Principal Judge Abodo launches banking dispute mediation fortnight

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The Commercial Division of the High Court has embarked on an intensive mediation exercise aimed at clearing at least 320 banking-related cases within two weeks as part of broader efforts to tackle case backlog and unlock billions of shillings tied up in litigation.

The initiative, conducted under the Judiciary’s quarterly mediation fortnight, comes amid concern over a growing pile of unresolved commercial disputes, particularly in the banking loans and credits cluster.

Launching the initiative at the commercial court today, May 18, 2026, Principal Judge Jane Frances Abodo said the mediation settlement fortnight is designed to accelerate the resolution of commercial disputes through Alternative Dispute Resolution (ADR) mechanisms with special emphasis on court-annexed mediation. 

The settlement fortnight is a result of the colloquium on commercial disputes in which the Bank of Uganda Governor, Michael Atingi-Ego, underscored the importance of the timely resolution of disputes. 

“This launch is both timely and significant. For too long, our commercial courts have witnessed a steady rise in the volume and complexity of disputes, particularly those emanating from the banking and financial sector,” Abodo said.

Abodo observed that when the banking disputes remain unresolved for extended periods, the repercussions extend beyond the immediate litigants because they lock up vital capital that could otherwise fuel economic growth, strain or destroy valuable business relationships, impose crippling legal costs, create emotional and financial distress for both borrowers and lenders and ultimately erode public confidence in the country’s financial system and the administration of justice.

“We have all come to appreciate that a dispute that drags on for years through multiple layers of litigation often leaves all parties exhausted, financially depleted and dissatisfied. In many cases, the formal court decision arrives too late to salvage the underlying commercial objectives. This is why the Judiciary has elevated ADR from a mere alternative to a core policy imperative and a strategic tool for delivering modern, responsive justice,” Abodo said.

Abodo added that the settlement fortnight represents a practical and decisive step in translating the ADR policy into action, and it builds firmly upon the progressive Judicature (Court Annexed Mediation) Rules, 2026, which introduced a robust and innovative framework for commercial dispute resolution.

“These Rules establish a clear and structured 60-day mandatory timeline for the conclusion of mediation from the date of referral. They also remove previous financial obstacles by ensuring that the judiciary now remunerates accredited court-annexed mediators, thereby allowing parties to concentrate fully on achieving fair, sustainable and mutually acceptable settlements,” she said.

Enforceable agreement

Most importantly, Abodo noted that any settlement agreement reached under the framework is immediately enforceable as an order of the court providing the certainty and finality that parties require.

Abodo revealed that the settlement fortnight draws strength from the rich insights gained during recent capacity-building engagements, including workshops on the role of ADR in commercial disputes.

Abodo urged the members of the legal fraternity to embrace the initiative, noting that the hallmark of a great advocate in the 21st century is no longer only the ability to litigate aggressively but the wisdom and skill to act as an effective problem-solver that guides clients towards timely, cost- effective and commercially sensible solutions through ADR.

“Through this settlement fortnight, we seek to achieve measurable outcomes, including having significantly fewer cases remaining in our courts, faster and more satisfactory resolution of banking and commercial disputes, improved protection of stakeholders and greater confidence in the country’s financial ecosystem,” Abodo said.

Value of cases above sh500b

High Court judge Anna Mugenyi, also the head of the Commercial Court, revealed that as of May 6, this year, the Commercial Court had 1,730 cases in banking and credit cases pending, and out of those, 326 cases were extracted for this fortnight’s mediation.

“The value of the 1,730 cases is about shillings 552 billion. The estimation value for the 326 cases set for mediation is shillings 200 billion. We expect that at the end of the mediation period, sh200b would have been unlocked into the economy. I know that by resolving these cases, we would have unlocked a substantial amount of money into the economy. We shall reduce the long backlog in banking,” She said.

Justice Mugenyi said the overall pending cases at the commercial court are over 8,000 cases.

“We ask that our litigators embrace compromise, and we also ask that the stakeholders, the bankers. We ask that our stakeholders embrace compromise; commercial disputes resolved today will cost less than years of litigation. We also ask that our stakeholders comply promptly with the agreed settlement terms, which will strengthen ADR culture,” Justice Mugenyi said.

She added, “Out of the 326 cases, we are optimistic that we shall settle 50% of them by the end of the mediation period. The remaining 50% will be set in motion, and the negotiations will continue.”

Joseph Sevuma, the legal adviser of Kampala City Traders Association (KACITA), commended the judiciary for the initiative, saying it is going to boost the economy.

The head of the Commercial Court, Justice

Benefits of mediation

Unlike the adversarial litigation system, mediation leads not only to faster resolution of disputes but also to confidentiality and significant cost savings.