BIG STORY: Multiple Industries on the Brink Over Shs 21bn StanChart Loan
BIG STORY: Multiple Industries on the Brink Over Shs 21bn StanChart Loan
Multiple Industries Limited, a leading maker and trader of building materials in Uganda since 1991, now faces the prospect of property foreclosure unless it settles a staggering Shs 21.7 billion debt owed to Standard Chartered Bank Uganda.
The High Court’s Commercial Division has granted the company breathing room, issuing an interim injunction that halts the bank’s recovery actions pending resolution of a deeper legal dispute.
Debt Details & Company Defense
Multiple Industries had taken several loans from StanChart, including a term loan of about USD 499,300 (~Shs 1.9 billion), a USD 5 million import facility (~Shs 19 billion), and overdrafts totalling around Shs 3.35 billion plus a USD 300,000 overdraft (~Shs 1.14 billion).
The company claims that a consent judgment in February 2024 agreed to restructure the debt, but alleges the bank later violated that agreement—undermining its ability to attract refinancing and harming its credit rating through allegedly false reporting to the Credit Reference Bureau.
Bank Says Company Defaulted
Standard Chartered maintains that the loans were defaulted on, and that the company repeatedly acknowledged its obligations. The bank says it granted extensions up to July 31, 2025 to allow time for alternative funding arrangements.
Court Intervenes
Justice Simon Peter M. Kinobe ruled that foreclosure before a final ruling would defeat the purpose of Multiple Industries’ legal challenge. “If execution is allowed to proceed, the substantive application will be rendered nugatory,” he said, preserving the status quo until the case can be heard.
The court has scheduled the full hearing for October 13, 2025, with both parties required to submit written briefs ahead of time.
Trouble for Multiple Industries comes amid a broader credit crunch in Uganda, where rising rates and government borrowing are squeezing private sector access to funds. Many companies are struggling with debts in the tens of billions, prompting calls for stronger lending regulations and possible intervention. 1
