Overview:
The decision marks a departure from an earlier proposal under which the Fund would have accepted 10 acres of alternative land from Mr Nzeyi, while allowing him to purchase the remaining 45 acres at the prevailing market value.
KAMPALA: The National Social Security Fund (NSSF) has abandoned a proposed land-swap arrangement with businessman Amos Nzeyi and instead moved to reclaim the entire 55 acres at the centre of their long-running Temangalo land dispute in Wakiso District.
NSSF Managing Director Patrick Ayota told Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) on Wednesday that the Fund had reached a fresh understanding with Mr Nzeyi under which he would vacate the disputed land and surrender it to NSSF.
The decision marks a departure from an earlier proposal under which the Fund would have accepted 10 acres of alternative land from Mr Nzeyi, while allowing him to purchase the remaining 45 acres at the prevailing market value.
Mr Ayota said the proposed arrangement had encountered resistance within the Fund, with stakeholders questioning why NSSF should give up land it had already purchased and secured registered title to.
He said the transaction would also have required several institutional approvals, including clearance from the NSSF Board, the responsible minister and compliance with the Public Procurement and Disposal of Public Assets (PPDA) framework.
Following further consultations, management reconsidered its position and communicated the decision to Mr Nzeyi, who agreed to surrender the entire disputed acreage.
Mr Ayota said the latest understanding was reached during a meeting held two days before his appearance before the committee, effectively ending negotiations over the proposed land swap and purchase.
The Fund now intends to recover vacant possession of the 55 acres rather than pursue another exchange of property.
COSASE demands written commitment
However, legislators questioned whether the latest understanding would translate into actual recovery of the land, given the history of failed negotiations between the two parties.
The committee, chaired by Mr Muwada Nkunyingi, welcomed the revised position but expressed concern over NSSF’s repeated changes in approach, particularly after the earlier land-swap proposal had already been presented to Parliament.
MPs said the Fund needed to provide documentary evidence of the latest agreement rather than rely on verbal assurances from the parties.
Mr Ayota committed to submitting minutes of the meeting, endorsed by both NSSF and Mr Nzeyi, as interim evidence of the understanding. He said a formal agreement would be concluded within the next two weeks.
The committee also sought clarification on whether NSSF had formally withdrawn its earlier proposal involving 10 acres of alternative land and the purchase of the remaining 45 acres.
Some legislators questioned whether the negotiations had involved the Attorney General and Solicitor General, given the legal implications of the dispute and other proceedings concerning the wider Temangalo estate.
Mr Nkunyingi said COSASE was examining the different land claims separately and would not interfere with matters pending before courts of law.
He said the committee’s immediate concern was whether NSSF could recover the 55 acres for which it already holds registered title, distinguishing the matter from separate ownership claims over the wider estate.
How the dispute started
The Temangalo dispute dates back to March 2008, when NSSF purchased approximately 463.87 acres from Mr Nzeyi and Arma Limited for about Shs11 billion.
The acquisition was intended to facilitate the Fund’s planned housing development, with the property registered under six separate certificates of title in NSSF’s name.
However, a memorandum of understanding signed alongside the sale agreement allowed Mr Nzeyi to retain approximately 104.88 acres, including his farmhouse, paddocks and other developments, on condition that he would provide NSSF with suitable alternative land within six months.
The proposed exchange was never fully completed, triggering years of disagreements, negotiations and legal proceedings.
In 2013, the parties referred the dispute to arbitration, resulting in an award upholding the arrangement for an exchange of land of equivalent value, suitable for NSSF’s intended development and free from encumbrances.
Subsequent assessments of alternative land offered by Mr Nzeyi reportedly established that only approximately 10 acres met the Fund’s requirements, leaving about 55 acres unresolved.
In June 2026, NSSF issued Mr Nzeyi an ultimatum to provide suitable alternative land by June 30, warning that failure to comply would prompt the Fund to pursue legal action to secure vacant possession.
The Fund subsequently initiated steps to enforce its property rights, leading to the latest understanding to abandon the exchange arrangement and recover the disputed acreage.
Separate ownership claim complicates estate
The dispute is also taking place against the backdrop of a separate ownership claim involving the family of the late Mohammed Hassnali Moosa, which claims approximately 366.2 acres of the wider Temangalo estate.
The family maintains that the land belonged to Temangalo Tea Estates Limited before it was allegedly transferred fraudulently. The claim has generated separate litigation involving NSSF and other parties.
However, the latest understanding between NSSF and Mr Nzeyi is limited to the recovery of the 55 acres already registered in the Fund’s name.
COSASE wants the parties to formalise the agreement and demonstrate a clear commitment to its implementation, as the committee continues examining the Fund’s handling of the disputed property.