The High Court Commercial Division in Kampala has resolved a vehicle lease dispute by ordering businessman Andrew Kananura to pay Shs140,887,000 to Vehicle and Equipment Leasing (U) Ltd. The judgment, delivered by Justice Stephen Mubiru on Monday, February 2, 2026, ended a complex case involving unpaid vehicle purchases and contested parking fees.
The conflict began in April 2019. At that time, Vehicle and Equipment Leasing (U) Ltd leased part of Plot 20–30 Sadler Way in Naguru from Kananura. He operated Panamera Bar and Restaurant on the same premises. The company used the space as a parking yard for imported vehicles awaiting sale.
Between 2019 and 2020, Kananura acquired five vehicles from the company. These included a Toyota Hilux, a Nissan Hard Body pick-up, two Toyota Land Cruisers, and a Volkswagen Amarok. The plaintiff claimed he failed to pay Shs255 million for these vehicles. Kananura denied owing money and filed a counterclaim for Shs284.3 million in unpaid parking fees.
Justice Mubiru first examined whether the debts were clear enough for legal set-off. He found that three vehicle sales had signed agreements, which Kananura admitted. But two vehicles—the Toyota Land Cruiser UAZ 468 E and the Volkswagen Amarok UAW 554 F—lacked written contracts.
Kananura initially denied buying these two vehicles during his testimony. Later, under cross-examination, he admitted taking possession of them. The judge said this contradiction hurt his credibility.
The court applied the doctrine of quasi-contract. This principle prevents unjust enrichment when someone receives goods without paying. Since Kananura kept the vehicles but didn’t settle full payment, the court awarded the company the reasonable market value. It accepted Shs125 million for the Land Cruiser and Shs65 million for the Amarok. After deducting partial payments, the total debt for the vehicles stood at Shs255 million.
On the counterclaim, the judge found merit in part of Kananura’s argument. The company had agreed to pay daily parking fees but failed to keep complete records. Because it could not produce full documentation, the court drew an adverse inference against it. This led to a finding that the plaintiff owed Shs114,113,000 in parking charges.
After set-off, the net amount Kananura must pay is Shs140,887,000. The court also awarded interest at 20% per annum from October 14, 2020—the date the suit was filed—until full payment. Justice Mubiru said this compensates the company for losing use of its money during the long legal battle.
Kananura must also cover the plaintiff’s legal costs.
This ruling clarifies how Ugandan courts handle vehicle lease dispute cases involving mixed claims. It shows that even without formal contracts, parties can be held liable under quasi-contract if they benefit unfairly. It also underscores the importance of keeping accurate business records. Failure to do so can lead to adverse inferences that weaken a party’s position.
The judgment reinforces that mutual debts can be offset, but only when both claims are properly proven. In this vehicle lease dispute, detailed evidence and consistent testimony made the difference.
For businesses operating in shared or leased spaces, the case serves as a reminder: document every transaction. Whether it’s a vehicle sale or a parking agreement, clarity protects all parties.
As commercial activity grows in Uganda, such rulings help define fair practice in informal and formal deals alike. This vehicle lease dispute sets a practical example of how courts balance equity, evidence, and accountability in business conflicts.
