Former Simbamanyo House owner Peter Kamya is in more trouble after move evidence reveal that he kept on collecting rent from the Ministry of Gender, Labour and Social Development despite mortgaging the building to Equity Bank when acquiring a loan.

In August 2012, Equity Bank Uganda and Equity Bank Kenya extended a loan worth  $10 million to Simbamanyo to finance the construction of a hotel in Luzira and also to take over Kamya’s prior loan from Shelter Afrique. The funds came from both Equity Kenya and Uganda.

According to a document seen by The Capital Times, Kamya instructed law firm Kampala Associated Advocates to collect rental arrears from the Ministry of Gender Labour and social Development of which payment was to be made through DFCU bank.

“This is to advise that for the sake of good order, having instructed the advocates it is necessary that payment be effected through them as indicated in the letter,” part of the letter reads.

“For the avoidance of any possible doubt the account details of Messers Kampala Associated Advocates to which payments should be made are as follows; Kampala Associated Advocates Clients Account, DFCU Bank located along Jinja Road.”

Kamya continued to receive money from the rent payments but did not remit any for his loan obligations.

Equity Bank Uganda Limited began foreclosure proceedings against Simbamanyo to recover the outstanding loan.

The bank seized Simbamanyo House and Afrique Suits Hotel on Mutungo Hill in Kampala last year after the city tycoon Peter Kamya and his Simbamanyo Estates failed to clear loans to a tune of $10.8m (about Shs40 billion).

Sudhir Ruparelia acquired Simbamanyo House in October 2020 after emerging as the highest bidders with $5 million about (Shs18.5 billion) through his company Meera Investment Limited. Ruparelia has since renamed Simbamanyo House to Gender & Labour House.