All Betway Kobs needed from the final circuit of the season, the Edward Kitaka memorial, was a third place finish to clinch the overall title.
Instead, the hosts finished second to dethrone Black Pirates and win their second piece of silverware this season.
Davis Kiwalabye and his troops were crowned on Saturday at Legends Grounds in Kampala.
Kobs went into the circuit without three players who have been key throughout the season.
Adrian Kasito, Ian Munyani and eventual tournament most valuable player Pius Ogena were all away with the Rugby Cranes team in Zimbabwe.
After all the seven circuits, Kobs had garnered 145 points, just three ahead of Pirates.
The Blue army won four circuits enroute to the Crown while Pirates won three as the two sides faces off in the final at every event.
Kobs' captain Joseph Aredo wanted the team to seal the campaign with victory at Kitaka Sevens but will take the overall title as consolation.
"The result was not good because the plan was to win our own circuit," Aredo noted after the final.
"We are happy with the overall result and now we have to built on this and be more formidable next season in the 15s." he added.
Kobs will now focus on defending the Uganda Cup title they won last year.
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