This investigative website has landed on a commercial suit filed by Yako bank against a family at the Commercial Division of the High Court seeking orders to recover Shs759m from a client who paid Shs56m out of the Shs60m loan they gave him.
According to Court documents, Yako bank entered into a loan agreement with Ephantus Gichohi Ngari who applied for a loan of Shs60m which was given to him upon presenting his family members Anne Wangui Gichohi, Moses Kamunya Gichohi and his company Hillcrest dailies limited as guarantees.
He also presented his land title comprised in Block 101 Plot 729 at Mengo Kyadondo as security and he was supposed to pay a monthly interest of 10% from the date of signing the agreement for a period of six months until the entire payments were completed.
Court documents indicate that by the time of the expiration of the six months, Ngari was paid Shs56m but in 2022, the bank advertised his land which he used as security and it was sold to a one Hassan Habibu Lubega in 2025 at Shs15m.
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After selling his property, the bank claimed that it was demanding him Shs759m which they wanted to be paid by Ngari himself and his guarantors insisted that they don’t have any defence since they had communicated to them on defaulting the bank’s money but they kept turning a deaf ear.
Commercial law giants Derrick Bazekuketta and Abubaker Ssekanjako of Olympia Advocates confirmed to this website that they have received instructions to represent the respondents in the said controversial suit.
” An individual borrowed Shs60m. The bank says that he only paid back Shs56m. It also admits recovering an additional Shs15m from selling his land. Shamelessly, it has filed a case for Shs759,432,500m, which is approximately 14 times the loan amount of Shs60m,” Bazekuketta said.
He added that according to documents filed by the bank’s lawyers and supported by the affidavit of Rajanish Jain, a former bank manager, it shows that the loan accumulated interest at 120% per annum since 2015. 11 years later, interest has accumulated at 1200%
It should be remembered that on May 12th 2023, Yako bank manager a one Uttam Bhandari of Indian origin was shot and killed inside the bank building at Raja Chambers on Parliamentary Avenue in Kampala.
Ivan Wabwire a policeman who was reportedly a customer servicing a loan at the bank killed the manager after a misunderstanding regarding a loan which he was paying.
After the death of city tycoon Ibrahim Muwanga Kibirige (BMK), the said bank was also at the centre of fighting for his estate and selling his apartments in Buziga a Kampala suburb claiming that they were staked as collateral by Haruna Kalule Muwanga, a son of the late businessman.
The family challenged the auctioning citing fraud and a number of legislators have been complaining against the said financial institution on grounds of fraudulent loan payment calculations.
