The acquisition of the former UAP Insurance Building on Kimathi Avenue by businessman Dr Sudhir Ruparelia goes beyond a simple change in ownership of one of Kampala’s well-known properties. The deal comes at a time when the capital’s commercial real estate market is undergoing notable changes.
Located at Plot 1 Kimathi Avenue in Kampala’s Central Business District, the property has reportedly been acquired by the Ruparelia Group from Old Mutual for an undisclosed amount. The transaction was first reported by CEO East Africa, which cited sources familiar with the deal.
The purchase adds the historic property to a real estate portfolio that Ruparelia has continued to expand through a combination of new developments and strategic acquisitions.
Kampala’s office market is increasingly showing a divide between modern buildings that continue to attract tenants and older properties that face growing pressure to upgrade facilities, improve services and remain competitive.
According to Knight Frank Uganda’s H1 2026 Kampala Property Market Performance Review, average rents for Grade A offices increased to about US$17 per square metre per month, compared with US$16.50 during the first half of 2025. Meanwhile, average rents for Grade AB offices fell from US$14.50 to approximately US$14.00. Occupancy averaged 87 percent for Grade A+/A buildings, compared with 83 percent for Grade AB properties.
The figures reflect what property consultants have described as a growing “flight to quality”, with tenants increasingly considering factors such as building standards, efficient office layouts, professional management, employee experience and parking when choosing premises.
Against that backdrop, the Kimathi Avenue acquisition takes on added significance.
The building has a long-standing connection to Uganda’s insurance industry. Historical records from UAP identify it as the UAP Insurance Building and the former Kampala headquarters of UAP Insurance Uganda. The same address was also associated with UAP Properties Uganda.
UAP later moved its insurance operations to Nakawa Business Park, leaving the Kimathi Avenue property within its wider portfolio of real estate interests.
Its transfer to Ruparelia now places a property with a significant institutional history under the ownership of one of Uganda’s prominent private property investors.
The acquisition also raises questions about how the building will be positioned in an increasingly competitive office market where tenants are becoming more selective.
It remains unclear whether Ruparelia will retain the building in its current form, undertake renovations or pursue a larger redevelopment project.
For Old Mutual, the transaction forms part of a broader effort to reduce its exposure to directly held real estate.
Old Mutual Holdings Group CEO Arthur Oginga said in September 2026 that the group was considering offers for some of its properties in Uganda and expected progress on the disposal programme in the months ahead, with some transactions potentially being completed by mid-2027.
The company has been reviewing the performance of its property assets as it considers where its capital can deliver stronger returns.
At the end of 2024, Old Mutual Holdings reported investment property valued at approximately KSh19.42 billion, down from KSh21.24 billion a year earlier.
Its Ugandan portfolio included Nakawa Business Park, which was valued at about KSh4.37 billion at the end of 2024, as well as Nakawa House and another Ugandan property or plot.
If more assets are sold, Kampala could see further changes in ownership across its commercial property sector.
For Ruparelia, the Kimathi Avenue purchase is consistent with a strategy that combines property development with acquisitions.
His real estate interests are largely associated with Meera Investments, while Crane Management Services handles property management across commercial, retail, residential and hospitality properties.
The group has developed major Kampala properties such as Kingdom Kampala and Pearl Business Park, while also adding established buildings to its portfolio through acquisitions.
In 2020, Meera Investments acquired Simbamanyo House on Lumumba Avenue for about US$5 million. The property was subsequently renamed Gender and Labour House.
Four years later, Ruparelia and his wife, Jyotsna, acquired the 14-storey Lotis Towers in Nakasero following an auction by dfcu Bank. The building was later renamed Arie Towers.
The Kimathi Avenue deal adds yet another strategically located commercial property to the group’s growing Kampala portfolio.
However, the building’s location may not be enough on its own to guarantee long-term competitiveness.
Kimathi Avenue is situated within Kampala’s traditional commercial and financial district, close to Kampala Road, Parliament Avenue, banks, government offices and major corporate establishments.
But the office market is increasingly placing greater emphasis on the quality of buildings and services.
Knight Frank’s latest assessment shows that leasing activity during the first half of 2026 was largely driven by businesses moving into higher-quality buildings rather than a major increase in new companies entering the market. At the same time, more than 130,000 square metres of office space is currently in the development pipeline.
For owners of older properties in the CBD, the trend creates pressure to invest in refurbishment, parking, building services, flexible leasing options and modern workplace facilities.
That makes the future direction of the Kimathi Avenue property particularly important.
The Ruparelia-Old Mutual transaction comes at a time when institutional investors and private developers are taking different approaches to Kampala’s evolving real estate market.
While Old Mutual is reviewing its direct property holdings and looking to recycle capital, Ruparelia continues to acquire and develop properties in strategically positioned areas of the capital.
These contrasting strategies are contributing to a changing ownership landscape for Kampala’s commercial buildings.
For the Kimathi Avenue property, its next chapter will likely depend not only on its central location but also on how its new owner responds to a market that increasingly favours modern, efficient and professionally managed office space.
For now, one of Kampala’s longstanding insurance landmarks has changed ownership, placing the historic CBD property under a group that has steadily expanded its presence across the city.
