Business 20 May 2026 The Observer (Uganda)
Uganda Commercial Court Unlocks Shs 700 Billion in Dispute Resolution Drive
The Commercial Court in Uganda has launched a two-week mediation initiative, aiming to resolve business disputes valued at approximately Shs 700 billion. This effort seeks to free up capital trapped in lengthy legal battles and alleviate pressure on the judicial system. Source: https://observer.ug/news/uganda-moves-to-unlock-shs-700-billion-trapped-in-court-battles
Uganda’s Commercial Court is undertaking an intensive two-week mediation drive to settle business disputes totaling around Shs 700 billion. Judicial officials describe this initiative, dubbed a “mediation settlement fortnight,” as a critical step towards unlocking funds tied up in protracted court cases and easing the burden on the justice system.
The drive, launched by Principal Judge Lady Justice Jane Frances Abodo, specifically targets disputes involving bank loans and credit facilities. These cases have significantly overwhelmed the commercial court, straining relationships between borrowers, banks, and businesses.
Judiciary officials reported that at least 326 cases have been scheduled for mediation, selected from over 700 identified banking and credit disputes suitable for negotiated settlements. Mediation offers a less time-consuming and costly alternative to traditional litigation, focusing on compromise and mutual agreement to preserve business relationships.
Principal Judge Abodo highlighted that unresolved commercial disputes not only delay justice but also negatively impact the economy by immobilizing capital. She noted the increase in complex disputes from the banking and financial sector, leading to financial strain and deteriorated lending relationships.
The Judiciary is now prioritizing Alternative Dispute Resolution (ADR) mechanisms like mediation and arbitration. Reforms under the new Judicature (Court-Annexed Mediation) Rules, 2026, mandate that mediation cases conclude within 60 days and waive the costs of accredited mediators to remove financial barriers.
Deputy Registrar Jessica Chemeri stated that while the Commercial Court faces around 1,700 banking and credit disputes, the current mediation focus is on 737 earmarked cases. The deployed resources include 20 mediators, consisting of judges, retired judicial officers, and senior lawyers.
This mediation campaign follows a recent colloquium on ADR. With commercial disputes in Uganda reportedly exceeding Shs 3 trillion, faster settlement mechanisms are deemed essential. Both commercial banks and traders have welcomed the initiative, seeing it as a way to improve loan recovery and ensure business continuity.
The mediation fortnight, running until May 29, aims to resolve at least half of the listed disputes, offering a path to faster resolution, reduced costs, and the potential to restore damaged commercial relationships.
Source: observer.ug