news 13 October 2026 Daily Monitor (Uganda)
Pharmaceutical Firm Mavid Faces Collapse Over Locked Shs300 Million Court Deposit
Mavid Pharmaceuticals is on the brink of collapse as over Shs300 million, deposited in court as security for costs, remains inaccessible nearly a year after a settlement was reached. The delay by the Judiciary is hindering the firm's operations. Source: https://www.monitor.co.ug/uganda/news/national/pharmaceutical-firm-faces-collapse-as-shs300m-court-deposit-remains-locked-5630630
Mavid Pharmaceuticals, a Ugandan firm, is facing severe financial distress and potential collapse due to the prolonged delay in accessing court funds amounting to approximately Shs300 million. The money, comprising $62,819 and Shs50 million, was deposited as security for costs in a protracted commercial dispute.
Justice Geoffrey Kiryabwire, who mediated one of the appeals, issued a directive on December 3, 2025, instructing the Chief Registrar to facilitate the release of these funds following a formal settlement between the parties. However, nearly a year later, the funds remain locked within the court system, paralyzing Mavid’s operations.
According to Mr. Bukenya, a representative for Mavid, while the other party, Pakistan-based Royal Group, has settled its direct portion of the payment, the remaining balance, crucial for Mavid’s financial stability, is still trapped. This situation has significantly impacted Mavid’s ability to conduct business and fulfill its obligations.
The legal battle originated in 2009 when Mavid challenged the National Drug Authority’s (NDA) decision to revoke its agency status for Royal Group, a company it had represented since 1997. The ongoing dispute and the subsequent immobilization of its funds have placed Mavid Pharmaceuticals in a precarious position, threatening its very survival.