Category: East Africa Community

  • Kampala University campus in Kenya up for sale over $15m debt

    Kampala University campus in Kenya up for sale over $15m debt

    An auctioneer has put up for sale an educational complex in Kajiado County belonging to Kampala International University (KIU) to recover a debt of $15 million owed to mortgage lender Housing Finance.

    Valley Auctioneers on Monday invited bids for the purchase of the complex that sits on a 61.3-acre parcel of land in Kisaju, approximately 1.5 kilometres off the Nairobi-Namanga Highway.

    The incomplete educational complex comprises a four-storey administration block, five five-storey tuition blocks comprising five interconnected blocks, a four-storey library, two kitchen and dining blocks, a five-storey housing block and a hostel block.

    The complex also has a five-storey guest house, a powerhouse, stores block, a security guard block, and a four-bedroom bungalow.

    “All interested purchasers are requested to view and verify the details as the financiers/charges or the auctioneers do not warrant these,” Valley Auctioneers said in a newspaper notice, adding that the sale would be conducted on September 19.

    KIU lost a bid to block the sale of the Kisaju property in April after the Supreme Court dismissed its second appeal in the loan dispute.

    The university borrowed the loan in 2014 to develop its Kitengela campus but defaulted.  Buoyed by the success of its existing campuses, the university sought to expand into the Kenyan market and acquired the land to construct the Kitengela Campus at an estimated cost of $15 million.

    The loan had a 9.5 percent compounded interest rate from January 2018—which means that KIU is required to repay an excess of $24million.

    KIU first approached Housing Finance for the loan in 2010 and the deal was inked in 2014. The land was charged to the mortgage lender as security for the loan.

    According to KIU, the bank disbursed a loan of $10 million in January 2014, but there was a delay in disbursing the balance of $5 million.

    The university then sued for damages, among other demands and Housing Finance filed a counterclaim, which was upheld by the arbitrator, who ruled in favour of the lender in 2019.

    A subsequent appeal to the High Court was dismissed by Justice Margaret Muigai, forcing KIU to head to the Court of Appeal, but suffered the same fate and, unsatisfied, the university escalated the matter to the Supreme Court.

    In April, a bench of five judges of the Supreme Court dismissed the second appeal, saying there was no constitutional interpretation in the matter to allow the apex court to invoke its jurisdiction and determine the case.

    “This court has consistently held that the mere claim by a party to the effect that its rights were violated by a superior court for whatever reason, does not bring the intended appeal within the purview of Article 163 (4) (a) of the Constitution,” the Supreme Court said.   

    The judges added that the appeal by KIU did not fall within any of the exceptions that would justify the court to assume jurisdiction and deal with the matter.

    “In fact, we are satisfied that, by declining to grant leave to appeal in the circumstances of this case, the Court of Appeal was correctly guided by our decisions,” Deputy Chief Justice Philomena Mwilu and Justices Mohammed Ibrahim, Smokin Wanjala, Njoki Ndung’u, and Isaac Lenaola said.

    About Kampala International University

    Kampala International University (KIU) is a private, not-for-profit institution based in Uganda. It was established in 2001 and assumed chattered status in 2009.

    In pursuit of the dream to raise the next generation of problem solvers for the East African region and indeed the whole of Africa, the University operates a multi-campus system which consists of two campuses in Uganda (The Main campus in Kampala and the Western Campus in Ishaka-Bushenyi); one other university in Dar Es Salaam, Tanzania.

    The University which started as a typical degree-awarding institution has now grown into the number one Private University in Uganda and is currently ranked 2nd in Uganda and 4th in East Africa according to the latest 2024 Webometric Ranking. It is a member of the Association of Commonwealth Universities, the Association of Africa Universities as well as the Inter University-Council of East Africa. The University offers a variety of programmes in Health Sciences, Science and Technology, Engineering, Business and Management, Law, Humanities and Education.

  • Somalia pins corporates over independent Somaliland label

    Somalia pins corporates over independent Somaliland label

    Somalia says it will make good its threat of punishing corporate bodies labelling or operating as though Somaliland is independent territory.

    Mogadishu had said all firms with operations in Somalia should, by September 1, have altered information on their network platforms to reflect that Somaliland was a part of Somalia.

    Somalia’s Ministry of Commerce and Industry (MoCI) referred to the country’s provisional constitution to order companies to slash the name of Somaliland, the self-declared independent territory, from their network information sites.

    Money transfer agencies such as Paysii, Dahabshil and Jubba Express were specifically named in that communique that was also meant to draw the attention of other remittance dealers and companies to stop using the name of Somaliland instead apply Somalia, giving deadline.

    Ethiopian Airlines which flies to Hargeisa and Mogadishu was also fingered after it had labelled the Somaliland destination as a separate country.

    “Use Somalia only in your systems as from 1st of September (this year),” Commerce and Industry Minister Jibril Abdirashid Haji Abdi had said on August 24.

    The Somali Civil Aviation Authority (SCAA) had also directed airlines using Somali airports to stop referring cities such as Hargeisa, the capital of Somaliland territory, as different from Somalia.

    The matter though is reflective of the events since January 2 this year when Ethiopia and Somaliland inked an MoU that could grant Addis Ababa a coastal strip to build a naval base ostensibly in return for recognising Somaliland, which has fought for recognition since 1991 without success.

    That MoU irked Mogadishu, which has gone on to protest at every global forum, accusing Ethiopia of plotting to dismember Somalia.

    Somaliland, however, insists that Mogadishu has refused to recognise the real problem.

    Regionally, Somalia has often reacted fast when countries tried to deal with Somaliland as independent. Somalia cut diplomatic ties with Kenya in December 2020, accusing Nairobi of interfering with Mogadishu’s internal affairs after it hosted Somaliland leader in Nairobi. It resumed relations six months later.

    It had, in 2019, also cut ties with Guinea after it gave Somaliland leader Muse Bihi a red-carpet reception.

    While no sovereign state has formally recognised Somaliland, Shirwac said Somaliland continue to engage with the international community and “to form strategic partnerships.”

    “It is in the interest of the entire region for Somalia to recognize the sovereignty and independence of Somaliland.”

    Those partnerships may now face a test. Ethiopian Airlines and Flydubai were specifically warned their landing rights could be revoked if they didn’t change. Ethiopian Airlines came into controversy after it showed Hargeisa without the name of the country while Flydubai described it as located in Somaliland.

    Earlier this year, some airlines complained of receiving contradictory navigation instructions from air traffic controllers in Somalia and Somaliland, risking safety of passengers. Internationally, only one Somali airspace is recognised, however.

    Both airlines stopped referring Hargeisa and other landing sites in the region as Somaliland and applied Somalia as instructed.

    But it came after Ethiopian’s request for a longer timeline was refused.

    “Given the available technological capabilities, we believe the necessary corrections should not take more than two days,” SCAA said.

    Nonetheless, the issue raised strong reaction from leaders in Somaliland authority.

    Abdirahman Mohamed Abdullahi Irro, a politician seeking to unseat Bihi in the next elections labelled the Somali government’s order as a ‘blatant aggression.’

    “The government in Somalia has recently been orchestrating attack on the people, internally and externally, displaying hate and violence,” Irro said this week.

    Khadar Hussein Abdi, the Secretary General of opposition Wadani Party, argued the push by Somalia will galvanise Somaliland.

    “Somaliland did not emerge from expression of words and written papers, but from blood spilled,” he said, invoking Somaliland’s reasons to break away after the region was bombed by the Siad Barre regime in the late 1980s civil war.

    Somaliland has often depicted Somalia as a failed state and Bihi said the same last month when Egypt sent arms to Somalia to support local forces against al-Shabaab, but which irked Ethiopia.

    “President Hassan (Somali President Hassan Sheikh Mohamud) who cannot even secure his own palace in Mogadishu without foreign troops, is issuing directives to force planes landing in our territory and banks from operating under our name to change,” stated Bihi at a public gathering in Hargeisa on August 26.

    “Somalia’s efforts to undermine Somaliland’s independence are ineffective. These directives will not change the reality on the ground and our status.”

    Somaliland, once known as British Somaliland Protectorate attained independence from UK on 26 June 1960 and voluntarily merged with Italian Somaliland to form the Somali Republic on 1st July 1960.

    Since the territory unilaterally reclaimed independence on 18th of May 1991, following the collapse of Siad Barre’s regime, it enjoyed a de facto self-rule with a functioning democracy, having own central bank and a separate currency.

    For now, corporates have weighed business gains or losses. Ethiopian, for instance, faced the grim reality of losing business in Somalia, including 6 fight destinations and two daily flights to Mogadishu.

    Money remittance companies and other entities cleared their issue via the Somali Chamber of Commerce and Industry (SCCI) which said it “stands for the advocacy on matters affecting investors, manufactures and traders.”