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Church House In Sh48b Debt

Church House

By Allan Saba | Xclusive Reporter

Reports coming Indicate how the Church of Uganda is in crisis talks after it emerged that its multi-billion Church House building on Kampala Road is at risk of being auctioned over sh48b unpaid debt.

According to reports from sources indicate that the church negotiated with the bank for more time so that they could engage the Government for compensation in order to clear the loan arrears.

Reliable sources say Equity Bank, which extended a sh41b loan ($10m and another sh5b) towards construction of the 16-storeyed building, is demanding about sh40b. The remaining sh8b is owed to other entities/individuals.

During the COVID-19 outbreak, according to sources, the Church asked Equity Bank for a one-year moratorium as they look for funds.

We have so far learnt that the church has launched a fundraising drive to look for money to pay off the debt. The church, according to sources, is also banking on recovering the money it is owed by the Government as compensation for its land in Entebbe.

The fundraising drive, the source added, is to be spearheaded by former prime minister Amama Mbabazi and it targets all Anglicans in the 37 dioceses in the country (32% of Ugandans or over 10 million people as per the 2014 population census).

 

According to the source, the Anglicans will be urged to contribute money as a way of marking the church’s 60 years of self-governance.
Several dioceses acquired shares in Church House to ensure steady income for their development. The shareholding ranges from sh5m to sh3b. Shareholder dioceses include Kampala, Bukedi, Mukono, Kigezi and Rwenzori, among others, the source revealed.

President Yoweri Museveni contributed sh300m to the project at the time the late Livingstone Nkoyooyo was the archbishop of the Church of Uganda.
However, since the money was inadequate, the church acquired a loan from Equity

 

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