High Court backs Absa in Shs710m recovery case against Boss Beverage

KAMPALA — The High Court has ruled in favour of Absa Bank Uganda in a debt recovery case involving more than Shs710 million owed by Boss Beverage, allowing the bank to proceed with the sale of mortgaged property.
The court decision follows a legal challenge arising from an unpaid loan facility secured through property pledged by the beverage company. Absa Bank argued that the borrower had failed to meet repayment obligations despite receiving notices and demand reminders.
In its judgment, the court held that the bank acted within the law and observed the necessary procedures before seeking to enforce the mortgage security.
The ruling effectively removes barriers to the sale of the property, enabling the lender to recover the outstanding debt through auction or other legally recognised means.
The case comes at a time when several businesses across Uganda continue to face financial strain linked to rising operational costs, reduced cash flow and difficulties servicing loans.
Commercial sector observers say the judgment underscores the importance of compliance with loan agreements and highlights the courts’ role in protecting contractual obligations between lenders and borrowers.
No immediate response had been issued by either Boss Beverage or Absa Bank Uganda by the time of publication.