KAMPALA – Financial institutions have ceased granting loans to lawmakers whose election victories are actively being challenged in court, fearing that a court nullification could turn multi-billion shilling loans into bad debt.
Thank you for reading this post, don't forget to subscribe!A long list of about 100 MPs from the 12th Parliament, including several high-profile ministers, has been secretly blacklisted by commercial banks amid a dramatic financial fallout from the disputed January 2026 general elections.
The move follows the highly contested January 2026 polls, in which a record 107 electoral petitions were filed at the High Court, placing nearly a quarter of parliamentary seats under a legal cloud.
Banking insiders reveal the new blacklist is a direct response to past financial losses from newly elected MPs.
Traditionally, lawmakers rush to borrow large sums after elections for personal expenses, campaign debt, cars, or mortgages, using their anticipated five-year salaries as implicit collateral.
When a court nullifies an election, banks are left holding the debt while the MP leaves Parliament, loses their salary, and effectively disappears, making recovery extremely difficult.
“These members come with big appetites. They want mortgages, car loans, and business capital, all based on a five-year term. When a petition succeeds and the court nullifies their election, banks are left holding the debt,” a senior credit officer stated.
High-Stakes Legal Battles
Among those reportedly affected are several ministers-designate whose seats are under siege.
· Mawogola North: Godfrey Aine Kaguta’s victory is being challenged by Jet Tumwebaze.
· Kinkizi East: Health minister-designate Dr. Chris Baryomunsi faces a petition from Sam Kajjo Arinaitwe.
· Kampala Central: In a major political upset, National Unity Platform (NUP) Secretary General David Lewis Lubongoya has petitioned the court to overturn the victory of Kampala minister-designate Minsa Kabanda Nabbengo.
· Mawogola South: NUP’s Gerreth Namugga is challenging the election of Dez Oswald Byuma.
· Kalungu East: Former Defence Minister Vincent Ssempijja has petitioned against Yusuf Nkerentanyi, alleging electoral irregularities.
· Nakawa East: Alex Waiswa Mufumbiro, the detained deputy NUP spokesperson, is fighting to nullify the win of former Deputy Attorney General Frederick Ruhindi.
· Kinkizi West: Former counter-terrorism police chief John Ndungutse Ngaruye is challenging James Niringiyimana Rwogi Kaburuka.
The Legal Timetable
The blacklist is expected to remain in place for at least the next six months. Judiciary Spokesperson James Ereemye recently outlined that the High Court has a strict mandate to conclude all election petitions within six months after hearings commence.
The process begins with the filing of petitions, followed by a 15-day pleading period from the publication of results in the Uganda Gazette. Principal Judge Justice Frances Abodo will now assign judicial officers to hear the cases.
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