In a case filed at the Commercial Division of the High Court, Namulondo Investments, the lawful agent of the Kabaka of Buganda mandated to manage, let and supervise property and buildings belonging to the Kabaka, accuses Uganda Christian University (UCU) of breaching tenancy.
According to the summons, UCU is expected to defend itself within 15 days on accusations of breach of its tenancy agreement worth over Shs254.3 million with the Kabaka of Buganda for premises that house the university’s Kampala campus.
More details indicate that Namulondo Investments will proceed with the case and a judgement might be entered if UCU fails to defend itself within the mentioned period.
It is said that UCU abruptly notified Namulondo Investments that it would not renew the tenancy beyond December 31 yet their recent five-year tenancy agreement expired on June30, 2020. Namulondo Investments blames UCU for failing to honour its tenancy for the 2021/22 financial year.
Through Kiddu and Partners Advocates, Namulondo Investments informed court that on July 9, 2015,the Kabaka and UCU executed a tenancy agreement for the premises situated in Kibuga Block 12 plot 893 land at Mengo for two years from July 1, 2015 to June 30, 2017.
The tenancy was later extended from two to five years and expired on June 30, 2020.
UCU expressed willingness to renew the agreement but the extension was never executed. The university continued to occupy the premises and paid rent for the 2021/22 financial year on terms of the expired tenancy.
On May 18, 2021, UCU penned a letter to Namulondo Investments in which it explained the challenges in meeting rent obligations. In the same letter, the university noted that it had paid six months ahead to December 2021.
According to Namulondo Investments, the company replied to UCU requesting for a meeting to discuss and resolve all pending tenancy issues but was shocked to receive another letter on June 1 in which UCU communicated that it would not renew the tenancy beyond December 31.
The Kingdom is expected to prove that UCU’s decision not to renew the tenancy was wrongly planned since the substituting tenancy between the 2021/22 financial year will expire next year on June 30.
