Ndere Center up for Auction following Gov’t U-turn on Loan Bail Out

Uganda Development Bank (UDB) has threatened to auction Ndere Centre land owing to a Ugx 10 billion loan.

In a recent development over the matter, the bank said there is no progress on the reported bailout and that the only option is to proceed with the debt recovery proceedings which include auctioning the property.

The bank also found out that the loan facility remains non-performing with no concrete timelines communicated by the Ministry of Finance regarding the expected date of settlement.

To enable them get a clear answer from Ndere Centre Management, the Bank had given the debtor seven (7) days to settle the matter or else they would start a procedure of auctioning the property to eligible buyers.

In 2019, the company acquired a sh6.8 billion loan from Uganda Development Bank (UDBL), which it has since failed to pay back, prompting the bank to put the assets up for auction unless the Ndere proprietors give a satisfactory repayment plan

The projects for which the money was borrowed were to add value to Ndere Centre and its other businesses that included Obuntu Cuddle Resort in Bbira along Mityana Road and Obuntu Tourist Lodge near Lake Mutanda in Kisoro district.

These, and the iconic Ndere Centre, are now up for auction. It is claimed that Ndere was paying sh22 million initially, but that this amount increased to 30 million due to the compounding of interest. 

In August 2024, UDB wrote to Ndere notifying it of the intention to auction its assets, and a concerted campaign saw the process suspended after the government reportedly committed to bailing it out.

However this month the Ministry of Finance, Planning and Economic Development refuted claims that it was supposed to bail out the Ndere Cultural Centre from its indebtedness that now threatens its end.