Aya Investments Uganda Limited, the developer of the Pearl of Africa Hotel, has been directed by the Commercial Division of the High Court to settle a long-standing financial obligation amounting to about Shs 1.46 billion owed to a foreign contractor that supplied key electrical and communication systems for the hotel.
The court ruling follows a case lodged in 2023 by General International Technical Co. (L.L.C), a company contracted during the construction phase of the Nakasero-based luxury hotel.
According to the documents presented before court, the supplier was responsible for delivering and installing several of the hotel’s essential mechanical and electrical components. These included:air-conditioning units,CCTV surveillance systems,fibre-optic infrastructure and wireless internet points,security and intrusion systems,fire suppression and alarm mechanisms,water treatment and cable supplies and central battery system equipment
The company also provided supervision and testing for systems such as the Building Management System (BMS), the communication backbone, and telephone jack installations.
The overall cost of the works and materials provided amounted to $1,348,819.65. Aya Investments made part-payment totaling $1,203,568.43, leaving a balance of $145,250 unpaid.
Repeated attempts by the supplier to secure the remaining funds were unsuccessful, prompting it to sue for breach of contract.
In her ruling, Justice Patience Rubagumya concluded that the evidence supplied—ranging from invoices and delivery notes to email communication and payment records—clearly demonstrated that the contractor had executed all its obligations under the agreement.
She noted that Aya’s extended failure to pay caused the supplier financial hardships and disrupted its operations.
Final Award and Accrued Interest,the court ordered Aya Investments to pay:shs 65 million in general damages,the outstanding $145,250 balance and interest at 24% per year on the unpaid amount from April 2018.
This interest raised the total to $389,270 (approximately Shs 1.46 billion). Aya was also directed to meet the legal costs of the suit.
The decision adds to the financial pressure facing the company and its proprietor, Muhammad Hamid. The Pearl of Africa Hotel, once celebrated as one of the country’s flagship hospitality projects, has in recent months been advertised for auction over separate unresolved debts.
President Yoweri Museveni previously indicated that government might consider intervening to support the hotel, although it remains unclear whether such assistance will eventually materialise.