Over Shs2 Trillion Trapped in Uganda's Unresolved Banking Disputes, Warns BoU Governor

Uganda’s banking sector is grappling with over Shs2 trillion locked in unresolved commercial disputes, according to Bank of Uganda Governor Dr Michael Atingi-Ego. Speaking at a judicial colloquium, he described the 623 pending cases as ‘dead capital’ that prevents reinvestment into productive economic areas.

Dr Atingi-Ebo emphasized that every delayed judgment hampers investment and disrupts monetary policy transmission. He called for greater use of alternative dispute resolution (ADR) to address complex financial conflicts more efficiently.

The event, themed ‘From Litigation to Resolution: Unlocking Commercial Disputes through ADR,’ was organized by the Judiciary, Judicial Training Institute, and Central Bank at Serena Kigo. Chief Justice Flavian Zeija revealed that the Commercial Division has Shs3.5 trillion in pending cases, representing frozen assets that raise borrowing costs for everyone.

Justice Zeija stressed that ADR is now a national priority, pushing judicial officers to adopt a mediator mindset for quicker settlements, including loan restructurings. Justice Andrew Khaukha of the Judicial Training Institute noted that ADR training has expanded across various courts to tackle disputes involving significant assets.

The two-day gathering unites judges, regulators, and financial experts to promote mediation and reduce judicial backlogs.

Source: Daily Monitor (Uganda)