Over Shs7 Trillion Trapped in Uganda's Unresolved Banking Disputes, Warns BoU Governor

Bank of Uganda Governor Dr Michael Atingi-Ego has raised alarms over more than Shs7 trillion locked in 623 unresolved commercial disputes within the banking sector. He described this as ‘dead capital’ that prevents reinvestment into productive economic areas.

Speaking at the Judicial Officers’ Colloquium on Alternative Dispute Resolution (ADR) at Serena Kigo, Dr Atingi-Ego emphasized that delays in case resolutions act as a drag on investment and monetary policy effectiveness. The event, themed ‘From Litigation to Resolution: Unlocking Commercial Disputes through ADR,’ was organized by the Judiciary, Judicial Training Institute, and central bank.

Chief Justice Flavian Zeija pointed out that the Commercial Division has about Shs3.5 trillion in pending cases, representing frozen capital unavailable for productive use. He stressed ADR as a national priority to shift from litigation to swift resolutions, including loan restructuring, to lower borrowing costs and support economic stability.

Justice Zeija called on judicial officers to adopt a ‘mediator mindset’ for early settlements. Justice Andrew Khaukha, Executive Director of the Judicial Training Institute, noted expanded ADR training across civil, land, family, and industrial courts, recognizing that commercial disputes span multiple sectors.

The two-day forum unites judges, regulators, and financial players to promote mediation for reducing backlogs and unlocking capital.

Source: Daily Monitor (Uganda)