Cedric Babu (L) is seen with the First Son, Gen. Muhoozi Kainerugaba at an earlier event before his death in May 31, 2025
HABARI DAILY I Kampala, Uganda I In 21 days, the apartment that was mortgaged to the late Cedric Ndilima Babu will go on sale. Until his sudden illness in April 2025, Cedric was servicing his mortgage like thousands of other Ugandans, relying on the assurance that his life insurance policy would protect his family if tragedy struck.
Two years earlier, on July 14, 2023, Cedric had secured a $200,000 mortgage from KCB Bank Uganda Limited to purchase the Kololo condominium. Like most mortgage facilities, the loan required a Group Mortgage Protection Policy — a life insurance cover designed to clear the outstanding debt if the borrower dies, ensuring the family retains the home.
But following Cedric’s death on May 31, 2025, KCB Bank informed the family that the insurance policy had lapsed in August 2024 due to non-payment of renewal premiums. In its court affidavit, the bank insists that the “primary obligation to take out, maintain and renew the Group Mortgage Protection Policy rested solely with the deceased,” adding that “as a direct consequence of this non-payment of premiums, the policy lapsed.”
By the time Cedric fell ill, the bank argues, there was no active cover.
Family’s position
The family disputes this position, citing provisions within the loan agreement that, they say, allowed the bank to automatically renew the insurance policy at the borrower’s cost if it was not renewed in time. They argue that KCB acted as an insurance intermediary — collecting premiums, handling documentation, and managing renewals — and therefore bore a duty to ensure continuity of cover.
Through their lawyer, Justinian Kateera, the family engaged the bank in an attempt to resolve the matter amicably. “Following the failure to agree on terms and conditions for coverage of the policy, we referred the matter to court,” Kateera says. Shortly afterward, the family received notice that the bank intended to offer the home for sale within 21 days, pending the outcome of the case.
For a financial institution, 21 days is a procedural timeline. For a grieving family, it is a devastating countdown.
KCB defiant
KCB maintains that foreclosure is lawful where a loan is in default, and that loss of mortgaged property is a foreseeable consequence when contractual obligations are not met. But the family contends this is not a straightforward default. Instead, they argue, this case revolves around an insurance policy that was specifically designed to prevent exactly this outcome — the sale of a family home following the borrower’s death.
They say Cedric paid all his monthly obligations under the mortgage and complied with the conditions required at the time the loan was granted. For that matter, they rushed to court and opened a civil case against KCB.
“Cedric had a life insurance policy, which was the pre-condition for the extension of the mortgage to buy his home,” the family states. In their view, the question before court is not simply whether premiums were paid, but whether the bank fulfilled its role in safeguarding the policy’s continuity.
The bigger picture
Beyond one household, the case has broader implications. In Uganda, thousands of mortgage loans are bundled with life insurance policies, and borrowers commonly assume their families will be protected if tragedy occurs. The outcome of this case may clarify who bears responsibility when that protection fails — the borrower, or the bank acting as intermediary.
As legal arguments unfold at the Commercial Division of the High Court, Cedric’s family has made a final, emotional appeal. “Cedric would have wanted us to do this, and we are confident of the justice of this cause. For the sake of the children, we humbly request that all comments are made in a manner that is private, sensitive and respectful.”
For now, behind the quiet gates of Kololo, a family waits — not just for a legal decision, but for reassurance that a home meant to be protected will not be lost.
About the Author
