Salaam Bank, a subsidiary of Djibouti’s Salaam Group, made headlines when it became Uganda’s first licensed Islamic Banking institution in September 2023. The bank was officially launched by President Museveni in March 2024 at a high-profile event where he lauded Uganda as having the largest market for credit and business.
However, the newest entrant in Uganda’s banking sector is now entangled in a serious legal dispute. Ann Logose, a former Applications Support Officer at Salaam Bank who served between January 2023 and December 2024, has initiated legal action against her former employer, alleging unfair termination and discriminatory practices.
According to legal documents seen by this publication and officially served to Salaam Bank, Logose claims she was dismissed under unclear circumstances. She alleges that after receiving a salary loan to purchase a vehicle, she was lured into applying for a second loan that was never disbursed. To make matters worse, her car was later repossessed by the bank under what she describes as “flimsy grounds.”
Logose is reportedly not alone. Several other former employees claim they were fired under similarly vague circumstances, with sources alleging their non-Muslim faith played a role in their termination.
The Dispute Unfolds
The conflict centers around a financing agreement known as the Murabaha Facility. Logose applied for this facility in August 2024 and received formal approval on 5th September 2024.
Under the agreement, Salaam Bank sold Logose a Subaru Impreza (registration number UBR 482M) for a total cost of UGX 40,300,000. According to the Facility Agreement (Clause 1.3), once the agreement was executed, both the risk and possession of the vehicle were transferred to Logose.
She received a repayment schedule detailing monthly deductions of UGX 671,706 from her salary, starting 25 October 2024 and running through to 29 September 2029.
In an unexpected development in November 2024, Logose was invited by the Bank’s Human Resources Manager, Ms. Serah Sanyu, to attend a top management meeting at the bank’s boardroom — without any prior notice or explanation of the agenda.
During the meeting, she was pressured to reveal details of a UGX 3.6 million friendly loan she had taken to cover comprehensive insurance and a car tracker for her vehicle. Following this, management instructed her to apply for a salary advance with promises of special approval. Despite following the directive, the salary advance was never approved or disbursed.
On 2nd December 2024, the HR Manager asked Logose to accompany her to her father-in-law’s residence in Naalya, where the vehicle was parked. Upon arrival, the HR Manager took control of the car, drove it back to the head office, locked it, and kept the keys — all without Logose’s consent. Shockingly, she wasn’t even allowed to retrieve her personal belongings from the vehicle.
The HR Manager then informed her that the bank had decided to retain the car and demanded that she settle the full amount of the purchase price within 15 days.
Logose was warned that her employment was on the line and told that “management will set a precedent.” Just two days later, on 4th December 2024, she received an official letter from the Bank’s Managing Director recalling the Auto Murabaha Facility and demanding immediate payment of the remaining balance of UGX 38 million.
She formally contested the bank’s decision, arguing that there had been no default to warrant recalling the facility or seizing the car. But on 12th December 2024, the Bank’s Company Director confirmed in writing that the bank would not reconsider its position.
Another letter dated 20th December 2024 reiterated the recall of the facility. On the same day, Logose was served with a termination letter, effectively ending her employment with the bank.
Despite intervention from the Ministry of Gender — including a formal complaint by the Commissioner of Labour, Industrial Relations, and Productivity urging a resolution — Salaam Bank’s leadership remained unmoved.
With no internal resolution in sight, and unwilling to accept the fate of other dismissed employees — many of whom were allegedly let go due to their Christian faith — Ann Logose has now taken legal action. Through her lawyers, she is seeking damages, compensation, and legal fees.
