Finance Ministry disowns Ndere Centre bailout as auction deadline looms

The Ministry of Finance, Planning and Economic Development has distanced itself from claims that it committed to bail out the Ndere Cultural Centre, whose mounting debt threatens its survival. This comes despite a 2024 communication from the Uganda Development Bank (UDBL) citing government’s intention to intervene.

Ndere Cultural Centre, founded in 1984 as a performance club known as the Ndere Troupe, has grown into one of Uganda’s leading cultural tourism and conservation institutions. It has since expanded its footprint with cultural and hospitality ventures in various parts of the country.

In 2019, Ndere secured a loan of UGX 6.8 billion from UDBL at an annual interest rate of 10 percent to finance its expansion. However, the loan was disbursed in mid-2020—months into the COVID-19 lockdown—which severely disrupted the tourism and entertainment sectors. Despite this, projects such as the Obuntu Cuddle Resort in Bbira and Obuntu Tourist Lodge near Lake Mutanda in Kisoro went ahead, according to campaign leader Martin Ssempa.

Ndere has since struggled to service the loan, with repayments reportedly rising from UGX 22 million to UGX 30 million monthly due to compounding interest. UDBL says the loan has now ballooned to UGX 10.5 billion.

In August 2024, UDBL issued a notice of auctioning Ndere’s assets. This prompted founder and executive director Stephen Rwangyezi to appeal to the government for help. President Yoweri Museveni responded by instructing the Finance Ministry to explore a possible rescue plan.

Reports later indicated that a high-level meeting convened at the Office of the Prime Minister resulted in a commitment to support Ndere by December 2024. On September 25, Ndere Centre publicly celebrated “good news” via its social media platforms, announcing that the government had agreed to purchase shares in the Centre to offset the debt.

However, nine months later, UDBL has once again moved to auction the Centre’s assets, saying no repayment plan has been agreed upon and no funds have been received. In a recent letter, the bank noted: “Despite the September 2024 commitment, the facility remains non-performing, with no concrete timelines communicated by the Ministry regarding the expected date of settlement.” UDBL has now given Ndere seven calendar days to submit a clear repayment proposal or face asset recovery proceedings.

The Ministry of Finance has denied ever making a formal commitment to bail out Ndere. Attempts to reach Rwangyezi for comment were unsuccessful. Ssempa, who has led public fundraising efforts and lobbying campaigns to save the Centre, was unreachable as his phone line remained busy.

The Ndere Cultural Centre, located in Kigoowa, Nakawa Division in Kampala, is among several properties now listed for auction. The situation has triggered public concern over the government’s cultural priorities and its support for institutions that preserve Uganda’s heritage.

Critics argue that while government agencies publicly praised Ndere’s role in cultural promotion, there has been no coordinated effort to avert its collapse. Others have questioned whether initial bailout promises were mere political gestures.

As the July 7 deadline approaches, the fate of Ndere—once a beacon of Uganda’s performing arts and cultural diplomacy—now hangs in the balance.