Shumuk targets Shs 3bn investment in modern car bond

Businessman Shukla Mukesh, CEO of Shumuk Group has announced plans to invest Shs 3 billion in a modern in-land car depot and related developments at the newly-repossessed Nakawa-based plot.

Development of the prime plot on Mukabya road (M-24/26) is part of the group’s plan to expand investments and company profile in Uganda. Speaking to journalists at the Shumuk head office in Kampala on July 24, 2024, Mukesh said his company has reached a compromise with the different stakeholders with whom they had previously held several differences on matters to do with the said land.

“I would like to announce to you members of the press and public our latest and most recent group milestone and achievement of having us repossess and take ownership of the land, which belongs to one of our group’s subsidiaries, Middle North Agencies Ltd,” he said.  

“We have already cleared the plot and made the necessary improvements and developments on the land to provide room for our planned Shumuk Group expansions as well as our new-line investments in the form of a modern in-land car depot and related investments.”

The controversial plot, which is just adjacent to the Shumuk factory in Nakawa, had until recently been a subject of contention between Shumuk and another businessman, Drake Lubega, on one hand, as well as the family of the late Haruna Semakula, formerly of the defunct Big Ways (U) Ltd.

However, Mukesh, who has maintained its claim to the plot’s ownership over the years, said the new status quo is backed by a new free-hold title acquired in 2015 from the KCCA land division marked FRV KCCA 2785/2015 Folio 9.

He noted they have already reached a compromise with the family of the late Semakula and paid them off to have their interests removed from the land. He also assured the media that court blocked Drake Lubega’s attempt to take the same plot.

FUTURE PLANS

Mukesh said the new car bond is scheduled to open soon under Shumuk car bond and Middle North Agencies Ltd, one of their group subsidiaries. He said the plot, which measures close to two-and-a-half acres, would have a capacity of accommodating over 1,000 cars at any given time.

“After more than 30 years of waiting, I am pleased to inform the world that we are now ready to conduct meaningful development on a plot that has always taken us back. There’s now a reason to smile,” he said.

“We have earmarked Shs 3 billion for our planned investments and projections, among others, on the land.”

Until recently, the plot had hosted a makeshift washing bay operated by a section of youths and women owning mini kiosks and shops in the area. This new development on the Shumuk site is now set to bring about yet another booming business given the increasing number of car bonds in the area.

According to Mukesh, they decided to venture into the car business to cater for the gap of every average Ugandan.

“We want every average Ugandan who can at least manage to save one third of their income to afford a car. In today’s world, a car is no longer a luxury, but a necessity. We are going to design a lot of tailor-made incentives that will allow all our would-be clients to afford these cars,” he said.

“All one will need to do is pay 10 per cent of the value of the car and walk away with their dream car as we work out a payment plan for them for the rest of the balances and terms, which will be quite simple and fair to all.”

Mukesh said they are also partnering with not only banks but other accessible lending institutions and financiers to help individual customers fund their car purchases.