Alternative Dispute Resolution push gains momentum as BoU flags UGX 7 trillion in locked banking disputes
“Every shilling locked in a disputed loan is a shilling that cannot be re-invested into the productive sectors of our economy,” Atingi-Ego said. “Every delayed judgment is effectively a tax on investment and a brake on the transmission of monetary policy itself.”
Michael Atingi-Ego, the Governor of Bank of Uganda, has called for wider adoption of Alternative Dispute Resolution (ADR) mechanisms in Uganda’s financial sector, warning that prolonged litigation is tying up trillions of shillings and constraining economic activity.
Speaking at the opening of the 2nd Judicial Colloquium on Finance and Banking at Lake Victoria Serena Golf Resort & Spa, Atingi-Ego revealed that at least 623 unresolved banking cases are currently locking up an estimated UGX 7 trillion in disputed value.
He described the situation as a drag on the economy, noting that “dead capital” trapped in court processes limits the ability of financial institutions to recycle funds into productive sectors.
“Every shilling locked in a disputed loan is a shilling that cannot be re-invested into the productive sectors of our economy,” Atingi-Ego said. “Every delayed judgment is effectively a tax on investment and a brake on the transmission of monetary policy itself.”
The colloquium, held under the theme *“The Role of Alternative Dispute Resolution in Resolving Commercial Disputes,”* brought together judicial officers, financial sector players, and legal experts to examine faster and more efficient ways of handling complex financial disputes.
Atingi-Ego emphasized that disputes in banking and finance are often highly technical and time-sensitive, making traditional litigation both costly and inefficient. He argued that ADR tools such as mediation, negotiation, and arbitration provide a viable pathway to quicker resolution while preserving financial value.
“Alternative Dispute Resolution mechanisms offer a way to resolve these complexities without the adversarial depletion of funds,” he said, urging judicial officers to adopt ADR as a “strategic instrument of economic development.”
The central bank chief’s remarks highlight growing concern within Uganda’s financial sector over the backlog of commercial cases, which analysts say undermines credit growth and investor confidence.
Co-officiating at the event, Flavian Zeija received praise from Atingi-Ego following his recent appointment as Chief Justice. The Governor expressed confidence that the Judiciary of Uganda would strengthen its role in supporting economic transformation under Zeija’s leadership.
“I am confident the Judiciary will reach new heights under your leadership,” Atingi-Ego said.
The push for ADR comes at a time when Uganda is seeking to deepen financial sector efficiency and improve the business environment, with faster dispute resolution increasingly seen as critical to unlocking capital and sustaining economic growth.
