By Johannah Nantongo
On Fumu Lane in Kololo, mornings unfold with practiced calm. Security guards linger by gates, gardeners tend hedges, and vehicles move quietly through the leafy neighborhood. But inside Condominium Unit 2, LRV KCCA 119/19, uncertainty hangs heavily.
The family of the late Cedric Ndilima Babu is waiting — for a court decision, for clarity, and for a determination that could decide whether their home will be sold within 21 days.
Cedric, a sports administrator and son of businesswoman Olive Zaitun Kigongo and former minister Francis Babu, died on May 31, 2025, after a sudden illness. Weeks later, his family found themselves confronting a different kind of crisis — one centered not on medicine, but on mortgage and insurance obligations.
A Trip That Changed Everything
In April 2025, Cedric traveled to Kigali with his son for a tennis tournament. What was meant to be routine — sport and father-son time — turned serious when he collapsed. Doctors diagnosed ischemic heart disease, severe cardiac dysfunction, and dangerous clotting complications.
He was airlifted to Nairobi for specialized treatment. A heart transplant was reportedly considered, but his condition worsened. He died on May 31.
The country paid tribute, honoring him with a national sports medal. Public mourning followed. Then came correspondence from the bank.
The Mortgage and the Insurance Requirement
On July 14, 2023, Cedric secured a USD 200,000 mortgage from KCB Bank Uganda Limited to purchase the Kololo condominium. As with many mortgage facilities, the loan required enrollment in a Group Mortgage Protection Policy — a life insurance cover intended to clear the outstanding loan balance in the event of the borrower’s death.
According to court documents, the loan was secured by a mortgage on the Kololo property. The bank now states that the outstanding balance stands at approximately USD 182,710 plus accrued interest.
The family does not dispute the loan. Instead, they argue that Cedric met his obligations under the mortgage and that life insurance was a mandatory precondition for the facility.
The Disputed Lapse
The dispute centers on the insurance policy.
In a sworn affidavit, KCB maintains that the policy lapsed in August 2024 after renewal premiums were not paid. The bank argues that responsibility for maintaining and renewing the policy rested solely with Cedric, and that the lapse meant there was no active cover at the time of his death in May 2025.
The family, however, presents a different interpretation. They contend that the mortgage agreement allowed the bank to automatically renew the policy at the borrower’s expense if renewal was not completed in time. They further argue that the bank acted as an insurance intermediary — collecting premiums and managing documentation — and therefore had both authority and responsibility to ensure continuity of coverage.
After negotiations reportedly failed to resolve the matter, the family, through their lawyer, filed suit in the Commercial Division of the High Court.
The 21-Day Notice
While the case proceeds, the bank has issued notice of its intention to sell the property within 21 days, citing default.
KCB argues that foreclosure is a lawful and foreseeable consequence where loan obligations are not fulfilled. The family insists this is not a simple case of non-payment but rather a question of whether an insurance safeguard — specifically required as part of the mortgage — should have protected the home after Cedric’s death.
Beyond their own situation, the family says the case raises broader concerns. In Uganda, thousands of mortgages are bundled with life insurance products that borrowers assume will shield their families from losing their homes if tragedy strikes. The court’s decision could clarify where responsibility lies when such coverage lapses: with the borrower, or with a lending institution that facilitates the policy.
Awaiting Judgment
As legal arguments unfold, the family has appealed for privacy and sensitivity, emphasizing that children are involved.
For now, daily life on Fumu Lane continues as usual. Gates open and close. Traffic hums. But inside one Kololo condominium, the atmosphere remains tense.
At issue is more than a property sale. The case sits at the intersection of contract terms, insurance practice, and consumer expectations — and its outcome may influence how mortgage protection policies are understood across the country.
A family grieves. A bank enforces its contractual rights. A court prepares to rule.