Business 17 June 2026 Daily Monitor (Uganda)
Court Awards Shs1.25 Billion to Traders in New Taxi Park Shop Dispute
The High Court has awarded over Shs1.25 billion in damages to two traders who were unfairly denied ground-floor shops at the redeveloped New Taxi Park, despite fulfilling their financial obligations. Source: https://www.monitor.co.ug/uganda/news/national/court-awards-new-taxi-park-traders-over-shs1-25b-in-shop-allocation-dispute-5499546
Traders at the New Taxi Park have reason to celebrate after a significant court victory. The High Court Commercial Division has ruled in favor of two pioneer members, Kakooza Hussein and Sarah Nabuuma Kakooza, awarding them a combined total of more than Shs1.25 billion in damages and compensation.
The dispute centered on the allocation of lockup shops following the redevelopment of the New Taxi Park. The plaintiffs had argued that they were promised ground-floor shops as ‘pioneer members’ if they contributed to the redevelopment costs. However, despite making their payments, they were allegedly denied these promised locations, with some shops reportedly sold to individuals who were not original members.
Justice Stephen Mubiru presided over the case, finding that the New Park Lockup Owners Association and its officials had breached their contractual agreements and fiduciary duties. The court noted that the association had continued to accept payments from members even after initial deadlines had passed, implicitly waiving strict adherence to those timelines. This created a legitimate expectation among pioneer members for the promised ground-floor spaces.
While the court dismissed claims of fraud against the association officials, it found clear evidence of a breach of duty. Sarah Nabuuma Kakooza was awarded her shop, No. 763, along with Shs283.5 million in general damages for lost rental income. For Kakooza Hussein, whose allocated ground-floor units were already sold by the time he completed his payments, the court awarded Shs957.5 million in damages in lieu of specific performance, plus an additional Shs15 million in general damages.
The judgment also stipulated that all awarded damages will accrue interest at 8% per annum from the date of judgment until full payment, and the plaintiffs were awarded the costs of the suit. This landmark ruling underscores the importance of upholding agreements and fiduciary responsibilities in business dealings.