Court Awards Kampala Traders Shs 1.26 Billion Over New Taxi Park Dispute

Justice Stephen Mubiru of the Commercial Division has ruled that the New Park Lockup Owners Association failed to uphold binding resolutions made to its pioneer members. The dispute arose when the association was formed to collectively redevelop land for the New Taxi Park, as directed by the Kampala Capital City Authority (KCCA).

Court documents revealed that traders, including Hussein Kakooza and Sarah Nabuuma Kakooza, contributed funds towards a new commercial complex. A 2010 resolution promised pioneer members ground-floor lock-up shops upon full payment. Despite paying Shs 88.5 million each, the traders were later allocated smaller units on upper floors or were excluded entirely.

The association contended that allocation followed a “first pay, first allocate” system. However, Justice Mubiru emphasized that resolutions passed at general meetings are legally binding on the association and its leadership. He noted that the association had also waived strict enforcement of deadlines by accepting late payments.

The judge further highlighted the fiduciary duties owed by the association’s leaders to members who contributed in good faith, expecting specific shop allocations. He determined that the property was held in trust for these qualifying members.

While fraud allegations were dismissed due to insufficient evidence, the court found the association liable for breach of contract and fiduciary duty. As a result, Sarah Nabuuma Kakooza was awarded Shop No. 763 and its title, along with Shs 283.5 million in damages for lost rent. Hussein Kakooza received Shs 957.55 million in damages because ground-floor units were no longer available, plus Shs 15 million in general damages. Both applicants were also awarded interest and legal costs.

This case has been ongoing since 2017.