Kigo, Uganda — April 9, 2026 — The Bank of Uganda has raised concern over the growing number of unresolved financial disputes, revealing that hundreds of pending cases are tying up an estimated Shs2 trillion in what it described as “dead capital.”
Speaking at the Second Judicial Colloquium on Finance and Banking held at Lake Victoria Serena in Kigo, Governor Michael Atingi-Ego said at least 623 unresolved banking cases remain stuck in the system, preventing funds from being reinvested into the economy.
“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.”
The colloquium, organised in collaboration with the Judiciary of Uganda, brought together judicial officers, financial sector players, and policymakers to explore faster and more efficient ways of resolving commercial disputes.
Atingi-Ego emphasized that financial sector cases are often complex and time-sensitive, warning that prolonged litigation not only affects individual businesses but also undermines broader economic growth.
He urged judicial officers to embrace Alternative Dispute Resolution (ADR) mechanisms such as mediation, negotiation, and arbitration as a faster and less costly way to handle commercial disputes.
“ADR offers a practical solution to resolve these complexities without the adversarial depletion of funds,” he noted, adding that quicker settlements would unlock capital and improve liquidity in the economy.
The Governor also congratulated Flavian Zeija on his recent appointment as Chief Justice, expressing confidence that the judiciary would enhance efficiency and innovation under his leadership.
The warning comes amid increasing focus on improving Uganda’s investment climate, with stakeholders highlighting the need for timely dispute resolution to boost investor confidence and support economic activity.
