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Arrest Revives Kato Shs1bn Fraud Case

April 3, 2026
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Arrest Revives Kato Shs1bn Fraud Case

The arrest of a fugitive suspect has injected fresh momentum into a high-profile fraud case involving Kampala lawyer Absolom Kato.

Tumwebaze Gilbert Bafanabyo, a businessman based in Mityana, was arrested on April 1, 2026, in a joint operation by the Police Crime Intelligence Unit and the State House Anti-Corruption Unit. He had reportedly evaded arrest for three years.

Investigators say Tumwebaze is a central figure in an alleged fraud scheme that saw a Qatar-based investor lose $286,000 (about Shs1 billion).

He is currently being held as authorities await guidance from the Office of the Director of Public Prosecutions (DPP) on possible charges.

The case dates back to June 2024 when Mr Kato, trading as KAAB Advocates, was arraigned before the Anti-Corruption Division of the High Court in Kampala. He faces charges of money laundering and electronic fraud.

Prosecution alleges that Mr Kato and others still at large orchestrated a scheme targeting foreign investors. In earlier proceedings, the complainant,

Mr Souhail Imtiaz Khan of Qatar-based Ascend Group, told court that several individuals were involved.
Police have since named Mr Stephen Ssekigozi, Mr Kenneth Ssengendo, Mr Peter Kimuli, and Mr Dennis Mpanga as suspects who remain on the run.

According to investigators, the group allegedly invoked the names and offices of senior government officials to lend credibility to their dealings. These include the Office of the Special Envoy to the President, the Office of former Vice President Edward Ssekandi, and Parliament premises.

Mr Ssekigozi has also been previously linked to a separate fraud case reported in May 2024, where he and accomplices allegedly posed as members of a presidential task force and defrauded another investor of more than $573,000 (about Shs2 billion). No prosecution has been finalised in that matter.

The latest arrest is viewed as a breakthrough in a case that has drawn scrutiny over the abuse of government institutions and delays in apprehending key suspects.

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