The High Court (Commerical Division) has given businessman Kennedy Losuk, 60 days to deposit Shs 10 billion in Equity Bank or have his properties, including Emin Pasha Hotel in Nakasero, sold off. The 60 days end on October 10, 2025.
A couple of years ago, the owner of the hotel, Kennedy Losuk, borrowed billions from Equity Bank to undertake certain projects but defaulted on repayments.
Losuk borrowed part of this money to to refinance old debts and renovate its posh hotel on Akii Bua Road in Nakasero, while his other firm, Prism Construction took funds to clear an overdraft. Losuk provided personal guarantees.
Despite multiple repayment extensions, Losuk defaulted, leading the bank to demand full repayment and initiate foreclosure in April 2025.
In April, the bank obtained a court order to have Losuk’s properties sold unless he deposits 2.7 million (Shs 10 billion) with them within 30 days.
The total outstanding debt stood at about Shs 34 billion.
But Losuk and his companies challenged the bank’s decision and ran to court seeking to halt the sale.
He sued the bank and the Attorney General, claiming the loan amounts were inflated and consolidated without their full consent.
He said Prism Construction is owed over Shs 5.8 billion by the government for a 2020 construction contract with the Ministry of Education and Sports.
He tabled presidential directives and recent letters from government officials, including one dated July 23, 2025, promising payment.
But In her detailed 20-page ruling, Justice Patricia Mutesi dismissed most of the appeal’s grounds.
She ruled that the lower court registrar was correct to base the deposit on 30% of the properties’ forced sale value, drawn from January 2020 valuation reports. The properties include land in Kisugu and Nakasero, valued at the time to justify the Shs 10 billion figure.
“The Learned Registrar did not err in law and fact,” Mutesi wrote, emphasizing that Uganda’s Mortgage Regulations require such deposits to balance the interests of lenders and borrowers during disputes.
She rejected claims that fresher valuations were needed, noting that older reports could suffice and were actually more favorable to the borrowers since property values rise over time.
However, acknowledging the government’s repeated assurances to pay Prism Construction, including unfulfilled promises by June 2025, Mutesi extended the deposit deadline to October 10, 2025.
This gives Losuk extra time to chase the government funds and potentially avoid losing his prized assets like Emin Pasha Hotel.
