Budget 2025: Gov’t gives UMSC Shs 14bn for Kyabahwa debt
By Jafar Mugera
Uganda Muslim Supreme Council (UMSC) has been allocated Shs 14 billion in the national budget to settle a longstanding dispute between the Old Kampala-based Muslim leadership and businessman, Justus Kyabahwa. Iin November 2023, Kyabahwa attempted to auction the Gaddafi National Mosque and nine other Muslim properties to recover a debt.
The funds are a part of the Shs 72.3 trillion budget for the 2025/2026 financial year, passed by Parliament on May 15 and placed under the Ministry of Gender, Labour and Social Development.
However, the allocation faced opposition from MPs through a minority report presented by Kira Municipality MP, also shadow minister for Finance, Ibrahim Ssemujju Nganda, who argued that; “Sheikh Mubaje sold UMSC farmland in Sembabule to two different buyers. One obtained a court order to attach UMSC property including the national mosque. Now, Museveni has ordered that taxpayers’ money be allocated to Mubaje to help him repay the money he ate,” Ssemujju said.
The allocation was introduced to Parliament via a budget corrigendum, following it inclusion in the second budget call circular issued by the Ministry of Finance, Planning and Economic Development on February 13, 2025.
BACKGROUND
In November 2023, Kyabahwa secured a court ruling allowing him to attach Gaddafi National Mosque at Old Kampala hill to recover a Shs 19 billion debt from UMSC. This followed a land sale agreement that the Muslim body entered into with the businessman on June 24, 2020 when Kyabahwa through his agent, Arthur Kayanja, bought a 517-hectare ranch in Sembabule from UMSC. The land was sold for Shs 3.584 billion.
Under the agreement, UMSC was required to hand over the ranch to its new owner within 60 days after clearing any outstanding disputes and levies. The agreement also stated that UMSC was in a period of 60 days, supposed to remove the caveat filed on the title to the land by Enterprise Handling Services Limited (ENHAS), the company that had a 15-year lease that was running up to 2028. Failure to achieve this, UMSC, the agreement further stipulated, would refund the full payment with a monthly interest of 12 per cent.
The Commercial Court on August 7, 2023, decided the dispute in Kyabahwa’s favour, and awarded him Shs 18.9 billion as accumulated interest for nearly four years.
UMSC unsuccessfully appealed in the Court of Appeal. A separate application for a stay of execution also failed forcing the High Court in Kampala to issue a warrant of execution on November 16, 2023.
The developments caused an uproar within the Muslim community, and eventually a split at Old Kampala as some members of the UMSC general assembly moved to impeach the Mufti, Sheikh Shaban Ramath Mubaje, and appointed one of his hitherto deputies, Sheikh Abdallah Ssemambo Ssekimpi, as acting Mufti.
As the bickering continued, President Yoweri Museveni stepped in on December 7, 2023, and asked the Chief Justice, Alfonse Owiny-Dollo, to review the court decision that allowed the sale of Gaddafi Mosque. This followed a November 29, 2023, letter, Mubaje wrote to Museveni seeking his intervention.
A week later, the Court of Appeal halted the auctioning of the Muslim properties on grounds that the initial attachment orders were marred by irregularity and malice.
