The Muwema & Co. Advocates has been evicted from commercial premises in Kololo after failing to pay USD 372,300 (about Shs 1.34 billion) in accumulated rent arrears and mesne profits.
The eviction was carried out with the assistance of the Uganda Police Force, and the premises have since been secured by a private security company.
The eviction follows a ruling delivered on February 20 by the High Court of Uganda Commercial Division, which ordered the law firm to pay the outstanding amount and vacate the property after losing a long-running tenancy dispute with Downtown Investments Ltd.
In the decision, Patricia Mutesi held that the law firm had remained in occupation of the property without legal justification and had breached the terms of its lease agreement. The judge also dismissed claims that the firm had entered into a binding sale agreement with the landlord or was entitled to reimbursement for renovations carried out on the property.
The dispute centres on property located at Plot 50 Windsor Crescent Road. According to court records, the premises were leased to the defendants under a tenancy agreement signed on December 1, 2014. The contract provided for monthly rent of USD 5,000 plus VAT, with a 10 percent increment after the first two years.
Downtown Investments Ltd turned to court after alleging that the tenants had defaulted on rent payments and continued occupying the premises beyond the agreed lease period. The company sought orders for vacant possession of the property, recovery of outstanding rent and mesne profits, as well as damages.
In their defense, the tenants argued that they had exercised an option to purchase the property in August 2021 and accused the landlord of failing to complete the sale process.
However, Justice Mutesi ruled that no enforceable sale agreement had been formed. She noted that the option to purchase contained in Clause 5 of the lease was conditional and subject to strict timelines, which the defendants failed to meet.
The court emphasized that under contract law, acceptance of an offer must be expressly communicated, and silence cannot be interpreted as consent.
The judge concluded that the relationship between the parties remained strictly that of landlord and tenant, not vendor and purchaser.
As a result, the court awarded USD 372,300 in rent arrears and mesne profits, along with Shs 50 million in general damages, and ordered the law firm to immediately hand over vacant possession of the Kololo property.
A counterclaim seeking more than USD 186,000 for renovation costs was dismissed after the court found that the lease required written authorization for structural alterations, which the defendants failed to provide.
Legal observers say the ruling reinforces the strict enforcement of commercial tenancy agreements, sending a clear signal that courts will uphold lease terms where tenants default on rent or rely on unfinalized purchase arrangements.
