
Muhanga Residents Accuse Peace Rugabwa of Swindling UGX 800M in Bank Scheme
Rukiga: A section of residents in Muhanga Town Council, Rukiga District, is accusing Peace Rugabwa of defrauding them of over UGX 800 million after promising to establish a government-supported bank. The disgruntled residents, represented by their local leaders, have petitioned President Yoweri Kaguta Museveni, seeking his intervention to recover their money.
The leaders, including Evas Bishari (Councillor for Women with Disabilities in Muhanga Sub-county), Generous Kazahura, Juliet Tumuramye, Bernard Barugahare (Chairperson for Rwakikarara Cell), Arihi Willy (former General Secretary for Muhanga Town Council), and Samuel Aharizira (LCII Chairperson for Butare Ward), expressed their frustration during a meeting held at Satellite Hotel in Muhanga Town Council on January 23, 2025.
The residents alleged that Peace Rugabwa mobilized them, promising to establish a government-backed bank in collaboration with President Museveni. Rugabwa persuaded locals to buy shares and start saving, assuring them that they would earn profits based on their savings.
However, the so-called bank, allegedly operating from Rugabwa’s house in Nyabugando Cell, Rwahi Trading Centre, Ntungamo District, ceased operations in May 2017. Rugabwa reportedly disappeared with an estimated UGX 800 million, leaving members devastated.

Tushabomwe Merab, a resident of Nyabamare Cell, said many trusted Rugabwa because President Museveni introduced her as his “daughter” during a public rally at Kabale Stadium. “People had faith in her because they believed she would help them grow financially,” she added.
Initially, local group treasurers managed the funds, but as savings increased, Rugabwa instructed them to deposit the money into her “bank.” Residents were further encouraged to pay a UGX 12,000 membership fee before subscribing for shares.
Addah Tukesiga, the former Councillor for Muhanga Town Council and Secretary of the Boona Bagigahare Group, admitted that her political career suffered because people believed she collaborated with Rugabwa to defraud them.
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Medius Niwaha, another affected resident, revealed that many members sold their property to invest, hoping for profits promised by Rugabwa.
Members of the Boona Bagigahare Nyekundire Group have since petitioned President Museveni, accusing Rugabwa of using cell chairpersons to solicit money from locals. These leaders, including Evas Bishari, Generous Kazahura, and Bernard Barugahare, said they now live in fear as angry locals blame them for their financial losses.
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Moses Tukesiga Rwakakyaka, the former Vice Chairperson of the group and a resident of Rukungiri District, urged the affected members to remain steadfast and assured them that the government would address their concerns if coordinated properly.
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In her defense, Peace Rugabwa acknowledged her intention to establish a bank and promised to resolve the group’s issues by February 13, 2025.
The residents, however, remain skeptical and have vowed to continue pursuing justice until their money is recovered.
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