Kenya recently witnessed a legal battle between former Cabinet Secretary Raphael Tuju and the East African Development Bank (EADB) over a loan he took back in 2015.
The dispute culminated in the auction of Tuju’s Dari Business Park in Karen, with police evicting the former MP from the premises.
Tuju’s ordeal mirrors a similar case in Uganda involving businessman Patrick Bitature.
The dispute in Uganda pits Bitature’s Simba Group against lenders linked to the East African Development Bank and South African-based Vantage Capital.
The legal tussle dates back to December 2014, when Simba Properties secured a $10 million loan facility.
A key feature of the agreement was a London arbitration clause, meaning any disputes arising from the contract would be resolved in the United Kingdom (UK) rather than in Ugandan courts.
In May 2022, Uganda’s High Court delivered a significant ruling in favour of Bitature. Justice Musa Ssekaana found that the lender lacked legal standing to enforce its claims in Uganda, citing failure to register as a business entity in the country.
However, in July 2023, a London-based arbitration tribunal issued an award ordering repayment of more than $30 million, tripling the original loan amount due to accrued interest and penalties.
The ruling by the tribunal intensified the dispute, as the lenders moved to enforce the award in Uganda.
Uganda’s Court of Appeal in August 2025 overturned the earlier ruling by the High Court, allowing the lenders to proceed with enforcement despite earlier concerns over their legal status in the country.
The decision cleared the way for potential asset auctions, raising concerns among observers about the balance between international arbitration agreements and domestic legal protections.
The matter was appealed in Uganda’s Supreme Court, and on March 19, 2026, Justice Elizabeth Musoke granted an interim stay of execution, temporarily halting enforcement actions against the properties.
The stay offers temporary relief to Bitature as the court prepares to hear the substantive appeal.
The case has since sparked a debate online over the use of international arbitration clauses in commercial contracts and their implications for local businesses.
