Centenary Bank, one of Uganda’s leading financial institutions, is under scrutiny over the alleged illegal sale of a matrimonial home in Wakiso District, reportedly to recover a loan.
Family members claim that the bank, through its Wakiso branch, secretly sold their house in Kitende along Entebbe Road to recover money lent to businessman Robert Peter Mugerwa—without the consent of his wife.
It is alleged that in April 2024, the bank extended a Shs70 million loan to Mugerwa, who used the family home in Kajjansi Town Council as collateral.
However, under Uganda’s Land Amendment Act, prior written consent from a spouse is mandatory for any transaction involving family land, including sale, mortgage, or transfer. Transactions conducted without such consent are considered null and void, as the law seeks to protect spousal security and occupancy rights.
Reports indicate that the property was later sold to Rwakanara Bagonza Wilson, the deputy commander of the UPDF Armoured Division in Masaka.
Maureen Nayiga said in an interview that she was unaware of the transaction involving their 15-year-old family home until she came across an advertisement for its sale.
“When I learnt about it, I went to the bank and negotiated. They gave me two options: to sell the house myself and pay them, or to look for their money,” Nayiga said.
She added that she was later instructed by an individual claiming to represent the bank to vacate the property within two days—before the loan’s expiry in April 2026.
“I appeal for justice for myself and my children. I have five children and have lived here for many years. I was shocked to learn the bank was offering compensation for a transaction they did not involve me in,” she said, appealing to Yoweri Museveni and the Catholic Church to intervene.
Nayiga said the matter has been reported to authorities, including the Bank of Uganda, the police, and the Resident District Commissioner, who have pledged to investigate.
A family member, who spoke on condition of anonymity, alleged that the sale did not follow due legal procedures, including property valuation, re-advertisement, and adherence to the loan timeline.
“How can a house worth more than Shs300 million be sold at Shs143 million? It is malicious to now ask our mother to sign documents after the sale to regularise their actions,” the relative said.
When contacted, Centenary Bank’s Corporate Communications and Marketing General Manager, Beatrice Lugalambi, confirmed the matter.
She said the bank is currently engaging with the client, his wife, and their lawyers, expressing optimism about the ongoing discussions.
“Where we are now, we are engaging the wife, the client, and their lawyers. The discussions are ongoing, and we request time to complete the process,” said an officer speaking on her behalf.
