Mukesh employees question court ruling on Shumuk house cccupation

8 January 2026, 10:53 am

By Ronald Ssemagonja

Some employees of businessman Shukla Mukesh have expressed dissatisfaction with a recent ruling by the Commercial Division of the High Court, which found that Mukesh and his companies were illegally occupying part of Shumuk House in Kampala.

The ruling affects Mukesh’s companies—Shumuk Springs Development Ltd, Springs International Development Hotel Ltd, and Shumuk Financial Services Ltd—and orders them to vacate 24 condominium units by 23 March 2026.

Speaking to reporters, a female employee identified as Hajarah Nankya (not her real name), who works at one of Mukesh’s forex bureaus in Kampala, described the ruling as unfair. She suggested the decision may have been influenced by individuals seeking to financially harm her employer.

“I think it was unfair. Even the period they gave him to pay and vacate is very short,” she said.

Another employee, Ivan Okuru (not his real name), shared similar concerns, saying the ruling did not favour either the workers or their employer.

“I read the ruling by Justice Mubiru and realised that it doesn’t favour us at all. The time given to my boss to vacate the 24 condominium units by 23 March 2026 is very short. This is my personal opinion, not that of my boss or the companies,” Okuru said.

The ruling follows a protracted legal battle involving the late city businessman Bonney Mwebesa Katatumba and Mukesh over ownership of the commercial property formerly known as Blacklines House, located at Plot 2 Colville Street, Kampala.

In addition to the main ownership dispute, the court also resolved a separate claim involving Joseph Ssempebwa and Peter Lule, who asserted interests in 24 of the 92 condominium units that make up Shumuk House.

In his decision, Justice Stephen Mubiru, formerly of the Commercial Division and now Resident Judge of Mukono, held that both Ssempebwa and Lule possess equitable interests in the property that cannot be extinguished.

“As regards the twenty-four of the ninety-two condominium units that are the subject of this suit, I find that the two agreements for the sale of property did not in any way affect the rights of the 1st counterclaimant Mr Joseph Ssempebwa, nor the eleven units which the 2nd counterclaimant Mr Peter Lule purchased from the late Bonney Mwebesa Katatumba,” Justice Mubiru ruled.

Court records show that Katatumba was the registered proprietor of the building under a 99-year lease that commenced on 1 March 1912 and expired on 1 March 2011. Before his death, Katatumba sold 13 condominium units to Virani Bahadukali Mohamedalli and 11 units to Peter Lule for $375,000. Mohamedalli later sold his units to Joseph Ssempebwa for $725,000.

However, Ssempebwa was never granted possession after discovering that Katatumba had lodged a caveat during the transfer process. Katatumba later entered into agreements to sell the entire 92-unit property, first to Shumuk Springs Development Ltd for $5 million, and later to Springs International Hotel Ltd for $4 million. Both agreements required partial payments to Mohamedalli and Lule to settle their interests, but court records show the transactions collapsed after the companies failed to fully pay the agreed sums.

Justice Mubiru found that Katatumba acted illegally by purporting to sell the entire property without resolving prior interests.

“Virani Bahadukali Mohamedalli owned the absolute, unconditional legal and exclusive title to the airspace of the specific units,” the judge ruled, adding that under the Registration of Titles Act, Mohamedalli lawfully transferred the units to Ssempebwa.

The court rejected attempts to bind Ssempebwa and Lule to later agreements between Katatumba and Mukesh’s companies.

“For lack of mutual agreement and consideration, a third party who never agreed to the contract cannot be bound by it,” Mubiru held.

The court ordered that Peter Lule, who took possession of his 11 units, be granted a lease and awarded Shs 50 million in general damages. Joseph Ssempebwa, who never accessed his 13 units, was awarded mesne profits amounting to $3,822,000, representing 196 months of lost rental income over 16 years, plus an additional $58,500, all attracting interest at six per cent.

Justice Mubiru further ordered Mukesh and his companies to vacate the 24 condominium units by 23 March 2026, warning that failure to comply would result in forced eviction.

The broader ownership dispute between Mukesh and the estate of the late Bonney Katatumba remains pending before the Court of Appeal. In an earlier decision, the High Court ruled in favour of the Katatumba estate and ordered Mukesh and his companies to pay Shs 10 billion in damages. The disputed land measures approximately one acre.