Centenary Bank, one of the leading financial institution in Uganda is on spot for alleged illegal sale of a matrimonial home, purportedly to recover a loan.
Family members say that the bank through its Wakiso branch has secretly sold off their house in Kitende on Entebbe Road, Wakiso District purporting to recover loan money extended to their customer Robert Peter Mugerwa without the consent of his wife.
It is alleged that in April 2024, the Bank through its Wakiso branch offered a Shs70m loan to businessman Mugerwa who offered the family home in Kajjansi Town Council as security.
According to the Land Amendment Act of 2004, prior written consent is mandatory for any transaction involving family land, including selling, mortgaging or transferring. Transactions without spousal consent are null and void, according to the law that aims to protect women security and or occupancy.
Information reaching this publication shows that the bank secretly sold the house to Brig Gen. Rwakanara Bagonza Wilson, who is the deputy Commander of the UPDF Armoured Division in Masaka.
Maureen Nayiga, the wife of Mugerwa said in an interview that he was not aware of the transaction involving their 15-year-old family home only to learn it through an advertisement for sale.
“When I learnt about it, I went to the bank and negotiated and they gave me two options. They told me to sell the house myself and pay or look for their money,” said Nayiga.
To her surprise, Nayiga said that she was told by a person claiming to be working for the bank to vacate her home in just two days before the expiry of the loan in April this year, 2026.
“I appeal for justice for myself and the children. I have five children and I have been here for a long time and when I learned from the bank that they are purporting to give me compensation on the property transaction they did not involve me,” said Nayiga appealing to President Museveni and the Catholic Church to prevail over the bank officials.
According to Nayiga, the matter was reported to authorities including Bank of Uganda, the Police and the Resident District Commissioner who have since promised to intervene in the matter.
A family member who declined to be named said that their family house sale was done without following the due process of the law including carrying out valuation, re-advertisement and selling before the expiry of the loan period.
“How can you sell a house worth more than Shs300 million at Shs143m? It is malicious on the side to now start asking our mother to sign for them after selling to regularize their theft,” he said.
When contacted, Centenary Bank’s Corporate Communications and Marketing General Manager, Beatrice Lugalambi confirmed the case.
She said that the bank is currently in talks with their clients and the lawyers and the ongoing discussions are positive and promising.
“Where we are, we are engaging the wife, the client and their lawyers and the discussions are ongoing. But I request you to give us time to complete the process,” said another officer who called on behalf of Lugalambi.
