Court Delivers Blow to Prominent Lawyers: Muwema & Co. Ordered to Pay Over Shs1.4bn, Vacate Kololo Offices in Lease Fiasco

2026-02-21 - 09:27

KAMPALA – In a stinging rebuke to one of Uganda’s high-profile law firms, the High Court’s Commercial Division has slapped M/S Muwema & Co. Advocates with a hefty financial penalty and an eviction order, exposing the perils of blurred lines between tenancy and ownership in Kampala’s cutthroat property market. The February 20, 2026, ruling by Hon. Lady Justice Patricia Mutesi underscores a fundamental truth: informal deals and unaccepted offers won’t shield tenants from the full weight of lease obligations. The case, Civil Suit No. 0621 of 2023, pits Downtown Investments Ltd against the firm and its partners, Fred Muwema and Friday Kagoro – seasoned litigators known for tackling politically charged battles, from election petitions to corporate showdowns. What began as a standard commercial lease in 2014 has spiraled into a multimillion-dollar debacle, highlighting how even legal eagles can falter in their own backyard. Back in December 2014, Muwema & Co. inked a five-year lease for prime office space at Plot 50 Windsor Crescent Road in upscale Kololo. The terms were clear: USD 5,000 monthly rent plus VAT, with a 10% annual hike kicking in after the first two years. The property, described by the firm as “desolate” upon entry, was transformed at their expense – they claim to have sunk over USD 186,000 into renovations, expecting reimbursement or credit toward a potential buyout. But trouble brewed as the lease expired in 2019. The firm lingered on, paying sporadically while invoking Clause 5 of the agreement, which granted them the first option to purchase. In August 2021, they tabled a USD 1,050,000 offer, arguing that subsequent payments should count toward the sale price. Downtown Investments, however, saw it differently: no acceptance meant no deal, and the relationship remained strictly landlord-tenant. Demand notices for arrears piled up, culminating in a partial USD 50,000 settlement in June 2023. When the landlord tried to re-enter the premises in May and July that year, they were rebuffed, prompting the lawsuit. Justice Mutesi’s 28-page judgment dismantles the firm’s defenses brick by brick. She ruled the lease breached through non-payment and unlawful occupation, rejecting claims of an implied sale. “It is inconceivable that any person... would believe that there was an actual or putative sale,” the judge stated, citing contract law’s demand for explicit acceptance. The purchase option, she clarified, merely afforded first consideration – not a guaranteed transfer. Renovation costs? Dismissed for lack of receipts, prior approval, or evidence tying them to the lease terms. The financial sting is severe: USD 148,300 in rent arrears, USD 224,000 in mesne profits (calculated at USD 7,000 monthly from June 2023 to January 2026), and UGX 50 million in general damages. Add 6% interest on arrears and profits, plus 13% on damages, and the total balloons to approximately UGX 1.41 billion. The firm must vacate immediately, hand over vacant possession, and cover the plaintiff’s costs. Failure invites forced eviction – a humiliating prospect for lawyers who pride themselves on courtroom victories. This isn’t just a property spat; it’s a cautionary tale for Uganda’s booming commercial real estate sector. In a city where prime Kololo addresses command premium rents amid economic pressures, the ruling reinforces landlords’ leverage in enforcing strict terms. Legal experts whisper that it could deter tenants from overreaching on informal negotiations, especially in an era of rising disputes fueled by post-COVID market volatility. “Courts are signaling zero tolerance for ambiguity in high-stakes contracts,” one Kampala-based attorney told Watchdog Uganda on condition of anonymity. “Even prominent firms aren’t above the law.” For Muwema and Kagoro, the fallout extends beyond the wallet. Their firm, a fixture in Uganda’s legal landscape for decades, has handled landmark cases – think the 2021 presidential petition or corporate fraud probes. This loss could dent their reputation, raising eyebrows among clients who expect flawless navigation of legal minefields. Sources close to the firm hint at an appeal within the 30-day window, potentially dragging the saga into appellate courts. But with the eviction clock ticking, relocation looms large, disrupting operations at a time when the legal industry grapples with competition from multinational players. Downtown Investments, meanwhile, emerges vindicated, their pursuit of justice spotlighting the risks of protracted tenancies. The company, linked to real estate heavyweights, declined comment, but the win bolsters their portfolio in Kololo’s elite enclave. As Kampala’s skyline evolves, this case serves as Day 2 reflection: yesterday’s breaking news of the ruling now prompts deeper questions. How many similar disputes simmer unspoken? Will this prompt tighter lease drafting or legislative tweaks to protect tenants’ rights? In a nation where property rights often intersect with power dynamics, Muwema’s tumble reminds us – tenancy is tenancy, until the ink says otherwise.