Court Clears Arrest Of City Lawyer Mugoya Over UGX1.4bn Debt Dispute With Bank Of Africa

The High Court’s Land Division in Uganda has ordered the renewal of arrest warrant and detention in civil prison of city lawyer, Mugoya Kyawa Gaster in a dispute arising from a long-running loan and land case with Bank of Africa.

In Bank of Africa v Mugoya Kyawa Gaster (Civil Reference 2 of 2025) [2026] UGHCLD 220 ruling delivered on 25 June 2026 by Hon. Lady Justice P. Basaza-Wasswa, the court held that execution should be issued for the outstanding decretal sum owed under a 2013 consent judgment, which the bank said had grown to UGX 1,489,114,477.

The matter began in HCCS No. 319 of 2013, when Mugoya sued the bank over his property at Kyadondo Block 185 Plot 5912 at Namugongo, Wakiso District, which he had mortgaged to the bank. The case was later settled by consent on 6 September 2013, with Mugoya agreeing to clear his loan balance and costs. Under this arrangement, Mugoya was to pay the bank in three instalments of 100 million, 160 million, and 160 million. He did not pay.

Bank of Africa later sought enforcement through EMA No. 0276 of 2024, after an earlier warrant issued on 24 October 2025 expired on 20 November 2025.

Mugoya objected, arguing that the same decree was also being pursued in the Commercial Division through Bankruptcy Petition No. 10 of 2017, and that he should not face two forms of execution at once.

But the court found that the bankruptcy process had not been formally pursued and had effectively been abandoned after the parties reached an out-of-court settlement on 17 April 2026, and it ordered Mugoya to pay the costs of both the reference and the enforcement application.

“In the result, it is my ruling that execution should issue against Mr. Mugoya by way of a warrant of arrest and detention in civil prison for satisfaction of the outstanding decretal sum in Civil Suit No. 319 of 2013. The A/Registrar is accordingly directed to issue a renewed warrant of arrest and detention against Mr. Mugoya for that purpose. Mr. Mugoya shall pay the costs of this reference and of EMA No. 276 of 2024 to M/s Bank of Africa. Section 27 of the CPA is applied,’’ said the Judge.