Uganda: Cosase Summons Hassan Basajjabalaba Over Shs140bn Bank of Uganda Loan

14 September 2026
Nile Post (Kampala)
By Sam Ibanda Mugabi

The Parliamentary Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) has summoned city businessman Hassan Basajjabalaba to explain why the Bank of Uganda advanced Shs140 billion to his company, Haba Group of Companies, without security being provided to the Central Bank.

The committee chairperson, Muwada Nkunyingi, also said Basajjabalaba must explain why the loan has reportedly remained unpaid for nine years, a situation the committee says has affected the operations of the Bank of Uganda.

Officials from the Bank of Uganda appeared before COSASE for the second time to respond to queries raised in the Auditor General's report for the financial year 2024/2025.

During the interface, the committee established that the Bank of Uganda advanced Shs140 billion to Haba Group of Companies, owned by Basajjabalaba, but had not recovered the money since 2017.

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"We have discovered that the Bank of Uganda advanced Shs140 billion to Haba Group without any security. Since 2017, not a single shilling has been recovered. This is unacceptable, and it has affected the operations of the Central Bank," Nkunyingi said.

The committee resolved to summon Basajjabalaba to appear before it on Thursday to explain why he did not provide security for the money advanced to his company and why the loan has remained unpaid.

"We have summoned Mr Basajjabalaba to come on Thursday and tell this committee why he took Shs140 billion without security and why he has taken nine years without paying. He must account," Nkunyingi said.

COSASE Summons 58 Online Lenders

In a separate matter, the committee also questioned officials about several financial companies licensed to provide online loans, which are accused of deducting money from alleged guarantors without their consent.

"We are getting many complaints from Ugandans. These online lenders deduct money from people who never consented to be guarantors. We must protect Ugandans from this fraud," said MP Nakiyi.

COSASE has summoned 58 online lending companies to appear before the committee and explain the alleged practices used to recover money from people presented as guarantors without their consent.

"We have summoned 58 online lending companies. They must come and explain how they operate and why they are deducting money from innocent Ugandans," Nkunyingi said.

The committee is expected to scrutinise the lending practices of the companies and establish whether borrowers' alleged guarantors are being subjected to unauthorised deductions.

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