ABC Capital Bank has sued former Uganda Cranes captain Andy Mwesigwa for defamation, accusing him of making false and malicious allegations against the bank amid a bitter dispute over a loan secured against his school in Wakiso.
In a plaint filed before the High Court in Kampala, the bank seeks general, punitive and exemplary damages, a permanent injunction restraining Mwesigwa from making further defamatory statements, a public retraction and apology, interest at 25 per cent per annum and costs of the suit.
The legal action follows public statements attributed to Mwesigwa in which he appealed to President Yoweri Museveni to intervene in the dispute, alleging that “sports mafias” were working with ABC Capital Bank to take over his AMESCO High School.
The bank says the allegations were published through online media, Galaxy FM and social media platforms including TikTok and YouTube. It particularly objects to claims that it was working with “sports mafias” to take over the school and that it had imposed an unlawful 30 per cent monthly interest rate that was not contained in the original loan agreement.
ABC Capital argues that the statements portrayed it as a dishonest, fraudulent and predatory financial institution that conspires with “mafias” to take borrowers’ property. The bank maintains that its actions have at all times been lawful and undertaken within the terms of the loan agreement and the legal framework governing debt recovery.
The defamation suit comes as the underlying loan dispute continues before the Commercial Court.
Court records show that Mwesigwa’s school obtained a Shs480 million facility from ABC Capital under a December 2019 facility letter, secured by a mortgage over land at Bugwanya, Kakiri, Wakiso District. The bank says the borrower subsequently defaulted and that several statutory notices of default and sale were issued between March 2021 and March 2026.
ABC Capital’s fact sheet says the loan carried an effective interest rate of 23.5 per cent, while the contractual penal rate was 38.5 per cent—comprising the normal 23.5 per cent interest plus a 15 per cent penalty. It says the borrower has paid approximately Shs338.4 million, but missed or insufficient instalments left the account in arrears.
The bank further says the loan was written off in June 2024 at Shs787.37 million, stressing that the write-off did not amount to cancellation or waiver of the debt. Its records put the amount due at Shs1.279 billion as of May 18, 2026, although the bank told court that the outstanding liability had reached Shs1.307 billion by May 26.
In a separate ruling dated August 4, 2026, court conditionally granted Mwesigwa’s application for a temporary injunction, restraining ABC Capital from selling or otherwise dealing with the mortgaged property pending determination of the main suit. However, the court ordered the applicant to deposit 30 per cent of the outstanding liability within 30 days.
Based on the bank’s Shs1.307 billion figure, the security amounts to approximately Shs392.3 million.
Mwesigwa’s challenge to the debt, interest calculations and recovery process remains before court, while ABC Capital is now seeking to have his public accusations formally adjudicated as a separate defamation claim.
