Eng. Kenneth Kaijuka, Chief Executive Officer of NHCCBy Prisca WanyenyaParliament has learnt that National Housing and Construction Company Limited (NHCC) is operating on a High Court order due to complications in dealing with the 49% shares held by Libya, following UN sanctions that bar Uganda from transacting with Libya.The revelation was made by Eng. Kenneth Kaijuka, Chief Executive Officer of NHCC, while appearing before the Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) on October 8, 2026, during consideration of the December 2025 Auditor General’s report.“With the challenges that ensued soon after the government of Libya got in trouble about 2010/2011, we had constraints in identifying the other shareholder and who represents the interests in the company. So, we went to court and court gave us permission to operate as a single shareholder but preserve the interest of the other shareholder until such a time when such matters have been resolved,” Kaijuka said.“We are happy that over the years we have moved the company from a loss-making entity, even amidst the constraints of not getting government capitalisation or budgets to do business,” he added.In 2005, Uganda and Libya signed a shareholders agreement that gave Libya 49% shares held through the Minister of State Investment via a debt swap. Uganda owed Libya US$20.3 million, about Shs35 billion at the time, which was converted into shares. The funds did not go to National Housing directly – it was a paper transaction where Libya took shares in the company on strength of money it had previously lent to central government. Uganda retained 51%.COSASE Chairperson Muwada Nkunyingi (Kyadondo East) tasked NHCC on how it handles dividends due to Libya to avoid future litigation when sanctions are lifted.“What happens to the percentage that ought to be remitted to the government of Libya? We don’t want a situation where after years they are going to sue either National Housing or government of Uganda for wrongfully taking over or wrongfully holding on to dividends that are due for the second shareholder. How do you handle the aspect of dividends?” Muwada asked.Kaijuka said dividends due to Libya are ploughed back into the business and there is a paper trail on how the interests are being managed until sanctions are lifted.“You need to appreciate that the shareholder called Government of Libya is a sanctioned state under the global statutes, UN, and accordingly, you cannot undertake any financial transactions with such a shareholder. So, when we declare dividends under a single shareholder annual general meeting, then we also further request that we retain the profitability, because then even if we had one shilling to pay, the International Covenants bar us from making that transfer. So, we plead with the shareholder to plough it into the business,” he explained.Muwada admitted that sanctions prevent transactions with Libya, but argued that for accounting purposes, entities under sanctions must have their financial interests clearly computed and protected.“So globally, this money and their interest are normally held by a party holding it. From you as National Housing, you have not demonstrated how you are holding and making clear computation of this particular interest. Because at a particular time T, who knows what the legal implication of any money will be held so far and the accrued interest. It will create a jeopardy for Uganda if the sanctions are lifted and they are given access to their funds globally. How would you account for these funds when you don’t have a clear chronology?” Muwada asked.Emma Wangota, Company Secretary of NHCC, told the Committee that the court order allowing National Housing to operate as a single shareholder was issued on June 30, 2022. The High Court allowed NHCC to hold meetings without the second shareholder and authorised the Board to carry on business in the best interest of the company until representatives of the Libyan African Foreign Investment Company are able and allowed to attend.Prior to the court order, the Attorney General had on September 30, 2021 advised that Uganda should compulsorily acquire the 49% shareholding owned by LAFICO. He recommended a fair market valuation as compensation, with the amount held by government until rightful payment to LAFICO could be determined.Muwada asked NHCC where it got powers to plough dividends back into the business contrary to the Attorney General’s guidance.“I don’t see any provision to do with their interests because the Chief Executive is saying that you are using it and ploughing it back, but the law doesn’t suspend computation of shareholders’ interests. I believe if it is the question of remittance, we are trying to answer it using the sanctions. Yes, we may agree, but from the direct interpretation of what you are reading, the Attorney General was advising on a process yet to be undertaken which involved a proposal for compulsory acquisition. And I want to believe by now, government hasn’t compulsorily acquired those shares and has not paid for them,” Muwada noted.“Now, in the circumstances, you cannot say that now there would be dividends that are due to Libya disappear or are necessarily ploughed back. Chief Executive, we need to understand what informed your mind to say that once you acquire, you get profits, you necessarily plough it back into your operations. What if at one time, also Libya now goes to court demanding for its due interest? And it is not kept anywhere. It is not computed anywhere,” he added.Kaijuka said the Attorney General’s guidance was a five-page document that came after the shareholder, who is the Minister of Finance, raised questions on how to manage the business and relate with an absentee shareholder who cannot be traced.On computation of Libya’s dividends, Kaijuka said NHCC is audited directly by the Auditor General and Libya’s dividends are recognised in the accounts.“When a dividend or a profit is realised, Libya’s dividends are part and parcel in the equation of the shareholding, the 51 and 49 percent,” he said.The post National Housing Running on Court Order as UN Sanctions Block Libya Dividends appeared first on Business Focus.