By Our Reporter
NATIONAL
Diamond Trust Bank has moved to enforce mortgages over two prime Soroti properties linked to companies associated with Capt Mukula, as it seeks to recover an estimated UGX3.42 billion debt following defaults on restructured facilities. The properties include commercial premises and a 12.754-hectare tract of land in Soroti.
The properties, company filings indicate, were pledged as security for banking facilities extended to businesses including Healingway Diagnostic and Fertility Centre, Red Shield and Arrow Security Systems.
The properties are registered in the name of Teso Industries Limited, a company principally owned by Mukula, popularly known as Capt Mike Mukula.
In a notice of sale published on Monday, 10th August, 2026, K&K Advocates indicated it had been instructed by DTB to sell the two properties following default on facilities advanced to the companies and secured by mortgages provided by Teso Industries.
The enforcement comes after approximately UGX1.9 billion in principal debt was restructured in May 2025 under a 48-month repayment arrangement carrying annual interest of 20%. The amount arising from the restructured facilities is now estimated at about UGX3.42 billion.
The properties earmarked for sale include a largely undeveloped tract of land at Cambi Jaluwo, Soroti District, measuring approximately 12.754 hectares, and a storeyed commercial building on Jumabhai Road in Soroti City, sitting on approximately 0.047 hectares and housing offices of the National Social Security Fund (NSSF).
Both properties are registered in the name of Teso Industries.
Company filings reviewed by CEO East Africa show that Teso Industries has for years used properties registered in its name as collateral to secure financing from DTB, including facilities advanced for the benefit of associated companies.
The records trace the financing relationship to at least 2021, when Teso Industries created a legal mortgage in favour of DTB. Subsequent filings show the company continuing to use its properties to secure additional banking facilities.
A charge filing dated November 14, 2023, for instance, shows Teso Industries registering a legal mortgage over property in Soroti Block 4 at Acomai, Jajwani, Soroti, securing $3.1 million in favour of DTB. A further legal mortgage over an interest in the same property was registered to secure UGX740 million.
The filings also show Teso Industries pledging property in Soroti Municipality Block 3 on Jumabhai Road as collateral. Two collateral-limited legal mortgages were registered on November 14, 2023, securing $200,000 and UGX740 million, respectively, in favour of DTB.
On their face, the four charges registered in 2023 carried stated secured amounts totalling $3.3 million and UGX1.48 billion.
Those figures, however, do not necessarily represent separate loans or the amount currently outstanding, as multiple mortgages and collateral charges can secure the same or overlapping banking facilities. Rather, the filings illustrate the extent to which Teso Industries’ property portfolio was used to support financing extended by DTB.
The financing arrangements were subsequently consolidated in May 2025, when approximately UGX1.9 billion in principal debt was restructured at an annual interest rate of 20% over 48 months.
The amount arising from the restructured facilities is now estimated at approximately UGX3.42 billion, which DTB is seeking to recover through enforcement of its securities.
CREDIT: CEO East Africa
