Business 5 June 2026 Daily Monitor (Uganda)
Uganda's Economy Faces Stalemate Amidst Escalating Banking Disputes
A 13-year legal battle between an engineer and dfcu Bank highlights a growing crisis of pending banking litigation in Uganda, trapping billions and hindering economic growth. The Supreme Court's upcoming ruling in the Wills International case could set a precedent for resolving these complex disputes. Source: https://www.monitor.co.ug/uganda/news/national/how-banking-disputes-have-the-economy-in-a-chokehold-5486844
A protracted legal dispute involving a construction engineer and dfcu Bank, now before the Supreme Court after 13 years, is emblematic of a broader economic challenge facing Uganda. The case, brought by George William Kiyega against dfcu Bank over a Shs318 million loan secured against land, has traversed all levels of the Ugandan judicial system, culminating in a split Court of Appeal decision that found the bank’s actions illegal and fraudulent.
The core of the dispute lies in allegations that dfcu Bank incorrectly registered mortgage charges on Mr. Kiyega’s land. While the bank attributes some of these to administrative errors, court records suggest a pattern of irregularities, including the purported use of a forged stamp duty certificate from the Uganda Revenue Authority. The Court of Appeal majority supported these findings, though one justice dissented, arguing that fraud was not adequately pleaded in the initial case.
This complex case is not an isolated incident. Bank of Uganda Governor Dr. Michael Atingi-Ego recently revealed that approximately 623 unresolved banking cases are currently tying up an estimated Shs7 trillion in capital. He described this “dead capital” as a significant impediment to productive investment within the economy.
In response to the escalating problem, Chief Justice Dr. Flavian Zeija has emphasized the critical need for alternative dispute resolution (ADR) mechanisms. Joint initiatives between the judiciary and the central bank are now focusing on establishing special mediation centers as the primary avenue for resolving banking disputes before they escalate to court. This approach aims to expedite resolutions and reduce the economic burden of lengthy litigation.
The Supreme Court’s eventual judgment in the Wills International Engineers and Contractors Limited versus dfcu Bank case is keenly anticipated, as it is expected to provide crucial guidance on how such complex banking disputes will be handled moving forward, potentially influencing the resolution of hundreds of similar cases currently clogging the courts.
Source: Daily Monitor (Uganda)