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HomeBusinessUgandan Businessman Tom Mugenga Wins Shs 59B Compensation Case Against Kenya

Ugandan Businessman Tom Mugenga Wins Shs 59B Compensation Case Against Kenya

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Ugandan businessman Tom Mugenga has secured a landmark victory in a long-running legal battle against the Government of Kenya, following a Court of Appeal ruling that awarded him nearly $17 million (approximately Shs 59 billion) in compensation.

Mugenga, a well-known entrepreneur with interests in real estate, clearing and forwarding, and agro-processing, owns Mugenga Holdings, Voice of Muhabura FM, and previously served as a director at Crane Bank.

The case, which has dragged on for close to two decades, stemmed from the 2007–2008 post-election violence in Kenya, during which Mugenga’s logistics company suffered significant losses. He told the court that his firm lost eight trucks that were torched or looted during the unrest, forcing him to auction property in Mombasa to clear mounting debts.

In its judgment, the Kenyan Court of Appeal ordered the State to pay Mugenga Holdings a total of $16.8 million in special damages for the destroyed assets and an additional $155,000 for a property in Mombasa that was unlawfully seized.

Mugenga was among 16 Ugandan logistics firms that sued the Kenyan Attorney General and the Inspector General of Police, accusing the State of failing to protect their businesses during the violence that paralyzed transport operations across East Africa.

The companies, including Intraspeed Logistics Ltd, Dooba Enterprises Ltd, and Wilbex Uganda Ltd, were all involved in cross-border haulage of goods from Mombasa Port to Uganda, Rwanda, and the Democratic Republic of Congo. They collectively sought compensation for vehicles, cargo, and property lost in the chaos.

The court’s decision marks a significant moment for regional businesses affected by political instability and reinforces the responsibility of governments to guarantee security and protect foreign investments within their borders.

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