By Maria Mariam Namala
The High Court Commercial Division has ruled in favour of Finicon (U) Limited in a 14-year dispute over consultancy services for two projects in the posh Kampala suburb of Kololo.
The High Court Commercial Division has ordered businessman Patrick Bitature to pay Finicon (U) Limited $256,136.17 (about Shs954 million) over unpaid professional consultancy fees arising from two projects contracted in 2012.
Justice Stephen Mubiru delivered the judgment on August 18, 2026, bringing to an end a dispute over architectural, engineering and project management services provided by Finicon.
The award is exclusive of value-added tax (VAT).
The dispute arose from two agreements between the parties: one dated July 6, 2012, for professional consultancy services for a high-end boutique hotel on Summit View Road, Kololo, and another dated August 24, 2012, for the remodelling of Bitature’s residential house on Plot 9.
The hotel project was estimated at an investment value of between US$5 million and US$6 million, while the residential project involved consultancy services for the proposed remodelling of Bitature’s home.
Under the hotel contract, Finicon’s consultancy fee was set at five percent of the total construction cost, with $6 million serving as the locked sum for purposes of calculating the fee. Where the bills of quantities were lower than the locked sum, the fee would be recalculated based on the lower amount.
The residential agreement similarly provided for a professional fee of five percent of the total construction cost, with the construction cost to be determined through estimates and, where necessary, detailed bills of quantities.
Finicon told court that it had carried out substantial work under the two agreements, including feasibility assessments, architectural designs, production drawings, tendering processes and obtaining approvals from the National Environment Management Authority and Kampala Capital City Authority.
The company said the hotel project progressed to the preparation of bills of quantities, while the residential remodelling project reached the tender action stage.
Finicon argued that it had completed approximately 76 percent of the contracted consultancy work .The company initially claimed professional fees amounting to $228,000 under the July 2012 contract and $63,136.20 under the August 2012 contract, bringing its total claim to $291,136.20.
It said Bitature had, by October 28, 2014, paid only $23,538, leaving an alleged outstanding balance of $267,598.20, exclusive of VAT.
Bitature, a businessman, entrepreneur and investor, best known as the founder and chairman of Simba Group of Companies, a diversified business conglomerate with interests in telecommunications, energy, real estate, hospitality and media, disputed the claim, arguing that the projects had not progressed sufficiently to justify the amount demanded.
His lawyers also argued that the contracts were ambiguous because the final construction costs had not been ascertained.
Bitature maintained that the $23,538 he had paid was agreed to be full and final settlement for the work undertaken and that Finicon could not recover additional sums relating to payments it had made to subcontractors.
The defence further argued that the hotel project value claimed by Finicon was US$12,420,892.36, while the value declared to NEMA was Shs5.35 billion.
Bitature’s lawyers also raised allegations concerning fraud, lack of privity and the professional qualifications of people involved in executing the work.
Judge rejects Bitature’s arguments
The court, however, found that the allegations of lack of privity and fraud had not been pleaded and were introduced during the trial.
The defence also maintained that the residential project never progressed beyond the concept stage.
In its submissions, Bitature’s lawyers stated: “The project never proceeded past the concept stage.”
Judge Mubiru rejected the argument that the contracts were unenforceable because of ambiguity, finding that the agreements contained a mechanism for determining the amount payable even where the parties disagreed over the final construction cost.
The judge held that “none of the two contracts suffers from any ambiguity that would render it unenforceable.”
On the extent of work completed, the court found that Finicon had completed work up to Stage G, bills of quantities, for the hotel project and up to Stage H, tender action, for the residential remodelling project.
The court considered evidence of the work presented to Bitature and the relevant authorities before determining the fees earned under the two agreements.
Judge Mubiru found that Finicon had earned $216,000 in consultancy fees for the hotel project and $63,136.17 for the residential project, bringing the total fee to $279,136.17.
The judge also rejected the argument that the $23,538 payment constituted full and final settlement.
The court found no clear agreement showing that Finicon had accepted the payment as settlement of the entire debt.
Judge Mubiru also noted that Bitature had given contradictory evidence concerning how the $23,538 was paid, describing it at one point as instalments and at another as a lump sum.
The court also considered Finicon’s claim for general damages arising from the delay in payment and alleged reputational injury.
Judge Mubiru held that the outstanding principal and interest were adequate compensation for the financial loss caused by the delayed payment.
The court rejected the claim for punitive or exemplary damages, explaining that such damages are generally not recoverable in an action for breach of contract.
“The law of contract remedies are focused on enforcing the parties’ agreed obligations rather than penalising wrongdoing,” the judgment stated.
The court further held that awarding general damages for loss of reputation on top of interest would amount to double compensation for the same underlying failure to pay.
On costs, Judge Mubiru applied the general rule that costs follow the event, meaning the successful party is ordinarily entitled to recover its costs unless there is a good reason for the court to order otherwise.
Judge Mubiru ultimately entered judgment in favour of Finicon and ordered Bitature to pay $256,136.17, about Shs954.1 million, exclusive of VAT.
The amount will attract interest at nine percent per annum from May 20, 2014, when it fell due, until payment in full.
The court also awarded Finicon the costs of the suit.
The ruling was delivered electronically on August 18, 2026, with M/s Blair & Co. Advocates appearing for Finicon and ENSafrica Advocates representing Bitature.