The Ministry of Finance, Planning and Economic Development has dismissed reports suggesting it had agreed to bail out the indebted Ndere Cultural Centre, despite a statement from Uganda Development Bank (UDBL) indicating that the government had made such a commitment in 2024.
Established in 1984 as a cultural performance troupe, Ndere has evolved into one of Uganda’s leading centres for cultural tourism, heritage conservation, and promotion. It operates several ventures across the country and has become a symbol of national cultural pride.
In 2019, Ndere Centre secured a 6.8 billion shilling loan from UDBL to fund expansion efforts. However, the company has since struggled to repay the loan, prompting UDBL to initiate plans to auction its assets.
The bank issued a seven-day ultimatum, ending Monday, July 7, for the proprietors to present a viable repayment plan or risk losing their properties.
In response to an auction notice issued in August 2024, Ndere’s management, led by founder and Executive Director Stephen Rwangyezi, petitioned the government for intervention. President Yoweri Museveni reportedly instructed the Finance Ministry to rescue the institution.
This was followed by a meeting at the Office of the Prime Minister where the government is said to have committed to saving the cultural centre by December 2024.
On September 25, 2024, Ndere Centre publicly announced via social media that the government had agreed to acquire shares in the organisation to help clear a ballooning debt that had grown from 4.6 billion to 10.8 billion shillings due to COVID-19-related disruptions and accumulating interest.
However, nine months later, UDBL announced plans to proceed with auctioning Ndere’s assets, stating that the organisation had failed to meet repayment obligations. The Ministry of Finance has now disowned any formal commitment to a bailout.
Efforts to contact Rwangyezi were unsuccessful, and Martin Ssempa, a vocal supporter who led a public campaign to save Ndere, declined to respond to repeated calls.
Ndere’s financial troubles date back to the onset of the pandemic. Although the 6.8 billion shilling loan was approved in 2019 at an interest rate of 10 percent annually, the first disbursement was only made in mid-2020—several months into the COVID-19 lockdown, which had already crippled the entertainment and tourism sectors.
Despite the setbacks, Ndere went ahead with the projects the loan was meant to fund. These included the Obuntu Cuddle Resort in Bbira and the Obuntu Tourist Lodge near Lake Mutanda in Kisoro district, in addition to maintaining operations at the main Ndere Centre in Kigoowa, Nakawa Division, Kampala. All these properties are now at risk of being auctioned.
According to reports, Ndere initially made monthly repayments of 22 million shillings, which later increased to 30 million due to rising interest. In August, UDBL issued a notice of auction, which was temporarily suspended following what was believed to be a government commitment to intervene.
In its latest communication, UDBL confirmed that the bailout had not materialised and no settlement plan had been presented. The bank has now reiterated its intention to proceed with debt recovery.
“Despite the September 2024 commitment, the facility remains non-performing, with no concrete timelines communicated by the Ministry regarding the expected date of settlement,” the letter from UDBL reads. It further demands that Ndere submit a new debt settlement proposal “within seven (7) calendar days” from the date of the letter.
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