Commercial Court Building/ Courtesy photo
High Court’s Commercial Division has dismissed a bid by businessman and former property developer, Sendyona Mukasa Edward to be declared bankrupt, paving the way for Equity Bank Uganda to sell his remaining home to recover an outstanding loan.
In a case filed as Bankruptcy Cause No. 3 of 2025, Mukasa, a former supermarket and real estate investor, petitioned for bankruptcy under the Insolvency Act, saying his Ark Supermarket business in Kyaliwajjala collapsed during the Covid-19 pandemic, forcing him to sell family land and still fall behind on an Shs80 million loan obtained in 2018.
It was secured against two condominium units in Kyaliwajjala, Wakiso District.
In defense, Equity Bank told court that it had restructured the loan in 2023 to Shs100 million, releasing one title after Mukasa paid Shs40 million, but that he defaulted on the remaining Shs60 million, with the balance now standing at about Shs 84.2 million.
In a ruling delivered on May 31, 2026, Lady Justice Dr. Ginamia Melody Ngwatu held that Mukasa had failed to prove he was unable to pay his debts, noting he had been unemployed for 12 years even when he took the loan and knowingly mortgaged his family home.
Warning against using bankruptcy to evade legitimate obligations, the judge emphasized that banks lend depositors’ money and are entitled to enforce securities.
The court dismissed the petition and granted Equity Bank liberty to exercise its statutory power of sale over the remaining condominium unit, and ordered Mukasa to pay the costs of the petition.
But govt has bailed so many so called inestors out of bankruptcy why not ssendyona please?
Economic agony