Eng. Kenneth Kaijuka, Chief Executive Officer of NHCCBy Prisca WanyenyaThe National Housing and Construction Company (NHCC) has asked government to buy out the 49% shares owned by the Libyan Government in NHCC, arguing that the 2011 United Nations sanctions imposed on Libya have tainted the company’s image and made it undesirable for investment.The request was made by Eng. Kenneth Kaijuka, Chief Executive Officer of NHCC, while appearing before Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) on October 8, 2026, during consideration of the December 2025 Auditor General’s report.Kaijuka noted: “Even before you go to listing, there are so many people willing to partner in housing. An entity comes from United Kingdom and when they arrive here, because they find you have a sanctioned shareholding, they just simply ignore you. We have some pockets of land where this involvement can happen, but partners will not come, the banks will not touch you. Why can’t we clean up this and we attract these investments through our service?”The remarks were in response to a question raised by Julius Nakiyi (Budadiri East) who wondered if NHCC has considered listing on the Uganda Stock Exchange to raise capital, after the company decried high cost of credit from commercial banks.Nakiyi noted: “Of course, countries don’t die. I think states don’t die. So, at any time, the Libyan people will claim their investment in Uganda. Now, for National Housing, I think it was started as a limited company because they wanted to compete in the market so that they don’t strain Government, but to participate in that sector. So, they are supposed to operate like any other self-sustaining entity. Because I see you always need money for projects, have you considered listing this company on the stock exchange so that you can raise money from the public?”Kaijuka asked Parliament to support NHCC in repossessing the shares urgently, saying current sanctions against Libya have caged NHCC, barring it from receiving recapitalisation or even sending dividends to Libya.He explained: “You cannot list when you are sanctioned. We even have tried to see, how can we remove the presence on our books of accounts, but we cannot find a window now to strike them off the books. So, whoever picks your books and going to partner with you says, but you still have this dent. Our prayer is that the repossession of the 49% share is a solid request. The President said a committee be created, let the two governments meet. If this process can be exhausted, we will be happy to get on the listing. You will have people like National Social Security Fund (NSSF) willing to put in money in that respect.”It should be recalled that between 1974 and 1986, government borrowed up to US$183 million and following negotiations, interest was cancelled, and the quantum that remained was US$95 million, prompting government to transfer the debt into entities, with National Housing taking on a US$25.3 million loan. This prompted Uganda to sign a debt swap with Libya, awarding the North African nation 49% shares in National Housing.Parliament was further informed that at the last annual general meeting, a decision was taken that since the shares came from a loan acquired by government and this money did not come to National Housing directly to activate business, and therefore even when they make claims, they cannot make claims where they didn’t invest, the AGM called for the government loan to be retracted to ease pressure on NHCC.“So, this request has been made to the Minister of Finance that government lifts this burden, they take it up and manage it. These submissions have been done and so, all claims will have to go to central government, and letters have been submitted to Ministry of Finance and the Attorney General, Solicitor General,” Kaijuka remarked.Hakim Kizza Sawula (Bukoto South County) sought clarification on whether sanctions imposed on Libya have channels through which Uganda can pay dividends until sanctions are lifted.“I think, when there are sanctions, there must be some conditions attached to these sanctions. Normally, when such sanctions are restricted to such countries, there is somehow they put a channel where that money can be remitted to the country. I normally hear that we have blocked this account but the money will be channelled to your country. Could you be knowing some conditions of these sanctions, because, at any time, Libya will claim for its shares, it will claim for its profits by all means,” Kizza noted.Kaijuka explained that the sanctions have two elements that bar NHCC from receiving or sending any money to Libya, which is why the company agreed to plough back Libya’s dividends into the business until sanctions are lifted.He said: “We can neither receive money from them, even if they had it. If today they sought to capitalise us, that money cannot come into the company, neither can we be seen to pay. Proposals are on table, there is Tropical Bank here, which is 99% Libyan bank, these monies can be held there, they help capitalise the bank. When they hold the money, they can be trading with it, but we also know that at a time X, these funds are held there for the Libyan interest.”Kaijuka also revealed that another channel through which Libya’s dividends can be held is at Bank of Uganda in an instrument that is interest-generating, for when they come, and these two options can be carried out without money leaving Uganda.Parliament was also shocked to learn that four companies, including one owned by former MP Muyanja Mbabali, have written to National Housing placing a claim on Libyan Government dividends from NHCC, on pretext that they are representing the Libyan Government, despite some of these companies having no direct links to Libya at the time shares were allocated in 2005.Mbabali, through his company Southern Investments Limited, is said to have acted as a broker or transaction advisor, but by the time sanctions were imposed, some fees hadn’t been cleared by the company that had hired Mbabali on behalf of Libya, prompting the former MP to run to court. Court issued a ruling asking Mbabali’s company to go and correct its pay from the company where they have businesses.However, Mbabali’s claims were rejected by National Housing, with Kaijuka remarking: “We find it extremely unfair. It is not appropriate; we cannot be appropriating funds of this nature.”During the interface, MPs led by Gerald Nangoli (Elgon North) questioned authenticity of NHCC’s financial reports after details indicated company profits rose from Shs3.212Bn in 2024 to Shs79Bn in 2025.Nangoli asked: “My question is how much was the fair value on the investment property versus the actual sales and rent? If at all you made the Shs79.1Bn, as indicated in your books of accounts, then how do you fail to pay your suppliers that are demanding you Shs56.4 billion, because it is indicated, the trade pay was almost doubled. The tax pay was flat in 2024 and 2025 at Shs2.638Bn, despite the fact that the profit jumped from Shs3.2 to Shs79, the magic used are fair values that fair value gains. Are they non-taxable? You need to explain to the committee.”Nakiyi informed fellow legislators that the rise in company profits from Shs3.2 billion to Shs79.1Bn in one year was because of a board decision.He argued: “They had an estate called Rwizi and the others. I think they were supposed to sell them, because when you build to sell, you hold it as stock. So, they are getting a standard called IAS-2 which controls how you account for stock. They said no, this is no longer stock, we call it investment property, meaning they are not going to sell the property. So, by doing that decision in the board meeting, they were forced to revalue this, to move it from stock to investment property. And that caused an increment of Shs104Bn. If we go to your report and we remove that Shs104 billion, you would actually be in a loss of Shs25 billion.”COSASE Chairperson Muwada Nkunyingi asked National Housing to explain failure to remit NSSF contributions for staff amounting to Shs216.883 million, noting: “Now, you deny these staff the benefit of getting their interest. We heard recently NSSF even paid the interest, are you going to pay for the staff on behalf of NSSF since you never remitted? What happens?”Kaijuka informed the Committee that NHCC is now up to date with NSSF remittances, admitting unpaid remittances had accumulated in past years but the company has made progressive growth and arrears have since been cleared.The post NHCC Asks Govt to Repossess 49% Libyan Shares, Says Sanctions Scaring Investors appeared first on Business Focus.