Diamond Trust Bank (DTB) has instructed its lawyers, K&K Advocates, to initiate the process of selling two properties in Soroti linked to firms associated with Capt Mike Mukula, a businessman and prominent politician, over an unpaid loan of Shs 3.4 billion.
The properties were pledged as security for loans given to businesses associated with Mukula, including Healingway Diagnostic and Fertility Centre, Red Shield and Arrow Security Systems.
The properties are registered under Teso Industries Limited, a company largely owned by Mukula.
In a notice of sale published in The New Vision on Monday, K&K Advocates said it had been instructed by DTB to sell the properties following default on loans advanced to the companies.
Kiryowa Kiwanuka, the Minister of Defence is a founding partner of K&K Advocates alongside Edwin Karugire, President Museveni’s son-in-law.
We understand that the enforcement action follows a restructuring of the debt in May 2025 when Shs 1.9 billion of the principal debt was restructured under a 48-month repayment plan.
Yet when you factor in the interest, the amount owed under the restructured facilities has now grown to Shs 3.42 billion, which DTB is seeking to recover by enforcing its security over the Teso Industries properties.
One of the properties on sale is a storeyed commercial building on Jumabhai Road in Soroti City. It houses offices of the National Social Security Fund (NSSF).
According to the notice, Mukula has 30 days to pay the outstanding debt or his property will be sold by the bank.
Until last year, Mukula was the vice chairman of the NRM in Eastern Uganda. He served as MP for Soroti Municipality from 1996 to 2006.
Outside politics, he has built a wide business portfolio spanning aviation, security services, real estate, health facilities and other ventures under the Mukula Group of Companies.
