The High Court Commercial Division has ordered Aya Investment Uganda Limited, the troubled owner of the Pearl of Africa Hotel on Nakasero Hill, to pay at least 1.46 billion Shillings to a company that supplied it with electrical materials and related services.
The amount includes the outstanding balance owed to General International Technical Co. (L.L.C) for construction materials and specialised services, as well as accrued penalties. According to court filings from 2023, the company was contracted to provide a wide range of electrical, security, communication and safety system installations for the Pearl of Africa Hotel project.
The services included the supply, testing and commissioning of Air conditioning, closed-circuit Television systems, active components, wireless access points, a fibre-optic network and a high-speed internet system.
The company also handled the intrusion system, inert gas system for switchgear, fire alarm and foam system, kitchen hood fire suppression, and provided materials for the central battery system, cable supplies, only-cover-plate sprinklers and water treatment. It further supervised and tested the BMS system, telephone jack system and CBS.
In total, the services and materials amounted to USD 1,348,819.65. Aya Investment paid USD 1,203,568.43, leaving an unpaid balance of USD 145,250. Despite repeated reminders, the company did not clear the outstanding amount, prompting the lawsuit.
In her ruling, Justice Patience Rubagumya noted that she had examined quotations, invoices, delivery notes, freight documents, email correspondences and EFT receipts, all of which confirmed that General International Technical had supplied the contracted services at the agreed costs.
She observed that Aya’s prolonged non-payment caused the supplier significant financial strain.
“The Defendant’s failure to pay the outstanding amount deprived the Plaintiff of its money for a prolonged time, thereby causing great financial constraints… frustration and setbacks,” Justice Rubagumya stated. “The Plaintiff is entitled to general damages to place it in a near position it would have been in had the Defendant not breached the contract.”
The court awarded the company 65 million Shillings in general damages. It also ordered Aya Investment to pay the outstanding USD 145,250 with interest at 24 per cent per annum from April 2018, bringing the total to USD 389,270 (approximately 1.4 billion Shillings). Aya was further directed to pay the costs of the suit.
Aya Investment Uganda Limited, owned by businessman Muhammad Hamid, has been facing increasing financial troubles. The Pearl of Africa Hotel was recently advertised for auction over unpaid debts. President Yoweri Museveni previously signalled the government’s willingness to bail out the hotel, though the status of those efforts remains unclear.
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