By Amuge Charlotte
The Governor of the Bank of Uganda, Michael Atingi-Ego, has raised concern over the growing number of unresolved banking disputes, warning that billions of shillings remain locked out of the economy.
Speaking at the opening of the 2nd Judicial Colloquium on Finance and Banking at Lake Victoria Serena Golf Resort in Kigo, Atingi-Ego said 623 unresolved cases are holding up an estimated Shs2 trillion in disputed value.
He described the funds as “dead capital,” noting that money tied up in court battles cannot be reinvested 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. Every delayed judgment is effectively a tax on investment and a brake on the transmission of monetary policy,” he said.
The colloquium is being held under the theme of strengthening the role of alternative dispute resolution in handling commercial disputes.
Atingi-Ego said financial sector cases are often complex and time-sensitive, making prolonged litigation costly for both businesses and the wider economy.
He called on judicial officers to adopt alternative dispute resolution mechanisms such as mediation, negotiation and arbitration to speed up case settlement and reduce pressure on the courts.
“These mechanisms offer a way to resolve complex disputes without the adversarial depletion of funds,” he said, urging the Judiciary to treat ADR as a tool for economic growth.
The Governor also congratulated the Chief Justice, Flavian Zeija, who co-officiated at the event, expressing confidence in the Judiciary’s direction under his leadership.
The colloquium brings together judicial officers and financial sector players to examine how disputes can be handled more efficiently to support investment and financial stability.
