ABC Capital Bank: Files Mwesigwa Defamation Lawsuit in Uganda

• ABC Capital Bank has sued former Uganda Cranes captain Andy Mwesigwa for defamation over public statements regarding a loan to his Amesco High School.
• The bank alleges Mwesigwa falsely claimed it applied unlawful interest rates and conspired with "sports mafias" to seize his school, disseminating these claims via various media.
• Mwesigwa's school received a Shs480 million loan in 2020, with an effective interest rate of 23.5%, but he allegedly failed to make consistent payments, leading to a current outstanding balance of Shs1,279,587,998.68 as of May 18, 2026.
• The bank seeks damages, a public apology, a retraction, and a permanent injunction against further defamatory statements, plus 25% annual interest and legal costs.
• A related court ruling granted Mwesigwa a conditional injunction requiring him to deposit Shs392.3 million (30% of the outstanding liability) within 30 days.

This Uganda High Court defamation suit underscores the significant legal risks associated with public statements made during ongoing loan disputes and debt recovery processes, particularly for financial institutions.

ABC Capital Bank has initiated a significant legal action in the Uganda High Court, filing a defamation lawsuit against Andy Mwesigwa, a former captain of the Uganda Cranes national football team. The bank alleges that Mwesigwa made false and malicious public statements concerning a loan extended to his Amesco High School in Wakiso, thereby damaging the institution's reputation. The plaint, submitted on August 20, 2026, seeks substantial remedies, including general, punitive, and exemplary damages, alongside a public apology and retraction from Mwesigwa.

The financial institution is also requesting a permanent injunction to prevent Mwesigwa from issuing any further defamatory statements. Additionally, ABC Capital Bank is demanding interest at a rate of 25 percent per annum, calculated from the date of the suit's filing until the full payment is received, in addition to covering the costs associated with the legal proceedings. This ABC Capital Bank Mwesigwa defamation lawsuit Uganda highlights the contentious nature of public disputes arising from financial obligations.

The core of the bank's complaint centers on Mwesigwa's public appeal to President Yoweri Museveni for intervention in the loan matter. During this appeal, Mwesigwa reportedly claimed that "sports mafias" were collaborating with ABC Capital Bank to seize his school. These allegations, according to the bank, were disseminated across various media platforms, including Umoja Standard, Galaxy FM, and social media channels such as TikTok and YouTube. Mwesigwa further accused the bank of applying an unlawful monthly interest rate of 30 percent, which he contended was not part of the original loan agreement. The bank vehemently denies these assertions, maintaining that its operations have consistently adhered to legal frameworks and the terms of the loan agreement.

The legal dispute stems from a Shs480 million term loan granted to Amesco High School, owned by Andy Mwesigwa, structured on a reducing balance basis. The loan schedule was established on January 2, 2020, stipulating 16 installments with a contractual maturity date set for February 12, 2025. The agreed effective interest rate for this facility was 23.5 percent, while a contractual penal interest rate of 38.5 percent was applicable, comprising the standard 23.5 percent interest plus an additional 15 percent penalty.

According to ABC Capital Bank's records, Mwesigwa did not consistently meet his scheduled installment payments as they became due. The loan terms dictated that overdue payments would incur penal interest, and any payments received would first be applied towards applicable penalties and interest before reducing the principal amount. Despite these challenges, Mwesigwa had made payments totaling Shs338,400,611.28 towards the loan. However, the bank asserts that these payments were insufficient to fully regularize the account, leading to a continued accumulation of outstanding obligations.

On June 28, 2024, the loan account was formally written off at a balance of Shs787,369,486.68. The bank, however, clarifies that this write-off did not constitute a waiver or cancellation of Mwesigwa's obligation to repay the debt. As of May 18, 2026, ABC Capital Bank's records indicate that the total amount due, inclusive of ongoing interest and penalties, had escalated to Shs1,279,587,998.68.

ABC Capital Bank firmly refutes Mwesigwa's allegations, asserting that its actions have always been lawful and in strict compliance with both the loan agreement and the legal framework governing debt recovery in Uganda. The bank contends that Mwesigwa's public statements falsely portrayed it as a dishonest and fraudulent financial institution that conspires with "mafias" to seize borrowers' property and imposes illegal, excessive interest rates. These claims, the bank argues, have caused significant damage to its corporate reputation and necessitated expenditure on public relations and communication efforts to counter what it describes as a false narrative.

The dispute over the Ameco High School loan defamation has also involved separate court proceedings concerning the property used as security for the loan. Rulings issued on July 30 and August 4, 2026, granted Mwesigwa a conditional temporary injunction related to the recovery process. This injunction mandated that Mwesigwa deposit 30 percent of the outstanding liability into court within 30 days. The bank calculates this required deposit to be Shs392.3 million. ABC Capital Bank posits that Mwesigwa's public statements were a deliberate attempt to exert pressure on the institution and influence public opinion while the underlying loan dispute was already before the court.

This Uganda High Court defamation suit underscores the significant legal risks associated with public statements made during ongoing loan disputes and debt recovery processes, particularly for financial institutions. The case of Andy Mwesigwa ABC Capital Bank defamation highlights how allegations disseminated through traditional and social media can lead to substantial reputational damage and subsequent legal action. Financial institutions, when navigating debt collection, must carefully consider the potential for such claims, emphasizing the need for meticulous communication strategies to protect their corporate reputation and avoid further legal exposure.

For individuals involved in loan disputes, the case serves as a cautionary tale regarding the potential consequences of making public accusations outside formal legal channels. While seeking public support might seem appealing, the bank's response demonstrates that such actions can escalate a financial disagreement into a complex defamation battle, incurring additional legal costs and scrutiny. The outcome of this case will likely set a precedent for how public statements during litigation risk are handled in corporate reputation loan dispute Uganda scenarios, influencing how both borrowers and lenders manage their public interactions during contentious financial matters.

This case highlights the significant legal risks associated with public statements made during ongoing loan disputes and debt recovery processes, particularly for financial institutions. Lawyers advising clients on debt collection or managing public relations during litigation should note the potential for defamation claims arising from allegations made outside formal court proceedings, emphasizing the need for careful communication strategies to protect corporate reputation and avoid further legal exposure.

Source: Original reporting via The Independent