MAGOOLA RICHES EXPOSED! Bank Moves To Grab Dei Tycoon’s Properties Over Shs147.7bn Debt: 20-Acre Factory, Hospital, Wheat Plant, Mansions, Plazas On Auction List
Businessman Dr Mathias Magoola’s vast property empire has come under fresh pressure after a debt collection and auctioneering firm advertised a string of properties linked to his business interests for sale over outstanding bank loans.
The properties, ranging from a sprawling industrial establishment in Matugga, a hospital in Kitende, a wheat milling plant in Luzira, commercial buildings and residential establishments, have been listed for public auction or private treaty in a notice published in Thursday’s New Vision newspaper.
The notice, issued by Jald Uganda, a debt collection, collateral management and auctioneering firm, is titled Notice of Intended Sale by Public Auction/Private Treaty.
It warns Dei Industries International Limited, Dei Natural Products International Limited and their guarantors that the properties will be sold unless they settle outstanding loan balances, interest, fees and other disbursements.
The advertisement states that the sale is being undertaken on the instructions of a financial institution, although the creditor is not expressly named in the notice.
However, the development comes against the background of a protracted loan dispute involving Magoola’s business interests and Equity Bank Uganda and Equity Bank Kenya.
The financial stakes are enormous. In September 2026, New Vision reported that an independent audit had placed the companies’ disputed indebtedness at US$39.91 million, approximately Shs147.7 billion.
The Court of Appeal subsequently stayed proceedings in the underlying commercial case pending determination of an intended appeal by the companies challenging the audit process.
The latest auction notice now throws the spotlight on the extent of the properties exposed to the creditor recovery process and the financial troubles surrounding Magoola’s business empire.
THE PROPERTY EMPIRE ON THE AUCTION BLOCK
The advertisement lists properties registered under different companies and individuals associated with the business interests under scrutiny.
Some of the assets are substantial industrial investments, while others are commercial and residential developments.
Here is the breakdown:
MATUGGA: 20.673-ACRE FACTORY ESTABLISHMENT
One of the biggest properties advertised is an industrial establishment located at Matugga, covering approximately 20.673 acres.
The property is registered under Kyadondo Block 82, Plots 988, 3325 and 3326.
The registered owners/debtors are listed as Dei Industries International Limited, Dei Natural Products International Limited and Alok Kala.
The sprawling establishment is among the industrial properties now facing the prospect of disposal should the outstanding obligations remain unsettled.
KYAMULI-KUNGU: INDUSTRIAL PROPERTY
Another property listed belongs to Dei Natural Products International Limited and Mathias Magoola.
It is situated at Kyamuli-Kungu and comprises Kyadondo Block 82, Plots 3238, 4778 and 4779.
The advertisement identifies both the company and Magoola as registered proprietors.
LUZIRA: FULLY OPERATIONAL WHEAT MILLING PLANT
Perhaps one of the most notable assets on the list is a fully integrated and operational wheat milling plant along Sixth Link Road in Luzira, Kampala.
The advertisement identifies several land titles associated with the establishment, including:
- LRV 3899, Folio 8, Plot 2A, Sixth Link Road, Luzira.
- KCCA 205, Folio 23, Plot 4, Sixth Link Road, Luzira.
- LRV 3839, Folio 19, Plot 22A, Sixth Link Road, Luzira.
The property is registered in the name of Dei Industries International Limited.
Its inclusion means that an operational industrial facility, not merely undeveloped land, is among the assets advertised for disposal.
KATWE: COMMERCIAL PROPERTY
Dei Industries International Limited also has a commercial property listed at Katwe.
The property is identified as Kibuga Block 6, Plot 491.
MUYENGA-KISUGU: RESIDENTIAL ESTABLISHMENT
The auction notice also lists a residential establishment registered in the name of Mathias Magoola.
Located at Muyenga-Kisugu, the property measures approximately 0.247 acres and is registered under Kyadondo Block 244, Plot 1112.
This is particularly notable because it is registered in Magoola’s individual name rather than that of one of the companies.
KITENDE: HOSPITAL PROPERTY
Another major asset on the list is a property described as a hospital in Kitende.
Registered under Dei Industries International Limited, the property covers approximately 0.457 acres and is identified as Busiro Block 383, Plots 5641 and 5642.
The inclusion of a healthcare establishment adds another dimension to the range of assets exposed to the proposed recovery process.
SEGUKU: COMMERCIAL PROPERTY
The notice further lists a commercial property at Seguku, registered in the name of Rutungu Investments.
Located at Kyadondo Block 266, Plot 149, the property measures approximately 0.10 acres.
The advert features photographs of several buildings and developments associated with the listed properties.
30 DAYS TO SALE, OCCUPANTS GIVEN 14 DAYS
Jald Uganda has indicated that the sale will take place 30 days after publication of the advertisement.
The auction or private treaty process will be conducted at the firm’s offices, beginning at 10:00am or soon thereafter.
The stated terms of sale are cash, bank draft or Real-Time Gross Settlement (RTGS).
In another significant provision, the notice directs occupants of the properties to vacate within 14 days to enable prospective buyers to inspect the premises.
The notice, however, gives the affected companies and guarantors an opportunity to settle the outstanding loan balances, interest, fees and disbursements before the sale.
SHS723.4BN TAXPAYERS’ MONEY QUESTION
The latest development is particularly sensitive because it comes after Government committed a cumulative Shs723.4 billion towards Dei BioPharma, a pharmaceutical manufacturing enterprise associated with Magoola.
The Government commitment comprised Shs70 billion appropriated in the 2023/2024 financial year, another Shs75 billion added in December 2023 and Shs578.4 billion approved through a supplementary budget.
The Shs578.4 billion allocation was intended, among other things, to support the company’s financial obligations and operational requirements.
The massive public investment was justified on the grounds that Uganda needed to establish a local pharmaceutical manufacturing industry, reduce dependence on imported medicines, create jobs and strengthen national medicine security.
However, the subsequent banking dispute has raised questions about whether the intended financial obligations were fully addressed.
In the loan litigation, Equity Bank Uganda and Equity Bank Kenya were reported to have claimed that the companies had outstanding obligations arising from credit facilities obtained between 2016 and 2021.
The companies, on the other hand, challenged the loan calculations, arguing that excessive interest and other charges had inflated the amounts claimed by the banks.
The companies sought an independent audit and reconciliation of their accounts.
An audit report by Clayton & Co, dated June 28, 2025, put the disputed indebtedness at US$39.91 million, equivalent to approximately Shs147.7 billion.
The companies challenged the audit process and the Commercial Court dismissed their application in July 2026.
They subsequently moved to the Court of Appeal, where Justice Florence Nakachwa ordered a stay of proceedings in the main commercial case pending determination of their intended appeal.
The judge’s decision did not determine the final amount owed or extinguish the underlying loan obligations.
The latest auction advertisement therefore comes as the parties remain embroiled in a dispute over the financial obligations.
MAGOOLA’S EMPIRE UNDER SPOTLIGHT
The latest property listings raise fresh questions about the financial health of the wider business interests associated with Magoola.
The entrepreneur’s pharmaceutical ambitions attracted extraordinary Government support, with Dei BioPharma promoted as a major project that would transform Uganda’s pharmaceutical manufacturing capacity.
But the advertised properties reveal a much wider portfolio of business interests, extending beyond pharmaceutical manufacturing into wheat processing, healthcare, commercial real estate and residential property.
The biggest question now is what happens to the Government’s investment if assets connected to the wider business interests are sold to recover outstanding commercial debts.
There are also questions about whether any of the public funds injected into the project were used to settle the outstanding bank facilities and what security arrangements Government put in place to protect taxpayers.
The Auditor General had previously raised accountability concerns over the Government’s investment, including the absence of documentation establishing the company’s valuation and the Government’s shareholding arrangements.
The Shs723.4 billion investment and the latest auction notice have consequently placed the business empire under renewed scrutiny.
For now, the auctioneer’s notice offers the affected parties an opportunity to settle the outstanding obligations before the advertised sale.
But with a 20-acre industrial establishment, an operational wheat milling plant, a hospital, commercial properties and residential assets on the list, the stakes are high.
The big question is whether Magoola can resolve the outstanding financial obligations before the auctioneer moves to dispose of the properties.
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