The Commercial Court has delivered a major blow to Makerere University, ordering Uganda’s top institution to cough up Shs 343 million to Team Uniform Limited for breaching a contract linked to the supply of graduation gowns.
In a ruling by Justice Patricia Mutesi, the university was found guilty of failing to fully compensate Team Uniform for gowns supplied for its 68th, 69th, and 70th graduation ceremonies, each priced at Shs 90,000.
The legal battle stems from a 2017 agreement where Team Uniform Limited was appointed as the official gown supplier, selling directly to graduands while remitting 10% commission to the university. However, cracks emerged when Makerere accused the company of failing to deliver the required number of gowns, forcing the university to import additional ones from China—an embarrassing move that led to logistical nightmares and delayed deliveries.
On the other hand, Team Uniform claimed it was owed Shs 670 million for delivered gowns and demanded Shs 1.224 billion in damages, citing losses from Makerere’s failure to uphold exclusivity in the deal. The company also sought Shs 120 million in special damages and $3,353.15 in general damages.
Justice Mutesi’s ruling threw shade at both parties, questioning Team Uniform’s supply figures while acknowledging that Makerere still had outstanding payments.
“I am inclined to disbelieve the plaintiff’s claim and evidence that it supplied 12,379 gowns… My considered view is that the defendant could not have ordered 5,000 gowns if it only needed 1,230,” Mutesi remarked in her judgment.
After scrutinizing the evidence, the court ruled that:
Makerere owes Shs 334 million from the 69th graduation
Makerere overpaid Team Uniform Shs 20.991 million for the 70th graduation
Team Uniform is entitled to Shs 30 million in general damages for business losses
Additionally, the university must pay a 17% annual interest on the Shs 334 million dating back to 2020 until full payment is made, and a 15% interest on the Shs 30 million damages from the judgment date.
Makerere was also slapped with legal costs, making this yet another costly scandal for the institution.