By Joseph Kiggundu
Dei Industries International ,Uganda’s flagship pharmaceutical and vaccines manufacturing facility is sinking in debts after a financial institution issued a public notice of intended sale by auction all the company’s properties .
The company is owned by businessman Dr Mathias Magoola and but government has made significant investment to see it grow into a regional pharmaceutical and vaccines manufacturing hub .
In the notice published in the government -owned New Vision on November 5 , the debt recovery exercise targets several high-value commercial and industrial properties, in which the government has been a co-investor. The notice was published by Jald (U) Ltd, a debt collection and court Bailiff Company based in Kampala.
“Upon instructions from our client, a financial institution, we shall proceed to sale by Public Auction/Private treaty the Commercial Property thereon below mentioned,” the notice reads.
“Unless Dei Industries International Ltd or its guarantors pays to our client the outstanding loan balances, Interest plus our fees and disbursements before the date of sale,” the notice further reads. The specific amount owed was not disclosed.
The debt collector said the properties would be sold 30 days after publication of the notice, dated November 5. It also directed occupants to vacate the premises within 14 days to allow prospective buyers to inspect them.
The properties lined up for public auction or private treaty are located in several prime areas of Kampala and Wakiso districts. They include; the factory establishment in Matugga, Wakiso District, registered under Dei Industries International Ltd and Dei Natural Products International Ltd. The property is described as Kyadondo Block 82, comprising plots 988, 3325 and 3326, measuring approximately 20.673 acres.
The debt collector also targets the Luzira Industrial Plant, a fully integrated and operational wheat milling facility situated along Sixth Link Road in Luzira and registered under Dei Industries International Ltd.
Other properties listed include establishments in Kyamuli-Kungu and Katwe, a residential property in Muyenga, a hospital in Kitende and a commercial property in Seguku.
Government investment
Information from Parliament indicates that the government has so far invested Shs723.4 billion in the pharmaceutical manufacturing project of businessman Dr Magoola’s Dei BioPharma Limited.
During an October 6, 2026, sitting of Parliament, the Committee on Presidential Affairs called for stronger accountability, reliable utilities and clear performance targets for Dei BioPharma Limited.
Mr Martin Ojara Mapenduzi, while presenting the committee’s report on its assessment of selected Science, Technology and Innovation projects, said: “Government should ensure that clear documentation of government’s shares in Dei BioPharma, the expected returns, deliverables and performance targets, commensurate with the public resources invested, are provided.”
“The committee was informed that the Government had cumulatively invested approximately Shs 723.4 billion in DEI BioPharma Limited. The support comprised an initial allocation of Shs 70 billion in Financial Year 2023/2024,” he added.
He said another Shs75 billion was provided in December 2023, while Shs578.4 billion was provided in the 2024/2025 financial year through a supplementary budget to support the development and commercialisation of the pharmaceutical manufacturing facility.
“The project needs an additional US$ 434 million to fully operationalise the facility,” Mr Ojara added.
Although proof of the government’s shareholding was not presented during the assessment, the committee said it had established that the government holds a 9.4 per cent stake in the company, which is expected to increase if additional financing is provided.
In its recommendations, the committee said: “Government should ensure that clear documentation specifying government’s shares in DEI-BioPharma, the expected returns, deliverables and performance targets commensurate with the public resources invested are executed with the enterprise.”
“Government should facilitate regulatory compliance and market access for DEI BioPharma products without compromising applicable pharmaceutical quality and safety standards,” Mr Ojara added.