay $5,000 monthly plus VAT for the Kololo premises, with a 10% annual increase after the first two years. The lease expired in 2019, but the firm continued occupying the space, leading to disputes over rent payments and an attempted purchase.
Downtown Investments sued in 2023, seeking $148,300 in arrears, mesne profits for wrongful occupation, general damages, interest, and costs.
The plaintiff argued the tenants had defaulted repeatedly, paying late or not at all, despite demand notices and partial settlement of $50,000 in June 2023. Efforts to re-enter the premises after terminating the lease in May and July 2023 were thwarted.
In defense, Muwema and Kagoro contended the rent hikes were never mutually agreed upon and claimed over $850,000 had been paid overall. They asserted spending $186,000 on repairs to the “desolate” property, which the landlord failed to reimburse. Crucially, they invoked a lease clause granting first option to buy, offering $1,050,000 in August 2021.
They argued this shifted their status from tenants to buyers, with post-offer payments counting toward the purchase price.
Justice Mutesi rejected these claims. She found no sale occurred, as the offer was not accepted, maintaining the landlord-tenant relationship.
“It is inconceivable that any person… would believe that there was an actual or putative sale,” she wrote, citing contract law requiring absolute acceptance.
The court deemed the rent increases automatic and upheld the arrears calculation. It dismissed the repair costs as unproven, lacking receipts or prior written approval, and noted the firm’s payments up to 2021 implied acceptance of terms.
On the counterclaim alleging the landlord breached by not concluding the sale or reimbursing repairs, the judge ruled the option merely entitled first consideration, not guaranteed purchase. The landlord’s verbal response acknowledging the low offer sufficed, and no formal reply was contractually required. Repair claims failed for evidential gaps and contractual allocation of responsibilities.
Reliefs granted include $148,300 in arrears, $224,000 in mesne profits at $7,000 monthly from June 2023 to January 2026, and 50 million Ugandan shillings ($13,500) in general damages. Interest accrues at 6% on arrears and profits, 13% on damages.
Costs go to the plaintiff.
The ruling is a big set back to city advocate Muwema, known for high- profile cases, and Kagoro, a senior partner.
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