Biyinzika poultry business collapses over bank loan

An advertisement that ran in one of the Ugandan daily newspapers indicated that the business’s properties that are going to be auctioned by the bank should it fail to pay include: 41 acres of land in Kasambya with hatcheries that have a capacity of 460,000 chicks per week, 100 acres of land in Bulemezi, and Dina Apartments in Ntinda.

 "Duly requested by our client, the registered mortgage, a financial institution, we do hereby give notice of the intention to sell the land and developments described below to realise money due to the mortgagee, unless the debtor (Biyinzika) shall pay the monies due to the mortgage together with the associated fees and costs of recovery before the date of sale (30 days after the advertisement)," the advertisement by Tumusiime, Kabega & Co. Advocates in one of the dailies read.

The company has been instrumental in Uganda’s agri-business sector, having controlled, at one time, at least 65% of the market share.

Pulse Uganda has learned that the business is valued at over Sh40 billion and has been employing over 10,000 people who are set to lose their jobs should the business eventually collapse.

It is not yet clear what amount of money Biyizinka owes.

Some Ugandan businesses have been struggling ever since the end of the COVID-19 pandemic, which grossly affected the economic performance of Uganda’s economy. Experts say what is happening now to some Ugandan businesses is the aftermath of that two-year period.