KAMPALA, May 9, 2026 — The Bank of Uganda [BoU] Governor, Michael Atingi-Ego, has called for the effective use of Alternative Dispute Resolution [ADR] mechanisms in handling commercial disputes, saying prolonged litigation continues to burden financial institutions, tie up capital and weaken efforts to expand financial inclusion.
Speaking in Kampala during the Commercial Court Users ADR Round Table on Wednesday, the Atingi-Ego said faster and less costly settlement processes are critical to maintaining financial sector stability and supporting Uganda’s broader economic growth.
The round table brought together leaders from the Judiciary, the banking sector and financial institutions ahead of the forthcoming Settlement Fortnight scheduled for May 18–29, 2026.
“I am honoured to join you this morning and extend my sincere appreciation to the Honourable Chief Justice and the Judicial Training Institute for convening this important ADR Round Table,” Atingi-Ego said in his opening remarks.
He commended the Judiciary for its sustained efforts to promote quicker and more effective resolution of commercial disputes through ADR mechanisms.
“At the outset, allow me to commend the Judiciary for its sustained commitment to fostering faster and more effective resolution of commercial disputes,” he said.
According to the Governor, the upcoming Settlement Fortnight and the ADR Round Table are direct outcomes of resolutions adopted during the recent Judicial Officers’ Colloquium on Alternative Dispute Resolution.
“This demonstrates a clear and commendable commitment to translating policy discussions into practical action, an approach that is both timely and necessary,” he noted.
Atingi-Ego stressed that the effectiveness of Uganda’s judicial system is directly linked to the stability of the financial sector because banks and other financial institutions depend heavily on enforceable contracts and timely settlement of disputes.
“Prolonged litigation ties up capital in non-performing assets, constrains the banking sector’s capacity to support economic activity, and can significantly impede efforts to deepen financial inclusion,” he said.
He added that ADR mechanisms offer “a faster, less costly and value-preserving pathway” that benefits financial institutions, customers and the wider economy.
The Governor revealed that through its supervisory engagements with financial institutions, the central bank has witnessed the strain caused by lengthy court battles on balance sheets and operational efficiency.
“Through our supervisory engagement with financial institutions, we have observed first-hand the institutional strain that protracted litigation imposes on balance sheets, operational focus and strategic resource allocation,” he said.
He explained that unresolved disputes often force financial institutions to become more risk-averse, increasing the cost of accessing financial services and ultimately undermining financial inclusion goals.
“This initiative is critically important for both the Bank of Uganda and the institutions we supervise. It strengthens confidence in dispute resolution mechanisms, supports prudent balance sheet management, improves risk management across the financial sector, and addresses some of the critical obstacles to expanding access to financial services,” Atingi-Ego added.
The Governor also welcomed the involvement of chief executive officers and boards of financial institutions in the ADR process, saying leadership commitment is necessary to ensure ADR becomes embedded within institutional governance and practice.
“Leadership commitment at the highest level is essential to ensure that ADR is embedded in institutional practice, supported by clear mandates and robust governance frameworks, so that it becomes the norm rather than the exception,” he emphasised.
He applauded the Judiciary for championing reforms aimed at improving commercial justice and expressed optimism that the initiative would yield positive outcomes for the courts, financial institutions and the wider economy.
“The Bank of Uganda looks forward to the positive outcomes it will generate for the courts, the banking sector and the wider economy,” he said.
Meanwhile, the Chief Justice, Flavian Zeija, officially opened an ADR training programme for lawyers from the Central Region at the Supreme Court Conference Hall in Kampala.
The training, organised by the Judicial Training Institute, is aimed at promoting implementation of the National Alternative Dispute Resolution Policy, 2025, the Judiciary Alternative Justice Systems Strategy, 2023, and the Judicature [Court-Annexed Mediation] Rules, 2026.
In his remarks, Zeija emphasised that advocates are “gatekeepers of justice” and noted that embracing ADR strengthens justice by giving citizens choice, businesses certainty and timely resolution of disputes.
He observed that with Uganda’s expanding economy and increasing financial disputes, delayed litigation continues to strain economic liquidity and increase the cost of borrowing.
He noted that in banking and credit-related matters, delays in dispute resolution are not merely legal challenges but economic setbacks that freeze capital in courts and undermine confidence in the financial sector.
The Chief Justice urged advocates to transition from being “gatekeepers of litigation” to “engineers of economic liquidity” by guiding clients towards faster and more sustainable dispute resolution mechanisms.
He further underscored that ADR should become the preferred first step in resolving financial disputes, adding that delayed resolution of cases negatively affects borrowers, businesses and public confidence in the financial system.
Zeija reassured advocates that ADR would not diminish their professional relevance, explaining that clients who recover through mediation are more likely to retain confidence in legal services than those whose businesses collapse during prolonged litigation.
He also highlighted key reforms introduced under the Judicature [Court-Annexed Mediation] Rules, 2026, including the mandatory conclusion of mediation within 60 days, accreditation of mediators under a strict code of conduct, enforceable settlement agreements recorded as consent judgments, and free access to court-annexed mediation services funded by the Judiciary.
The Chief Justice reiterated the Judiciary’s commitment to integrating Alternative Justice Systems [AJS] alongside formal legal mechanisms, noting that cultural and religious leaders play a critical role in promoting reconciliation and restorative justice within communities.
He said the Judiciary seeks to move away from overly adversarial approaches by embracing systems that preserve relationships, social harmony and dignity while ensuring justice is served.
Zeija further revealed that the Judiciary has already launched AJS pilot engagements in Gulu and Lira under the leadership of the Principal Judge, adding that Buganda and Karamoja will follow as pilot regions.
According to the Chief Justice, integrating cultural and religious leaders into the ADR framework is intended to professionalise indigenous methods of dispute resolution and make justice more meaningful and accessible to ordinary Ugandans.
Zeija also announced that the Judiciary will conduct a Mediation Settlement Fortnight from May 18 to 28, 2026, aimed at accelerating the resolution of disputes and unlocking billions of shillings tied up in litigation.
He encouraged advocates to use the ongoing training to prepare clients to actively participate in the initiative.
The Chief Justice concluded by urging lawyers to evolve from being “warriors in court” to becoming “architects of resolution”, emphasising that justice must not only be fair, but also swift and economically responsive.
The Chairperson of the Governing Council of the Judicial Training Institute and Justice of the Supreme Court, Mike Chibita, welcomed participants to the training and described the rollout of the new mediation rules as a critical step in strengthening ADR mechanisms within Uganda’s justice system.
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