Judiciary to set up special mediation centres to resolve banking disputes

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With over sh2 trillion locked up in banking disputes, the Judiciary has resolved to set up special mediation centres to handle such cases as part of a broader push to reduce case backlogs and unlock billions of shillings tied up in litigation.

This was one of the key resolutions made at the close of a two-day colloquium for judicial officers, banking institutions and legal stakeholders on the role of Alternative Dispute Resolution (ADR) in unlocking commercial disputes at Serena Kigo in Wakiso district on April 10, 2026.

According to Lilian Bucyana, the acting registrar at the Judicial Training Institute, the special mediation centres will become the first point of call for resolving banking disputes before they are referred to the court system.

Bucyana explained that the Judiciary will develop standard operating procedures for the centres to ensure they meet the required legal standards.

Closing the colloquium, the Principal Judge, Jane Frances Abodo, urged financial institutions to embrace ADR mechanisms such as mediation and negotiation, noting that they offer a comprehensive approach to addressing justice needs.

“Take, for instance, the case of a borrower and a lender. Today, they may stand on opposite sides of a dispute. But yesterday, they were partners in enterprise. The manner in which we resolve their dispute should not only aim at recovery of funds, but also consider whether the relationship can be preserved, whether the business can be revived and whether the parties can move forward productively,” Abodo said.

Abodo noted that commercial disputes, particularly those arising from the banking and financial sector, are increasing in both number and complexity, and if not handled efficiently, they have far-reaching implications not only for the parties involved but also for public confidence in the financial system and the broader economy.

Underscoring the importance of ADR, Abodo revealed that High Court divisions, including Land, Family, Civil, Commercial and the Industrial Court, are currently handling approximately 70,631 cases, against a workforce of 30 judges.

“This gives us a ratio of roughly 1 judge to 2,354 cases. If we were to assume that each case would take only two days to hear and determine, and that we had all the resources necessary to proceed without interruption, it would take about 141,262 judicial days to clear this caseload. Even without reducing this into years, the sheer scale tells the gravity of the situation,” Abodo noted.

She added that ADR allows mediators to uncover the underlying issues in disputes by creating space for dialogue, enabling parties to arrive at solutions that are not only legally sound but also practical and sustainable.

“ADR offers us practical tools to address case backlog, reduce the cost of litigation, and deliver timely justice while at the same time preserving commercial relationships and safeguarding sensitive information,” Abodo said.

Beyond statistics, Abodo questioned whether justice in its fullest sense is always achieved through adversarial systems, noting that many disputes stem from strained trust, disrupted livelihoods and broken partnerships rather than purely financial disagreements.

“As judicial officers, we must begin to ask ourselves a deeper question in every case: 'What is this case really about?' These are not questions that are always best answered through adversarial proceedings. They are questions that require honest, structured, and facilitated dialogue,” Abodo said.

Abodo backed the proposal by the Chief Justice, Dr Flavian Zeija, for the Commercial Court to dedicate a specific period to resolving banking and financial disputes through ADR mechanisms.

She said such an initiative would not only reduce backlog but also enable the Judiciary to more effectively address the core issues behind disputes.

Abodo commended the Bank of Uganda and the Judicial Training Institute for organising the workshop, describing it as timely.

“The Judiciary remains committed to playing its part in reducing case backlog, improving the efficiency of commercial dispute resolution and fostering a predictable and stable commercial justice system,” Abodo said.

She reaffirmed the Judiciary’s willingness to strengthen collaboration with the Bank of Uganda and the banking sector, while maintaining the necessary balance between judicial independence and regulatory autonomy.

Abodo urged judicial officers to encourage parties to pursue amicable settlement before or during litigation, noting that ADR enhances, rather than diminishes, judicial authority by improving the quality and timeliness of justice delivery.