JINJA. A property dispute is simmering between Madhvani Group of Companies and State Minister for Luweero Alice Kaboyo .
The property pitting Madhvani family and Kaboyo through her company Cabel International Ltd is the Rippon Falls Hotel located on Nile Crescent in Jinja City .
The land, originally owned by Asians expelled in 1972, has for a long time been managed by the Departed Asians Property Custodian Board (DAPCB).
Ms Kaboyo applied for it in 2015, telling the Board that the hotel was in shambles and occupied by squatters who pay nothing to the government.
“If we are granted this allocation or license to purchase, we intend to construct modern housing units befitting the urban planning concerns of the area in addition to creating construction jobs for the people of Jinja,” her company wrote in one application.
In another letter, Kaboyo specifically requested the Rippon Falls Hotel land, saying: “We are desirous of reinstating this Hotel… We intend to construct a five-star hotel befitting the urban planning concerns of the area. This will not only boost the tourism status of Jinja town but will also rhyme with our government’s budget targets of job creation and improved standards of living for our nationals.”
DAPCB accepted her request on temporary terms, directing her company to pay rent of Shs1m a month for Plots 33 and 35 and half a million for Plot 31.
In 2016, DAPCB confirmed Cabel International as the lawful tenant and even gave a “no objection” for renovations.
Madhvani Group comes into play
Some years later the Madhvani Group came up claiming ownership of the same property .
It is alleged that Madhvani Group, working with a retired lawyer, tried to use the Sheikh Fazi Ilahi Noordin Charitable Trust to lay claim to the property.
The Rippon Falls hotel complex in Jinja.
The Custodian Board dragged the Madhvanis to court.
In a February 2025 letter, Deputy Attorney General Jackson Kafuuzi said the Madhvanis had “fraudulently acquired the suit property from a one Ali Warris Fachul and later transferred the same into its name.”
He also questioned the authenticity of documents the Madhvanis were possessing.
In a March 2025 correspondence, the Lands State Minister Sam Mayanja, confirmed that only three trustees registered in 1947 were valid, and that Sheikh Fazi Ilahi Noordin Charitable Trust had not filed returns for decades.
“The Trustee is not in compliance with the law as there are no returns regarding the status of the Trust or appointment of new Trustees all the way from the date of its incorporation,” the minister wrote.
The dispute even reached the State House. President Museveni called both sides during which he listened to their sides of the story.
Museveni later observed: “Since the matter is in court, let it be handled there. Whoever wins in court will take the property.”
Not satisfied, the Madhvani family later engaged President Museveni’s young brother Gen. Salim Saleh, asking him to convince Kaboyo to step aside.
Sources said Saleh tried to persuade Kaboyo to let go of the property. He advised the parties to meet and have an amicable settlement.
At one meeting, Kaboyo asked them what it would take to leave her alone.
According to insiders, the Madhvanis demanded not less than $1.5 million (about Shs 5.7 billion). “So if this is what you want from me, how much are you willing to compensate me for my loss?” Kaboyo asked Mayur Madhvani.
Interestingly, Mayur said the Madhvanis could only give Kaboyo not more than Shs 300m.
Sources say the talks collapsed abruptly after what was described as arrogance on the part of the sugar family.
The matter is now before Kampala High Court with Kaboyo insisting she will defend her rights even if it means taking on the wealthy sugar tycoons.