Diamond Trust Bank (DTB) has moved to sell two properties in Soroti linked to businessman and politician Capt Mike Mukula after companies associated with him defaulted on banking facilities now estimated at Shs3.42 billion.
The properties, registered in the name of Teso Industries Limited, a company principally owned by Mukula, were pledged as security for loans extended to businesses associated with him, including Healingway Diagnostic and Fertility Centre, Red Shield and Arrow Security Systems.
In a notice of sale seen by Eagle Online, K&K Advocates said it had been instructed by DTB to commence enforcement of the bank’s security after the borrowers defaulted on the facilities.
The law firm gave Mukula and the affected companies 30 days to settle the outstanding debt, failure of which the secured properties will be sold to recover the money owed to the bank.
The enforcement action follows a restructuring of approximately Shs1.9 billion in principal debt in May 2025. The debt was placed under a 48 month repayment arrangement carrying an annual interest rate of 20 percent.
However, the amount arising from the restructured facilities has since risen to approximately Shs3.42 billion, according to the sale notice, with DTB now seeking to recover the outstanding amount through the mortgaged properties.
One of the properties targeted for sale is a storeyed commercial building on Jumabhai Road in Soroti City, occupying approximately 0.047 hectares. The building houses offices of the National Social Security Fund (NSSF).
The second property is a largely undeveloped piece of land at Cambi Jaluwo in Soroti District measuring approximately 12.754 hectares.
Both properties are registered in the name of Teso Industries Limited and were used as collateral to secure financing from DTB.
Company filings indicate that the relationship between Teso Industries and DTB dates back several years, with the company repeatedly using its property portfolio to secure banking facilities extended to businesses associated with it.
Records show that Teso Industries created a legal mortgage in favour of DTB as far back as 2021, with subsequent filings showing additional mortgages and charges over its Soroti properties.
Among the securities registered in 2023 were mortgages over property in Soroti Block 4 at Acomai, Jajwani, including facilities denominated in both United States dollars and Uganda shillings.
Other filings show that property on Jumabhai Road in Soroti Municipality Block 3 was also pledged as collateral, with legal mortgages registered in favour of DTB.
The filings show secured amounts running into millions of dollars and billions of shillings. However, the figures stated in individual mortgage and charge documents do not necessarily represent separate loans or the amount currently outstanding because several securities may secure the same or overlapping banking facilities.
The restructuring in May 2025 subsequently consolidated the relevant financing arrangements, with approximately Shs1.9 billion in principal placed on a 48 month repayment plan.
The debt has since accumulated to about Shs3.42 billion, prompting DTB to begin enforcement of the securities.
The move puts at risk some of the prominent commercial assets associated with Mukula, who has built a business empire spanning aviation, security, real estate and healthcare through the Mukula Group of Companies.
Mukula, popularly known as Capt Mike Mukula, is also a veteran politician. He served as Member of Parliament for Soroti Municipality from 1996 to 2006 and previously served as vice chairman of the National Resistance Movement (NRM) for Eastern Uganda.
The enforcement is being handled by K&K Advocates, a law firm founded by Kiryowa Kiwanuka and Edwin Karugire. Kiwanuka is Uganda’s Minister of Defence and Veteran Affairs, while Karugire is President Yoweri Museveni’s son-in-law.
The 30-day notice gives Mukula and the affected companies an opportunity to clear the outstanding obligations before DTB proceeds with the sale of the secured properties.
However, if the debt remains unpaid after the notice period, the properties will be subjected to sale as the bank seeks to recover the outstanding Shs3.42 billion.
