ABC Capital Bank has sued former Uganda Cranes captain Andy Mwesigwa for defamation, accusing him of making false and malicious statements about the bank during a dispute over a loan obtained by his Amesco High School in Wakiso.
The bank filed the suit in the High Court in Kampala on August 20, 2026, seeking damages, a public apology and retraction, and a permanent order stopping Mwesigwa from making further allegedly defamatory statements.
The bank is also seeking punitive and exemplary damages, interest at 25% per annum from the date of filing the suit until payment in full, and costs of the case.
The dispute stems from Mwesigwa’s public appeal to the government and wellwishers to intervene in the matter. He reportedly accused “sports mafias” of working with ABC Capital Bank to take over his school.
ABC Capital says Mwesigwa also accused the bank of imposing an unlawful monthly interest rate of 30%, which he claimed was not part of the original loan agreement.
The bank denies the allegations and says its dealings with Mwesigwa have been lawful and consistent with the loan agreement and the laws governing debt recovery.
According to the bank, Amesco High School obtained a Shs480 million term loan on a reducing-balance basis. The loan schedule, created on January 2, 2020, provided for 16 instalments and had a contractual maturity date of February 12, 2025.
ABC Capital says the effective interest rate was 23.5%, while the contractual penal rate was 38.5%, made up of the normal 23.5% interest and a 15% penalty.
The bank claims Mwesigwa failed to consistently make the required instalment payments on time, resulting in the accumulation of penalties and interest.
Its records show that Mwesigwa paid Shs338.4 million towards the loan, but ABC Capital says the payments were not enough to clear the outstanding obligations.
The bank says the loan account was written off on June 28, 2024, when the outstanding balance stood at Shs787.4 million. It, however, maintains that the write-off did not cancel or waive Mwesigwa’s obligation to repay the debt.
According to the bank, the total amount owed had risen to Shs1.28 billion by May 18, 2026, including applicable interest and penalties.
Dispute over school property
The loan dispute has also triggered separate court proceedings over property used as security for the loan.
ABC Capital says court rulings issued on July 30 and August 4, 2026, granted Mwesigwa a conditional temporary injunction against the bank’s recovery process.
The condition required him to deposit 30% of the outstanding liability in court within 30 days. The bank puts the required amount at Shs392.3 million.
ABC Capital argues that Mwesigwa’s public statements were intended to pressure the bank and influence public opinion while the matter was already before court.
The bank claims the statements portrayed it as a dishonest and fraudulent financial institution that colludes with “sports mafias” to seize borrowers’ property and impose illegal interest rates.
It further claims the allegations damaged its reputation among existing and potential customers and forced it to spend money on public relations and communication efforts to counter what it describes as a false narrative.
The bank alleges that Mwesigwa, because of his public profile, had a responsibility to verify the allegations before publishing them. It accuses him of acting with reckless disregard for the truth and with malice.
ABC Capital says the statements amounted to libel and exposed the bank to hatred, contempt and ridicule.
It wants the High Court to declare Mwesigwa liable for defamation and permanently restrain him, his agents and servants from publishing similar statements about the bank.
The bank is also asking court to order Mwesigwa to issue an unconditional public retraction through a media outlet with wide circulation, with prominence equal to that of the original publications.
It further wants him to publish an apology in a newspaper of nationwide circulation and on his social media platforms.
ABC Capital says it will rely on screenshots of the alleged publications, court rulings and other documents, and has listed its officials as witnesses.
The allegations contained in the plaint have not yet been determined by court, and Mwesigwa has yet to respond to the suit.
