An Australian man accused of illegally operating a university in Uganda and issuing students with bogus degrees has appeared in court.

Police arrested 52-year-old Tony Lenart in the capital, Kampala, on Tuesday and he faced court on Wednesday charged with operating a university without a licence and forging degree certificates.

Prosecutors alleged that Lenart, and others who remain at large, operated the World University of Leadership through Lenart's Institute of Advanced Leadership in Uganda between 2003 and 2007.

But the activities of the university were never licensed by higher education authorities in the country, prosecutors say.

They also allege that over the same period, Lenart forged a certificate of incorporation for the World University of Leadership, and degree certificates purporting to be issued by the university.

Lenart, who denied the charges against him, was released on bail of 14 million Uganda shillings ($A12,650).

He will face court again on March 23.

©AAP 2007