A prominent Ugandan businessman, Haruna Sentongo, has lost a legal battle against I&M Bank Uganda Limited. The Court of Appeal has ruled that Mr. Sentongo must pay the bank UGX 10.3 billion, plus interest and damages.
The dispute began in January 2019, when the bank, then known as Orient Bank Limited, sued Mr. Sentongo for failing to repay a loan. The bank claimed that Mr. Sentongo had borrowed UGX 10.3 billion and had failed to make repayments.
In December 2022, the High Court Commercial Division ruled in favor of the bank, ordering Mr. Sentongo to pay the outstanding amount, plus UGX 150 million in damages and an annual interest rate of 22% from the first default date until full payment.
Mr. Sentongo appealed the decision, alleging that the bank had breached its contract with him and had failed to fulfill its fiduciary duties. He also claimed that the bank had misrepresented the terms of the loan and had used undue influence to secure the loan agreement.
However, the Court of Appeal has dismissed Mr. Sentongo’s appeal, ruling that he is liable for the debt. The court has ordered Mr. Sentongo to pay an annual interest rate of 12.5% from January 2019 until full repayment. The bank has also been awarded UGX 150 million in general damages, subject to a 6% annual interest rate from the judgment date.
The case has significant implications for Mr. Sentongo, who now faces the challenge of settling the substantial debt. The court’s decision is also likely to have implications for the wider business community in Uganda.
Discussion about this post