Uganda Case Law

Geomax Engineering Limited and Others v HCB Financial Services Limited

Geomax Engineering Limited and Others v HCB Financial Services Limited (Miscellaneous Application No. 2349 of 2024) [2025] UGCommC 93 (16 May 2025)

Court

Commercial Court of Uganda

Case number

Miscellaneous Application No. 2349 of 2024

Judge

Dr. Ginamia Melody Ngwatu, J

The court found that the applicants had raised genuine disputes regarding the amount borrowed, the nature of the agreement between the parties, and the interest rates charged. These contentions constitute triable issues of fact and law, particularly as to whether the respondent inflated the claim and whether the agreement was a deed of assignment or a money lending contract. The applicants also challenged the capacity in which the 2nd and 3rd applicants were sued and the unconscionability of the interest rates. Applying the principles under Order 36 of the Civil Procedure Rules and the author…

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• Summary Procedure
• Leave To Defend
• Loan Disputes
• Guarantees
• Excessive Interest
• Triable Issues

Mambasa v Ibalu Associates Limited & Another

Mambasa v Ibalu Associates Limited & Another (Civil Suit 61 of 2024) [2024] UGHC 657 (25 June 2024)

Court

High Court of Uganda

Case number

Civil Suit 61 of 2024

Judge

David S.L. Makumbi, J

The Plaintiff's cause of action is primarily founded on grounds covered by Section 89(1) of the Tier 4 Microfinance Institutions and Money Lenders Act and Regulation 26 of the corresponding Regulations, namely excessive interest and unconscionable terms. Regulation 26 is mandatory and requires that any application to reopen a money lending transaction be brought by Notice of Motion, not by plaint. The Plaintiff's argument that the absence of a Money Lender's licence exempts the transaction from the procedural requirements is untenable, as the court must still apply the relevant money lending…

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• Money Lending Transactions
• Procedural Requirements
• Excessive Interest
• Unconscionable Contracts

Jayanth Amratlal Bhimji & Anor v Prime Finane Co Ltd (HCT-00-CC-MA 225 of 2008)

Jayanth Amratlal Bhimji & Anor v Prime Finane Co Ltd (HCT-00-CC-MA 225 of 2008) [2011] UGCommC 101 (17 April 2011)

Court

Commercial Court of Uganda

Case number

HCT-00-CC-MA 225 of 2008

The court set aside a summary judgment, allowed leave to defend, and required the applicants to deposit the principal sum, citing counsel’s mistake and possible unlawful interest.

• Summary Procedure
• Money Lending Regulation
• Excessive Interest
• Setting Aside Judgment
• Mistake Of Counsel
• Summary-procedure

Shine Pay (U) Ltd v Kiyonga Francis - (HCT-00-CC-CS 547 of 2004)

Shine Pay (U) Ltd v Kiyonga Francis - (HCT-00-CC-CS 547 of 2004) [2006] UGCommC 8 (26 March 2006)

Court

Commercial Court of Uganda

Case number

HCT-00-CC-CS 547 of 2004

The court found that the defendant was indebted to the plaintiff in the sum of US $2,639 under a loan agreement. Although the agreement provided for a penalty interest of 15% per month on defaulted instalments, the court held that this rate, amounting to 180% per annum, was manifestly excessive and unconscionable, especially given the friendly nature of the loan. The court exercised its discretion to award interest at a commercial rate of 25% per annum from the date of filing the suit until payment in full. The plaintiff was also awarded costs of the suit, with interest at the court rate from…

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• Loan Agreements
• Contractual Interest
• Summary Procedure
• Excessive Interest
• Discretionary Interest Award

Alpha international Investments Ltd v Nathan Kizito (High Court Civil Suit No. 131 of 2001)

Alpha international Investments Ltd v Nathan Kizito (High Court Civil Suit No. 131 of 2001) [2003] UGCommC 7 (21 April 2003)

Court

Commercial Court of Uganda

Case number

High Court Civil Suit No. 131 of 2001

The High Court reduced a money loan interest rate from 20% per month to 24% per annum, finding the original rate excessive and unconscionable.

• Money Lending Regulation
• Excessive Interest
• Unconscionable Contracts
• Summary Suit Procedure
• Money-lending
• Excessive-interest