The ministry of Finance, Planning and Economic Development has denied claims that it committed to bailing out the Ndere Cultural Centre from its growing debt burden, which now threatens the existence of one of Uganda’s most iconic cultural institutions.
This denial comes despite confirmation by Uganda Development Bank (UDB) that the government had, in 2024, pledged to settle Ndere’s now Shs 10.8 billion debt.
Established in 1984 as a cultural performance group (Ndere Troupe), the Centre has evolved into Uganda’s leading cultural tourism, conservation, and promotion hub, with various projects and facilities spread across the country.
In 2019, Ndere secured a Shs 6.8 billion loan from Uganda Development Bank Limited (UDBL) to expand its operations. However, the Centre has since failed to repay the loan, prompting UDB to issue a seven-day notice ending today, Monday, July 7, demanding a satisfactory repayment plan or risk auctioning off the assets.
In September 2024, after an earlier auction notice, Ndere’s founder and executive director, Stephen Rwangyezi, led an appeal to the government for intervention. President Yoweri Museveni reportedly responded by instructing the ministry of Finance to bail out the Centre.
Following a high-level meeting at the Office of the Prime Minister (OPM), it was reported that the government agreed to purchase shares in Ndere as a way of clearing the Shs 4.6 billion loan by then ballooned to Shs 10.8 billion due to interest accrued during the COVID-19 lockdown.
On September 25, 2024, Ndere publicly announced what it called “good news,” claiming the government had agreed to rescue the Centre through an equity acquisition. Nine months later, however, UDBL announced its intention to auction Ndere’s properties, citing failure to repay the loan.
The ministry of Finance, meanwhile, has denied ever making a formal commitment to bail out the cultural institution. Efforts to reach Rwangyezi for comment were unsuccessful, while Pastor Martin Ssempa, who has led a public campaign to save Ndere, declined to answer calls.
How it began
In 2019, Ndere Centre based in Ntinda-Kigoowa, Nakawa Division, Kampala successfully applied for a Shs 6.8 billion loan from UDBL at a 10% annual interest rate to support its expansion.
However, the funds were only disbursed in mid-2020, months after Uganda went into a nationwide COVID-19 lockdown that halted tourism and banned entertainment activities. Despite the challenging environment, the Centre proceeded with projects funded by the loan, including Obuntu Cuddle Resort in Bbira along Mutungo Road and Obuntu Tourist Lodge near Lake Mutanda in Kisoro district.
All these properties along with the flagship Ndere Centre are now facing auction. According to Ssempa, Ndere was initially servicing the loan with monthly payments of Shs 22 million, but that amount later increased to Shs 30 million due to compounded interest, which significantly inflated the principal.
In August 2023, UDB notified Ndere of its intention to auction the properties. A campaign by supporters of the Centre temporarily halted the process, with reports that the government had pledged to intervene.
However, in its latest communication, UDBL states that no progress has been made regarding the bailout and that Ndere has not submitted any clear repayment plan. The bank now insists that unless a new proposal is submitted within seven days, it will proceed with auctioning the assets.
“Despite the September 2024 commitment, the facility remains non-performing, with no concrete timelines communicated by the ministry regarding the expected date of settlement,” the letter reads in part.
