President Yoweri Museveni has directed the government to pay businessman Matthew Rukikaire 45 percent of compensation for two ranches belonging to Incafex (U) Limited, a company at the centre of a longstanding ownership dispute involving the late businessman Musinguzi Garuga.
In a letter seen by Eagle Online dated, September 16, 2026 addressed to Attorney General Sam Mayanja and Lands Minister Judith Nabakooba, Museveni instructed the government to begin the process of paying Rukikaire directly for his claimed 45 per cent shareholding in compensation for Ranch No. 9 in Singo and Ranch No. 41 in Masaka, with the balance deposited in court pending completion of a special audit.
The directive follows an appeal by Rukikaire, who has been fighting for recognition of his interests in Incafex since 2004. The company was associated with Garuga, whose death in August 2025 triggered further disputes over its ownership, management and control.
In his letter, Museveni said Rukikaire had complained that despite winning a Supreme Court case in 2017, Incafex had failed to undertake the special audit ordered by court and was allegedly selling its properties, potentially leaving nothing for him and other investors.
“He states that in 2017, he won a dispute against the Company where the Supreme Court confirmed him as a 45% shareholder in the company. That the court also ordered for a special audit on the shares,” Museveni wrote.
The President said the company had been left with only the two ranches, which were due for government compensation, and questioned why Rukikaire should continue waiting for money arising from a matter already determined by court.
“This is a logical request. Why should the old man and the investors he represents suffer this long yet the matter was determined by court? Let Government start the process to directly pay Rukikaire compensation for the two ranches equivalent to the value of his 45% shareholding. The balance can be deposited with court,” Museveni directed.
He also instructed that he be given a progress report within two months.
However, the proposed payment comes amid a complicated legal battle over Incafex’s shareholding, assets and the implementation of court orders.
Rukikaire first filed Companies Cause No. 3 of 2004 against Incafex, accusing the company’s directors of excluding him from its affairs and oppressing him as a shareholder. The company disputed his claims, arguing that he had not paid for the shares allocated to him and that they were held in trust for Multiple Hauliers (East Africa) Limited.
The High Court initially ruled in Rukikaire’s favour in 2008, but the Court of Appeal overturned the decision. He subsequently appealed to the Supreme Court, which in October 2017 recognised him as a member and shareholder of Incafex and reinstated the order for a special audit.
The Supreme Court’s decision did not, however, dispense with the audit. The exercise was intended to establish the company’s financial position and facilitate further orders by the High Court.
In November 2023, the Supreme Court issued additional orders restraining Incafex and its directors from disposing of specified company properties pending completion of the audit and determination of consequential matters by the High Court.
The matter returned to the Commercial Court in January 2026, when Justice Dr Ginamia Melody Ngwatu ordered the immediate resumption of the special audit and directed that the final report be submitted within 60 days.
The company had opposed the application, arguing that Rukikaire had frustrated the audit by failing to provide necessary documents, among other objections. The judge rejected the objections and ordered the process to proceed.
Meanwhile, the dispute has extended to the management of companies linked to Garuga, including Garuga Properties Limited and Kinkizi Development Company Limited. Proceedings before the Uganda Registration Services Bureau have involved contested appointments of directors and company resolutions.
The latest presidential directive therefore raises questions about how the proposed compensation will be handled alongside the outstanding audit and court proceedings, particularly whether the financial entitlement of each shareholder has been established.
Although the Supreme Court recognised Rukikaire’s 45 per cent shareholding, the special audit remains central to determining the company’s financial position and the consequential orders required to resolve the dispute.
Museveni’s letter directs the government to commence payment to Rukikaire while protecting the balance through a court deposit. It does not, however, disclose the total compensation payable for the two ranches or the actual amount Rukikaire would receive.
The Attorney General, Lands Ministry and other government authorities will now have to navigate the presidential directive alongside the existing judicial orders.
