A Shs40 billion land deal scandal has triggered a police investigation in Uganda, linked to the late businessman Dr. James Musinguzi Garuga. The controversy centers on a 296.74-hectare estate on Kome Island, registered in Garuga's name, which was leased to a British-linked company for 99 years. The deal, valued at over $3.2 million, has raised questions about the validity of the lease and the ownership of the estate.
Police have summoned five individuals, including city lawyer Agaba Maguru and Widow Peace Kesiime Bagorogoza, to explain their roles in the disputed dealings. The investigation follows a complaint by Musinguzi Carl Alwyn Garuga, the deceased's son, who reported that Mani Stephen was unlawfully registered as proprietor of the land before leasing it to Erunger Property Limited. The five individuals have been directed to report to the Land Police Protection Unit in Makindye on October 30, 2026.
The land, identified as Block 516, Plot 12, is situated at Busanga, Kome Island, Kyaggwe County, Mukono District. Records reveal a lease agreement between Mani Stephen, identified as the lessor, and Erunger Property Limited, a company whose address is given as 40 Don Street, St Helier, Jersey, JE2 4TR. Erunger is also a company in Entebbe dealing in fuel business and is owned by British nationals.
The lease agreement, prepared by Agaba Maguru's law firm, grants Erunger Property Limited a 99-year lease commencing on December 17, 2024, with a stated premium of $3,298,365. The annual ground rent is listed at just $135, which the agreement says would not be revised during the lease term. Clause (a) of the agreement provides that the premium and ground rent for the 99-year period would be paid in a lump sum.
Alwyn Garuga alleges that his father's land was sold behind his back by Kesiime and Agaba Maguru, and believes this case involving huge millions of dollars could be the reason why Dr. James Garuga may have lost his life under unclear circumstances. In January 2025, Dr. James Garuga discovered Maguru and Kesiime's suspicious transactions on his land and put pressure on Maguru to confirm that the land belonged to himself.
Alwyn Garuga also questions how Mani Stephen, who was not close to his father, came to lease the land for $3.2 million to British nationals for 99 years. He maintains that there is no evidence that the said money was paid by Erunger Property Company to Mani Stephen and his group. The land, fully planted with pine trees, is estimated at about Shs 40 billion.
Alwyn Garuga has also accused his brother Johnny Nobert Musinguzi and another official from the anti-corruption court of calling and threatening investigating officers to stay away from investigating the case. Peace Kesiime Bagorogoza's statement was recorded at police on Friday, October 30, 2026. The police are set to scrutinize the circumstances under which the lease was prepared, executed, and presented for registration by Agaba Maguru and Mani Stephen.
Key points
- The police investigation into the Shs40 billion land deal scandal involves a 296.74-hectare estate on Kome Island linked to the late businessman Dr. James Musinguzi Garuga.
- The controversy centers on a lease agreement between Mani Stephen and Erunger Property Limited, a British-linked company, for 99 years.
- The deal has raised questions about the validity of the lease and the ownership of the estate, with allegations of conspiracy and suspicious transactions.
