A fresh controversy has emerged within Uganda’s political circles after a Rushere-based milk supplier petitioned President Yoweri Museveni, asking him to intervene in a financial dispute involving his son-in-law Odrek Rwabwogo.
Lydia Munyaruguru, a director at Top Milk Traders Ltd, has appealed to the President to help her company recover more than Shs600 million, which she claims is owed to them by Vital Tomosi Dairies, a company linked to Rwabwogo.
In her petition, Munyaruguru says the money accumulated after her company supplied large quantities of milk to Vital Tomosi Dairies between 2021 and 2023, but payment was allegedly never completed.
According to the supplier, Top Milk Traders provided approximately 280,000 litres of milk to the dairy processor during that period, creating an outstanding balance of about Shs364 million.
She claims that despite repeated efforts to secure payment, the company has failed to clear the debt, leaving her business struggling under heavy financial pressure from banks and other lenders.
The petition was also copied to the office of Gen Muhoozi Kainerugaba, the Chief of Defence Forces and chairman of the Patriotic League of Uganda (PLU), where Munyaruguru requested intervention.
She explained that after Vital Tomosi Dairies stopped operating in 2023, creditors were reportedly contacted by company officials who collected delivery documents and assured suppliers that their payments were being processed.
However, Munyaruguru claims that despite those assurances, no money was paid to her company for the milk supplied.
She further stated that when Vital Tomosi Dairies resumed operations in 2025, she reached out to Odrek Rwabwogo, whom she identifies as the owner of the company, but alleged that promises to settle the debt did not result in payment.
The financial challenges, she said, have now affected her ability to repay loans obtained from several commercial banks that she used to finance milk collection and supply operations.
According to her breakdown, Top Milk Traders owes DFCU Bank about Shs30 million, Pearl Bank approximately Shs160 million, Bank of Africa around Shs140 million and Stanbic Bank about Shs55 million.
She added that the company also has outstanding obligations with Ebbo Sacco amounting to Shs180 million and Bessani Sacco amounting to Shs35 million.
Munyaruguru said the accumulated debts have pushed the company into a difficult situation, claiming that lenders have started moves to sell company properties located in Mbarara City, Rushere Town Council and Kazo Town Council.
She also claimed that some family members and employees connected to the business have been affected as the company struggles to survive amid the financial crisis.
In her appeal to President Museveni, she asked the Head of State to use his influence to ensure that the alleged debt is settled so that the company can continue operating and supporting farmers who depend on the milk supply chain.
“We were advised by Hon. David Kabanda to make this passionate appeal to you,” the petition reportedly stated, as the suppliers sought presidential intervention.
The allegations come at a time when Odrek Rwabwogo has been at the centre of intense political debate following his public statements on democracy, free speech and governance reforms.
Rwabwogo, who is married to President Museveni’s daughter Patience Museveni Rwabwogo, has recently gained attention after calling for tolerance of criticism and encouraging open debate in society.
His comments have attracted criticism from some members of the PLU camp, including supporters of Gen Muhoozi Kainerugaba, who have accused him of presenting himself as a different kind of leader.
Some of his critics have previously alleged that he has failed to meet certain financial obligations, claims that Rwabwogo has not publicly addressed in relation to this specific petition.
Supporters of Munyaruguru’s appeal have welcomed the move, saying it highlights the challenges faced by small businesses that supply large companies and depend on timely payments to survive.
The petition now places the dispute before the country’s highest political office, with attention expected to focus on whether intervention will be made and whether the alleged Shs600 million debt will eventually be resolved.
As the matter develops, both the business community and political observers will be watching closely to see how the dispute involving one of Uganda’s prominent business figures unfolds.
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