Ugandan Multimillionaire Patrick Bitature Gets Temporary Relief In 10 Million Loan Fight

Ugandas Supreme Court has issued an interim order halting enforcement of a Court of Appeal decision that cleared the way for collection of a 10 million debt from businessman Patrick Bitature and several of his companies. The stay gives the parties time to pursue further arguments in the appeal. Justice Elizabeth Musoke said the order was necessary to preserve the status quo and prevent irreparable harm while the Supreme Court considers the full application. The move suspends the appellate ruling tied to Civil Application No. 305 of 2025. How the dispute began The case stems from a 2014 mezzanine loan when South Africas Vantage Mezzanine Fund II advanced 10 million to Simba Properties Investment Co., part of Bitatures Simba Group. Vantage later claimed the loan had not been repaid as agreed and brought the matter before an ICC arbitration panel. Ugandas High Court in 2023 ordered that mortgaged properties and company shares remain unchanged while enforcement was pending. The Court of Appeal in August this year struck out Bitatures challenge, ruling that the countrys arbitration law did not allow such an appeal. That decision opened the door for Vantage to proceed with collection until the Supreme Court stepped in. A pause, not an end The Supreme Courts stay does not settle the underlying dispute. Instead, it freezes enforcement while the justices review whether the appeal can proceed. The appellate ruling had boosted lenders confidence that foreign arbitration awards could be enforced in Uganda, a position that some local business leaders argue leaves domestic companies exposed. The Supreme Courts action reintroduces uncertainty and gives Bitature a reprieve at least for now. Bitatures profile and whats at stake Patrick Bitature, 65, is among Ugandas most prominent businessmen. He founded Simba Group in 1998, beginning with Simba Telecom as an MTN Uganda franchisee. Over the years, the group expanded into property, hotels, energy, mining and agribusiness. It includes holdings such as the Protea-branded hotels in Kampala and stakes in power ventures. Bitature also chairs Umeme, Ugandas main electricity distributor. Legal pressure has intensified in recent years, with the Vantage loan dispute becoming his biggest challenge. Over the years, judges have had to sort through disputes over alleged loan defaults, court orders enforcing payment, and questions about what could be appealed. As the case dragged on, the prospect of forced asset sales hung over Bitatures companies. The Supreme Courts move has bought him a pause. The eventual decision will be pivotal: an adverse outcome could trigger disposals of key holdings and further dent his standing, while a victory would show the judiciary is willing to curb the reach of foreign arbitration awards against local firms. For creditors and investors across East Africa, the case is closely watched as a test of how Uganda balances the rights of lenders with due-process protections for local borrowers.