By Spy Uganda
Kampala – City law firm Muwema & Co. Advocates has broken its silence following a blistering High Court judgment ordering it to pay over USD 372,000 (Approx.Shs1.4B , UGX 50 million in general damages, interest at 13% per annum and to vacate its Kololo offices, describing the decision as legally flawed and vowing to challenge it in the Court of Appeal. 
In an exclusive Saturday night interview with Spy Uganda’s Chief Executive Officer, Andrew Irumba, the firm’s pioneer Co-Founder and partner Friday Kagoro did not mince words, openly expressing dissatisfaction with Justice Patricia Mutesi’s ruling in HCCS No. 0621 of 2023: Down Town Investments Ltd Vs M/s Muwema & Co. Advocates & 2 Others.
“No, we’re not satisfied with the ruling. The judge has a grudge on the law firm because we handled an earlier divorce case in her family in which she had an interest,” Kagoro said.
He added, “But also, look at her ruling; we paid some money from their main plaint yet in her judgment she didn’t at all talk about it but ordered us to pay full amount of the earlier claim. We shall appeal this matter.” The above remarks are extracted verbatim from the full interview, whose visual version will be aired on TheSpy Television, the broadcast arm of this mighty online paper.
Background Of The Dispute
As we reported yesterday in Spy Uganda while attaching the full judgment, the dispute stems from a 2016 five-year renewable lease agreement between Muwema & Co. Advocates and Down Town Investments Ltd for premises at Plot 50 Windsor Crescent Road, Kololo.
Under the lease, the firm was paying an initial rent of USD 5,500 per month, subject to revision. Crucially, Clause 5 of the tenancy agreement granted the firm first option to purchase the property at a floor price of USD 2 million within the first 12 months. After that period, the sale price would be determined by the market.
According to a press statement dated 21st February 2026 issued by the firm, Muwema & Co. did not exercise the option within the initial 12 months but maintained that the right to purchase remained alive, with the only variation being that the price would now be market-driven .
On 2nd August 2021, the firm says it formally exercised its option by offering USD 1,050,000 for the approximately 60-decimal property — translating to USD 17,000 per decimal, which it argues was within the prevailing market range of USD 15,000–20,000 per decimal at the time .
However, Down Town Investments reportedly rejected the offer as being below expectation and, according to the firm, declined to make a counter-offer or enter negotiations .
Instead, relations deteriorated. The landlord allegedly demanded rent, which had risen to USD 11,000 per month, and by May 2023 claimed rent arrears amounting to USD 148,300, subsequently filing suit .
The Landlord’s Claim And The Court’s Orders
Down Town Investments sued for rent arrears of USD 148,300 as at 30th May 2023, mesne profits, general damages and vacant possession .
Justice Patricia Mutesi’s judgment awarded:
• USD 148,300 in rent arrears
• USD 224,000 as mesne profits
• UGX 50,000,000 in general damages
• Interest at 13% per annum
• An order of vacant possession/eviction from Plot 50 Windsor Crescent Road
The cumulative financial exposure, excluding accruing interest, runs into billions of shillings.
Contentious Payment Of USD 130,000
Central to Muwema & Co.’s grievance is what they term as the court’s failure to factor in payments made during mediation.
In its press release, the firm states that although it disputed liability on grounds that it had exercised its option to purchase, it nonetheless paid USD 130,000 during court mediation “in the hope that they would give us our counter offer to the purchase” .
The firm now argues that the trial judge erred by awarding the full USD 148,300 while “ignoring the available evidence on the record showing a payment of USD 130,000 against that claim” .
It further faults the award of USD 224,000 as mesne profits, contending that such profits were neither specifically pleaded nor proved .
Appeal Imminent
In its formal position, the firm says it is dissatisfied with what it calls “factual and legal inconsistencies which contradict established precedent” and has resolved to challenge the judgment before a higher court .
Beyond the technical grounds, Kagoro’s explosive allegation of judicial bias adds a dramatic dimension to what is already shaping into a high-stakes commercial and reputational battle.
Whether the Court of Appeal will uphold or overturn Justice Mutesi’s decision remains to be seen. For now, Muwema & Co. insists it remains committed to “the lawful pursuit” of its claimed right to purchase the prime Kololo property.
When our Spy pressed hard on whether a tenant can force a landlord to sale his property and whether ‘willing buyer, willing seller’ policy changed, Kagoro argued that their contractual obligations they did from the onset had encompassed it. He further added that they have a document in their hands that shows the landlord wanted to sale and that the tenancy agreement bound the landlord to give the first chance to the tenant.
The full exclusive interview with Friday Kagoro will be available on TheSpy Television tomorrow. Watch the space…
