August 4, 2025 – Kampala, Uganda | The High Court’s Commercial Division has granted Dalaus Katongole, a prominent businessman trading as Ngoleda Stores, permission to defend himself in a lawsuit filed by Stanbic Bank Uganda Ltd. The bank seeks to recover a total of Shs 427 million from a Shs 544.9 million business loan disbursed to Katongole in October 2022.
Justice Patience T.E. Rubagumya ruled that Katongole raised significant legal and factual concerns that warranted a full trial. This ruling came after Katongole challenged the bank’s claims of outstanding loan balances, asserting that the loan calculations were inflated and riddled with irregularities.
The Loan and Allegations
Stanbic Bank filed Civil Suit No. 430 of 2025, accusing Katongole of defaulting on the loan, which was initially set to be repaid over 48 months. The bank also sought to foreclose the mortgaged property located in Kikusa-Mawanyi, Wakiso District. However, Katongole has countered the claims, arguing that the bank’s figures were inflated. He presented an audit from Gingo Roland & Partners, which pointed to illegal deductions, unexplained transactions, and interest overcharges amounting to Shs 2.15 billion.
In addition, Katongole questioned the validity of the mortgage agreement, claiming that the certificate of title for the land had been cancelled in an earlier High Court case. His wife also disputed having consented to the mortgage, alleging that her signature was forged.
Bank’s Response
In its defense, Stanbic Bank denied the allegations, asserting that the audit was biased and lacked professionalism. The bank emphasized its long history of providing financial services to Katongole, having extended 52 loan facilities to him since 2012. They also argued that the property is still legally registered under Katongole’s name, and that his financial obligations remain unchanged.
Court’s Ruling
Justice Rubagumya found that the issues raised by Katongole, including allegations of fraud, illegal deductions, and forged documents, could not be settled via summary judgment. These serious issues require a comprehensive examination in court, making a full trial necessary.
Katongole has been granted unconditional leave to defend himself and is required to file a written statement of defense within 15 days. The court also deferred the decision on the costs of the application until the main suit concludes.
As the case progresses, the Commercial Court will evaluate the validity of both the loan and the mortgage, while also addressing the accusations of financial misconduct and fraud leveled against Stanbic Bank.
This legal battle will set a precedent in how disputes regarding loan agreements, mortgages, and banking practices are handled in Uganda’s financial sector.https://x.com/chimpreports
