In 2011, Dr Rene Bakashaba and his wife, Ann, agreed to buy a flat in one of the National Housing estates in Naalya. The flat was valued at Shs 240 million and they paid a deposit of Shs 24 million or 10% as requested by National Housing. The flat was part of the Naalya Pride Apartments estate next to Quality Supermarket and was still under construction.
Bakasahaba and National Housing agreed that the remaining 90% will be paid in phases (50% when the building reached “shell” stage, and the final 40% on full completion).
The project, however, faced significant delays. By 2013, construction had not even started on their original unit (Flat A12). The couple requested a swap to another unit (Flat I22) in the same development, which National Housing approved with new terms. This time they wanted a 20% initial deposit.
The Bakashabas transferred their existing 10% but did not pay the extra 10%, relying on the original agreement.
Construction finally finished in 2019, but NHCC did not inform the couple about progress milestones, preventing them from making timely payments.
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In January 2020, NHCC demanded the full outstanding balance of Shs 216 million in one go. The Bakashabas contacted NHCC’s head of sales and marketing, Lillian Muleke, who allegedly advised them to secure mortgage financing and make an additional “goodwill” deposit. They paid another Shs 16 million and arranged a Shs 200 million loan from Y-Save Multi-Purpose Co-operative Society, even getting the property valued.
Before the loan could be disbursed, NHCC withdrew the offer on 29 January 2020, citing non-payment, and sold the unit to someone else. Feeling cheated, the Bakashabas sued in 2020, claiming breach of contract and seeking either the flat, its current market value, which was Shs 350 million by then, or an alternative unit at the 2011 price, plus damages.
In a ruling, Justice Patience Tumusiime Rubagumya ordered National Housing to refund the couple Shs 60 million in damages and other costs after finding the company breached the contract.
However, the couple will not receive the apartment or an alternative at the original price as they had prayed, marking a bittersweet outcome after a 14-year saga.
