The High Court has ordered Kobo360 Inc., a Nigerian logistics firm, to pay Nice Star International more than Shs 64 million after it failed to pay for transporting ten containers from Mombasa to Kampala.
The court also awarded general damages, interest, and costs to Nice Star after Kobo360 repeatedly ignored court summons and failed to file a defence.
The dispute began in August 2022, when the two companies signed a contract for Nice Star to transport goods for Kobo360.
According to court documents, the parties agreed that Nice Star would move containers from the port of Mombasa to Kampala at a cost of Shs 8 million per container.
The arrangement was formalised in a Memorandum of Understanding signed on August 17, 2022. The cost included returning empty containers to Mombasa, and the contract was valid for twelve months.
Nice Star told the court that it transported nine import containers and one export container, making a total of ten. The company expected Kobo360 to pay Shs 56 million by September 3, 2023. However, no payment was made.
Nice Star then issued several reminders, including a demand letter dated December 9, 2023, which the court identified as part of the evidence. In the letter, Nice Star asked Kobo360 to pay the outstanding amount arising from the breach of contract.
When the money was still not paid, Nice Star filed a summary suit in March 2024, asking the court to compel Kobo360 to pay the outstanding balance, interest, general damages, and costs.
The court first issued a summons on March 21, 2024, requiring Kobo360 to apply for permission to defend the case within ten days. Kobo360 responded by applying for leave to defend, and in December 2024, the High Court granted it unconditional leave.
At the same time, the court ordered Kobo360 to file a written defence within 14 days and also awarded Nice Star the unpaid Shs 56 million.
But Kobo360 never filed the defence.
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Justice Patience Rubagumya, who presided over the case, explained that although Kobo360’s lawyers had initially applied to defend the case, the company did not take the next required steps.
She noted that hearing notices were issued on April 2, 2025, and again later that year, and that affidavits of service showed Kobo360 received the notices but did not appear in court.
As a result, the case proceeded without Kobo360, and Nice Star presented one witness, its authorised representative Emmanuel Kamugabirwe. His evidence was supported by all key documents, including the transportation contract, declaration forms, and demand notices.
Kamugabirwe told the court that Kobo360’s failure to pay had caused serious financial hardship. He said Nice Star had suffered “shortages in their cash flow, difficulties in paying workers, and loss of business opportunities”.
He added that the company had struggled to pay truck owners, clearing agents, and logistics partners because it had been deprived of the money it expected.
Justice Rubagumya accepted this testimony.
“Considering the authorities cited and the fact that Kobo360 deprived Nice Star of the use of its money, which caused grave inconvenience, financial hardships, and distress, I hereby award Nice Star general damages amounting to Shs 8 million. Kobo360 was also ordered to pay Shs 56 million at an annual interest rate of 24%.
She said this was justified because Kobo360 had held the money since 2022, and the transaction was commercial in nature. She added that Nice Star had suffered financial loss and disruption to its operations due to the long delay.
On costs, the judge said the law provides that the successful party in a case should be awarded costs unless the court decides otherwise. She concluded that Nice Star had succeeded in all its claims and was therefore entitled to recover the costs of the suit.
