The Commercial Court in Kampala has ordered former Uganda Cranes captain Andy Mwesigwa to deposit Shs392 million as security before his case against ABC Capital Bank Limited can proceed.
The amount represents 30 per cent of the Shs1.3 billion that the bank claims Mwesigwa owes following the failure to repay a loan secured against his school in Wakiso District.
In a ruling delivered on August 4, 2026, Assistant Registrar Christa Namutebi ordered Amesco High School Wakiso-SMC Limited, formerly known as Andy Mwesigwa Comprehensive High School-SMC Limited, to deposit the money within 30 days.
Mwesigwa is the proprietor of the school.
Despite ordering the payment of security, the court temporarily stopped ABC Capital Bank and its agents from selling the school’s property until the main case is determined.
The property, located at Busiro Block 214, Plot 130 in Bugwanya, Kakiri, Wakiso District, had been advertised for sale after the school fell behind on its loan repayments.
Mwesigwa had asked the court to stop the planned sale, arguing that losing the school would affect more than 350 students and damage the institution’s reputation.
According to court documents, ABC Capital Bank issued a notice of sale on March 10, 2026, claiming that the outstanding loan had risen to Shs1.3 billion. The property was subsequently advertised for sale on May 22.
How the dispute started
The dispute dates back to December 30, 2019, when Mwesigwa’s school obtained a Shs480 million loan from ABC Capital Bank.
The facility carried an annual interest rate of 23.5 per cent and was supposed to be repaid in 16 termly instalments of Shs54.67 million each.
The instalments were due on February 20, June 20 and October 20 each year.
Mwesigwa told court that the loan was obtained to refinance an existing facility with Equity Bank Uganda Limited and complete the construction of two classroom blocks at the school.
However, loan records show that the school did not consistently make the required repayments on time. The overdue amounts attracted penal interest, causing the outstanding balance to increase.
The bank subsequently began recovery proceedings, issuing several statutory notices of default and sale between March 25, 2021 and March 11, 2026.
Mwesigwa said the financial difficulties worsened after the outbreak of COVID-19. He asked the bank to waive interest after the outstanding balance increased from Shs480 million to Shs761 million.
According to Mwesigwa, the bank later told him that interest for 2022 had been revised in line with Bank of Uganda directives and invited him to sign a loan restructuring offer.
He argues, however, that the bank has never provided a clear and verifiable statement showing how the COVID-19-related interest reversal was calculated.
Mwesigwa also questioned whether penalties and compounded interest had been suspended, whether all ineligible charges had been removed and whether the resulting loan balance was accurate and lawful.
ABC Capital Bank disputes his position.
The bank told court that the loan account was written off on June 28, 2024, when the outstanding balance stood at Shs787 million.
However, the bank maintained that the write-off did not cancel or extinguish Mwesigwa’s obligation to repay the loan, as provided for under the terms of the loan offer.
The Commercial Court will now proceed with the main dispute over the loan, while the order blocking the sale of the school property remains in place.
