Uganda: Commercial Court Moves to Fast-Track Shs187bn Banking Disputes Through Mediation

The Commercial Court has rolled out a large-scale mediation exercise targeting 326 banking and credit disputes valued at Shs187.65 billion, as part of the ongoing Settlement Fortnight running from May 18 to 29, 2026.

The initiative is part of a broader push by the Judiciary of Uganda to reduce case backlog and promote Alternative Dispute Resolution (ADR) in high-value commercial matters, particularly within the banking sector.

The cases were presented during the Dedicated Banking Sector ADR Roundtable held at the Supreme Court Conference Hall in Kampala, bringing together judicial officials, bankers, and financial sector regulators.

Deputy Governor of the Bank of Uganda, Michael Atingi-Ego, said quicker dispute resolution is essential for maintaining financial stability and restoring investor confidence in the banking system.

"ADR mechanisms provide a faster, less costly, and value-preserving pathway that benefits all stakeholders. By reducing non-performing loans, ADR strengthens balance sheets and builds investor confidence," Atingi-Ego said.

The mediation drive is expected to help financial institutions recover significant sums tied up in prolonged litigation, while also giving borrowers an opportunity to settle obligations outside the formal court process.

Uganda Bankers' Association Executive Director Wilbrod Owor urged financial institutions to fully integrate ADR into their operations, describing it as central to building trust and resilience in the sector.

"ADR must become part of our DNA as financial institutions. It is how we preserve trust, unlock capital, and build resilience," Owor said.

Judiciary officials noted that the Settlement Fortnight is part of ongoing reforms aimed at strengthening commercial justice, improving case disposal rates, and enhancing the flow of capital in the economy.

The initiative comes at a time when banks are under pressure to reduce non-performing loans and improve lending efficiency, with delayed dispute resolution often locking up large amounts of capital.

Officials say the mediation programme is expected to significantly ease congestion in the Commercial Court while providing a more efficient pathway for resolving high-value financial disputes.

Read the original article on Nile Post.