Cedric Babu condominium is at the center of a High Court ruling that has temporarily stopped Kenya Commercial Bank Uganda from selling the late businessman’s luxury home in Kololo. The decision offers relief to his widow and three children as the court prepares to hear the main case.
The High Court in Kampala granted a temporary injunction blocking KCB from advertising, auctioning, or foreclosing on the property. The ruling ensures that the Cedric Babu condominium remains protected while the legal dispute unfolds.
Court Blocks Sale of Cedric Babu Condominium
Assistant Registrar Her Worship Mulondo Mastula issued the order on February 23, 2026. The injunction restrains the bank, its agents, and auctioneers from taking any steps to dispose of Condominium Unit No. 2 on LRV KCCA 119/19 at Plot 1, Fumu Lane in Kololo.
The property serves as the family home for Babu’s widow and their three sons. The court emphasized that eviction would cause harm that cannot easily be measured in financial terms.
In its ruling, the court stated that eviction of a spouse and dependent children goes beyond the property’s market value. It described such harm as irreparable and unsuitable for simple compensation through damages.
Mortgage Dispute Behind Cedric Babu Condominium Case
The dispute stems from a $200,000 mortgage facility obtained in July 2023 from KCB Bank Uganda Limited. According to the bank, the loan is in default, with approximately $182,710 outstanding, including interest.
However, the estate argues that the loan was covered by a Group Mortgage Protection Policy. The family maintains that this policy should have cleared the balance following Babu’s death in May 2025.
At the heart of the case is Clause 7.17 of the facility agreement. The clause requires all insurance renewals to be placed through KCB Bancassurance. It further states that if the borrower fails to renew the policy in time, the bank shall automatically renew it at the borrower’s cost.
The court found that this wording raises serious questions. According to the ruling, the clause appears to require the bank to ensure continuous insurance cover, even if the borrower failed to pay premiums.
Bank and Estate Present Competing Interpretations
KCB argued that responsibility for renewing the insurance rested solely with the borrower. The bank claimed the policy lapsed in August 2024 due to non-payment of premiums.
However, the court determined that the competing interpretations of the contract require full examination at trial. At this preliminary stage, the evidence presented was sufficient to justify maintaining the status quo.
The court also rejected the bank’s argument that the family should deposit 30% of the outstanding loan before seeking to block the sale. Under Mortgage Regulations, such a deposit can be required in certain cases.
Yet the court exercised its discretion, noting that the second applicant is the widow of the deceased mortgagor. It concluded that this was not an appropriate case to compel payment of 30% of the forced sale value or outstanding amount as a condition for hearing the application.
What Happens Next for Cedric Babu Condominium
While granting the injunction, the court directed the family to maintain the property and avoid any actions that could prejudice the bank’s security. Costs of the application will be determined in the main suit.
For now, the Cedric Babu condominium remains shielded from foreclosure. The substantive hearing will determine whether KCB breached its obligations regarding renewal of the mortgage protection insurance policy.
The outcome of the case could have wider implications for mortgage agreements in Uganda, particularly where insurance clauses place renewal responsibilities on financial institutions.
As the legal battle continues, the Kololo home stands as both a family residence and a test case for contractual interpretation in Uganda’s property and banking sector.
