The High Court Commercial Division in Kampala has ordered Bishop Dr Hamlet Kabushenga Mbabazi to refund more than Shs405 million in donor funds received for projects under the Child to Family Community Development Organisation (CHIFCOD) but which he failed to account for.
Justice Anna Bitature Mugenyi, the head of the Commercial Division, also ordered Kabushenga to pay interest at a rate of 10 per cent per annum from January 12, 2022, until full payment, together with the costs of the suit.
In a ruling delivered in October 2026, the court recognised Honest Wilkins Natukwasa and Eleanor Nyamishana as the legitimate directors of CHIFCOD, following Kabushenga’s resignation in April 2020. However, the judge ruled that Kabushenga, Natukwasa and Nyamishana would all remain members of the organisation.
Kabushenga, a former Member of Parliament for Kinkiizi East County and Bishop of the Free Methodist Church, founded CHIFCOD in 2016.
The organisation operates several educational institutions, including Great Lakes Regional College Kanungu, Kirima Parents Primary School, Rutenga Parents Primary School, Nyakabungo Parents Primary School and Great Lakes High School.
The dispute arose from complaints by several funders, including Uganda Development Initiative, Kirima Limited, the Protestant Church of Eppingen in Germany and CHIFCOD Enterprises Limited, over the management and accountability of funds intended for the organisation’s education projects.
In Civil Suit No. 0018 of 2022, the plaintiffs, represented by MMAKS Advocates, asked the court to compel Kabushenga to refund the money, return organisational property registered in his name, permanently withdraw from CHIFCOD’s activities and pay damages and legal costs.
According to the plaintiffs, John Rutherford, a member of Kirima Limited, visited Nyakabungo and Kirima primary schools in 2019 and discovered that the main halls at both schools, as well as a laboratory at Great Lakes High School, remained incomplete despite the release of funds for the works.
The funders accused Kabushenga of engaging IBB International Limited to prepare progress reports indicating that Shs179.4 million had been spent on the construction of the main hall at Kirima Primary School, while Shs207 million had been spent on the hall at Nyakabungo Primary School.
They questioned the reported expenditure because the projects had not been completed, raising concerns about the use of the funds released for construction.
The plaintiffs also alleged that the institutions had outstanding tax obligations to the Uganda Revenue Authority despite funds having been provided to meet those liabilities.
In another allegation, Kabushenga was accused of mortgaging property belonging to Great Lakes Regional University to PostBank Uganda to secure a loan, which the plaintiffs claimed was used to finance his personal development projects in Kampala and Busiro, Wakiso District.
The suit further cited a payment of more than Shs2 million that Kabushenga allegedly authorised without specifying its purpose.
Kabushenga, who was represented by Alvarez Advocates, led by Patrick Alunga Alvarez, contested the claims. He argued that the donors had no legal right to demand accountability for the funds and maintained that 80 per cent of CHIFCOD’s assets existed before the funders became involved with the organisation.
He also challenged the directorship of Natukwasa and Nyamishana, accusing them of forging documents to present themselves as directors of CHIFCOD Enterprises Limited.
Speaking to Uganda Radio Network on Wednesday, Natukwasa welcomed the ruling, saying he was pleased that the court had delivered justice and cleared his and Nyamishana’s names in the leadership dispute.
Efforts to obtain a comment from Kabushenga were unsuccessful, as his mobile phones were unavailable by press time.
The dispute over CHIFCOD’s leadership had previously disrupted the operations of Great Lakes Regional University, attracting the attention of security authorities and the National Council for Higher Education.
The institution was closed for a month in November 2021 amid the leadership wrangles, with the dispute contributing to several other closures.
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