Shumuk, a longstanding and renowned brand in Uganda, continues to navigate challenges that threaten its operations and financial stability.
Owned by businessman Mukesh Shukla, the Shumuk group of companies has been embroiled in legal disputes and financial difficulties in recent years.
The saga began around 14 years ago when Shumuk and associated companies became entangled in a legal battle with the late businessman Bonney Katatumba and later his daughter, Angella Katatumba, over a significant sum of $5 million (Shs 19.2 billion). This confrontation resulted in public confrontations and legal proceedings that have spanned over a decade, leaving both parties bruised and entangled in complex legal disputes.
In addition to the Katatumba drama, Shumuk has faced more pressing existential challenges, particularly related to financial obligations and debt repayment.
In 2018, MMAKS Advocates, acting on behalf of a financial institution, initiated the sale of at least seven properties owned by Shumuk due to a debt obligation exceeding Shs 10 billion. Despite efforts to challenge these actions in court, including securing temporary injunctions, Shumuk’s financial strains persisted.
The troubles escalated when Shumuk accused Bank of Baroda of exacerbating its financial difficulties by drastically reducing overdraft facilities and imposing unfavorable lending terms. Disputes over loan amounts, interest rates, and repayment terms further strained the relationship between Shumuk and Bank of Baroda.
Recent developments in the legal battle include a temporary injunction issued by the Commercial Division of the High Court to halt the sale of disputed properties pending the resolution of the main legal dispute. Shumuk has vehemently denied owing any debts to Bank of Baroda, while the bank maintains that Shumuk owes substantial amounts with accrued interest.
