By Sadique Bamwita
KAMPALA
Tycoon Dr. Mathias Magoola risks losing his 20-acre industrial establishment in Matugga, an operational wheat Milling plant in Luzira, a hospital in Kitende and several commercial and residential properties belonging to him and companies associated with him over unpaid bank loans.
Due to unpaid bank debts, Magoola’s business empire, particularly his pharmaceutical manufacturing ambitions, which attracted Shs723.4 billion in government investment is likely to be affected.
His financial woes emanate from a prolonged debt dispute involving his companies, Equity Bank Uganda and Equity Bank Kenya, over credit facilities reportedly advanced to finance the establishment of pharmaceutical manufacturing facilities and other business operations.
According to the notice published on November 5, 2026, by Jald (U) Ltd, a debt collection and auctioneering firm, the properties will be sold through public auction or private treaty unless Dei Industries International Ltd and its guarantors settle the outstanding loan balances, accumulated interest, fees and other costs.
The creditor identified only as a financial institution in the advertisement, has given the affected parties an opportunity to clear their obligations before the sale.
The auctioneer has also directed occupants to vacate the premises within 14 days to allow prospective buyers to inspect the properties.
The development is particularly significant because some of the assets are linked to businesses that have received substantial public support, raising questions about the financial health of Magoola’s investments and the protection of taxpayers’ money.
The properties advertised for sale are spread across Kampala and Wakiso districts and include industrial, commercial, healthcare and residential establishments.
One of the biggest assets is an industrial establishment in Matugga, Wakiso district, measuring approximately 20.673 acres. It is registered under Dei Industries International Ltd and Dei Natural Products International Ltd.
Another major property is a fully integrated and operational wheat milling plant along Sixth Link Road in Luzira, Kampala, registered under Dei Industries International Ltd.
The other properties include an industrial establishment in Kyamuli-Kungu, commercial premises in Katwe, a residential property in Muyenga-Kisugu registered in Magoola’s name, a hospital property in Kitende and commercial premises in Seguku registered under Rutungu Investments.
The inclusion of the Luzira wheat milling plant is particularly significant because the facility was previously identified as a major source of revenue expected to service the loans advanced to Magoola’s businesses.
According to available info indicate that Equity Bank Ltd extended financing of up to US$100 million (about Shs368.7 billion) to support construction, importation of high-technology medical equipment and machinery, as well as working capital requirements.
Uganda Development Bank contributed another US$20 million (about Shs73.7 billion), while Tropical Bank provided US$2 million (about Shs7.3 billion), all in the form of loans.
The financing was intended to support the establishment of a pharmaceutical manufacturing facility and related business operations.
However, the plans reportedly changed when the Covid-19 pandemic struck in 2020.
Magoola had initially sought approximately US$60 million (about Shs221 billion) from Equity Bank to expand Dei Industries.
When the pandemic created opportunities in vaccine manufacturing, his partners reportedly persuaded him to shift attention from the original pharmaceutical manufacturing plan towards vaccine development.
With insufficient capital to finance the new undertaking, Magoola reportedly returned to Equity Bank and sought another US$60 million (about Shs221 billion) under Dei BioPharma Ltd to facilitate the production of Covid-19 vaccines.
The shift in investment priorities and the transfer of working capital from Dei Industries to Dei BioPharma reportedly contributed to the financial difficulties that followed.
Dei Industries subsequently defaulted on loan repayments, prompting concerns among the lenders about the companies’ ability to service their obligations.
Beyond the commercial dispute, the proposed sale raises questions about the government’s investment in Dei BioPharma, which was presented as a strategic intervention to strengthen local pharmaceutical manufacturing.
Government has cumulatively invested Shs723.4 billion in the project.
The funding comprised Shs70 billion appropriated in the 2023/2024 financial year, another Shs75 billion provided in December 2023 and Shs578.4 billion released through a supplementary budget in the 2024/2025 financial year.
The investment was intended to support the development and commercialisation of the pharmaceutical manufacturing facility, reduce dependence on imported medicines and strengthen Uganda’s capacity to manufacture essential drugs locally.
However, the investment has attracted scrutiny from Parliament, particularly over the government’s shareholding, accountability and expected returns.
On October 6, 2026, Parliament’s Committee on Presidential Affairs, chaired by Martin Ojara Mapenduzi, presented findings from its assessment of selected Science, Technology and Innovation projects, including Dei BioPharma.
The committee called on government to ensure proper documentation of its shareholding, expected returns, deliverables and performance targets commensurate with the public resources invested.
It was informed that government holds a 9.4 per cent stake in the company, although documentary evidence of the shareholding was not presented during the assessment.
The committee was also informed that the pharmaceutical project requires an additional US$434 million to become fully operational.
The latest developments therefore raise questions about the relationship between the government’s investment in Dei BioPharma and the financial obligations of the other companies associated with Magoola.
It is important to note that the properties advertised for sale are registered under different companies and individuals. The auction notice does not establish that Dei BioPharma itself or the government’s shares in the pharmaceutical company are being sold.
