Overview:
Emin Pasha Ltd and Prism Construction Co receive a court reprieve in a debt dispute with Equity Bank, as Justice Ocaya Thomas cites government payment delays as a factor.
KAMPALA, Uganda — The High Court has granted Emin Pasha Ltd. and Prism Construction Co. a final 90-day extension to complete a security deposit, preventing Equity Bank Uganda Limited from selling mortgaged properties in Nakasero and Kisugu.
In a ruling delivered Dec. 19, Justice Ocaya Thomas said the court possesses the power to modify timelines in a consent order to avoid a manifestly harsh effect when circumstances change.
The judge noted the companies have already paid $2.3 million of the required $2.73 million deposit, representing approximately 84% of the total needed to maintain an injunction against the bank.
This court has power to modify a consent, albeit that such power is used very, very sparingly, and unless the interests of justice manifestly demand otherwise, Ocaya said.
The legal dispute centers on Equity Bank’s efforts to recover more than $8 million in outstanding loans secured by prime Kampala properties. Under an October consent order, the companies were required to pay the deposit in three installments. While they met the first two deadlines, they missed the final $430,000 payment due in late November.
The applicants told the court the delay was caused by the Ugandan government’s failure to release funds owed to Prism Construction. The government confirmed it owes the firm 1.277 billion shillings but stated the funds would not be available until the first quarter of the 2026/2027 financial year.
Justice Ocaya accepted that the payment schedule was based on a mutual mistake regarding the timing of the government disbursement.
Equity Bank opposed the extension, arguing that a consent order functions as a contract and that further delays were unfair to the lender.
To balance the interests of the bank and the developers, the court imposed strict conditions on the extension. The companies must pay an outstanding $78,000 within 30 days regardless of government funding. Additionally, they must file management accounts every 30 days for court review.
The judge ruled that if the companies fail to meet these new conditions, the injunction will lapse immediately, allowing Equity Bank to proceed with the sale of the properties.
The court has scheduled a follow-up hearing for Jan. 19, 2026, to assess progress toward the payment.