Kampala businessman Muhammed Ssebagala, proprietor of Ssebagala & Sons and owner of Light of the World Electrical Shops in Kiyembe, is reportedly under immense pressure after court bailiffs acting on behalf of Diamond Trust Bank (DTB) threatened to auction off his remaining assets.
According to reliable sources, the embattled tycoon is being pursued over an outstanding loan of Shs 1.28 billion, which he acquired from DTB a few years ago. The bank has now moved to enforce a court ruling authorizing the recovery of the funds through asset seizure. Court bailiffs have since issued notices warning of impending action unless the debt is settled.
Insiders reveal that Ssebagala had closed down several of his electrical shops years ago after his financial woes began. His troubles reportedly started after he borrowed money from city mogul Sudhir Ruparelia, which ultimately led to the loss of most of his shops. Sources say Sudhir, acting as a money lender, moved in to recover his funds by taking over Ssebagala’s shop stock and property—further compounding the businessman’s debt burden, especially with banks like DTB still expecting loan repayments.
In an attempt to stop DTB’s enforcement action, Ssebagala has reportedly turned to the Commercial Court, seeking an injunction to block the sale of his properties. He argues that the court ruling was unfair and claims that he had already paid a significant portion of the loan—allegedly half the amount—before the bank escalated the matter. He questions how the figure ballooned back to over one billion shillings.
DTB’s legal team has dismissed his claims, stating that Ssebagala’s wife, Hajjat Rehema, who was linked to the loan, had earlier denied knowledge of the transaction and refused to cooperate with recovery efforts. The bank accuses the couple of giving misleading information in an effort to delay the legal process.
Ssebagala’s downfall is being viewed as a cautionary tale in Kampala’s business circles, where over-leveraging through informal lenders and mainstream banks has left many entrepreneurs vulnerable to asset seizures and bankruptcy. What was once a thriving electrical empire in downtown Kampala now hangs by a thread, as legal and financial pressures continue to mount.
