The Principal Judge, Lady Justice Jane Frances Abodo, has flagged off the Trade Disputes Settlement Fortnight at the Commercial Court Division in Kampala,to resolve UGX 325 billion locked up in commercial gridlocks.
The initiative will focus on resolving trade, construction and corporate disputes through mediation and will run from August 17 to 28, 2026.
Backed by Lady Justice Anne Mugenyi Bitature, the Head of the Commercial Court and Justice Thomas Ocaya, court will utilise annexed mediationto fast-track case resolutions.
This is a new approached which was left in place by the retired Chief Justice Owiny Dollo and is now being fasttracked by his successor Cheif Justice ,Dr. Flavian Zeija, to bypass the lengthy , legal procedures that experts say have led to thousands of cases remianing in the court system unresolved -some for decades .
Lawyers , have been previously been accused for contributing to this scenario by raising endless Premilinary Objections, (POs) and or seeking for injuctive orders while the substative matters are never heard on time .
This strategic push , now aims to bypass traditional litigation to clear backlogs, quickly unlock tied-up capital, and mend strained business relationships.
Judicial officers said 326 cases have been cause-listed for this particular two weeks -mediation exercise, out of more than 700 banking and credit disputes identified for possible settlement.
At the launch event , Abodo said unresolved commercial disputes continue to undermine economic growth by locking up capital and weakening confidence in both the financial and justice systems.
“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.
She said when such matters remain unresolved for extended periods, the repercussions extend beyond the immediate litigants by locking up vital capital that could otherwise fuel economic growth, straining business relationships and creating emotional and financial distress for both borrowers and lenders.
Abodo said the Judiciary has now elevated Alternative Dispute Resolution (ADR) from a secondary option to a central pillar of justice delivery, particularly in commercial disputes where preserving business relationships is critical.
She explained that the initiative is being implemented under the new Judicature (Court-Annexed Mediation) Rules, 2026, which introduce a mandatory 60-day mediation timeline and remove financial barriers by requiring the Judiciary to pay accredited mediators.
“Most importantly, any settlement agreement reached under this framework is immediately enforceable as a court order, providing the certainty and finality that parties crave,” Abodo added.
The Deputy Registrar of the Commercial Court, Jessica Chemeri, said the mediation fortnight specifically targets disputes within the banking loans and credit cluster, many of which have never been subjected to mediation before.“We decided that we were going to conduct a cluster-based mediation fortnight handling cases from the banking loans and credit sector,” Chemeri said.
She revealed that the Commercial Court currently has about 1,700 cases within the banking and credit cluster, while approximately 737 cases have already been earmarked for mediation.“Out of those, about 326 cases are going to be mediated during this fortnight,” she said.
Chemeri clarified that not all cases are expected to conclude within the two weeks, but noted that mediation proceedings are legally expected to conclude within 60 days from referral.She said the cases lined up for the fortnight are collectively valued at approximately 700 billion shillings.
“This money is locked up in disputes. Once these cases are concluded, resources are freed, businesses continue operating, and relationships are restored,” she said.According to the Deputy Registrar, at least 20 mediators have been deployed for the exercise, including judges, retired judicial officers, and senior lawyers trained in commercial mediation.
Some mediators are conducting sessions from chambers and offsite locations to increase efficiency.
Professor Andrew Khaukha, Executive Director of the Judicial Training Institute (JTI), said the mediation drive follows a recent ADR colloquium convened by Chief Justice Dr Flavian Zeija and Bank of Uganda Governor Michael Atingi-Ego.
Khaukha said the meeting resolved that the Commercial Court should aggressively promote mediation as a way of disposing of cases faster and preserving business relationships.
He noted that business disputes often involve parties who previously enjoyed productive commercial relationships, and that the court is currently handling cases worth more than 3 trillion shillings.
“Business is about maintaining relationships. The only way to preserve those relationships is to settle disputes amicably through facilitated conversations,” Khaukha said.
The Uganda Bankers Association, represented by Senior Legal Advisor Joel Naluwairo, welcomed the initiative, saying banks have long struggled with delayed loan recovery due to prolonged litigation.
Naluwairo said banks are now optimistic that mediation will reduce backlog and improve loan recovery.“We know the mediation fortnight will help us deal with the backlog that we have always complained about,” Naluwairo said.
“One of the challenges has been that some borrowers use courts as a tactic to evade paying loans. But mediation allows parties to sit together and agree on workable payment solutions.”He noted that banks are hopeful that at least half of the listed cases will be successfully resolved.
On their part, the Kampala City Traders Association (KACITA) also expressed support for the initiative, saying quick dispute resolution is vital for business survival.
KACITA Legal Advisor Joseph Ssevume said many traders are currently involved in disputes with banks and insurance companies, making mediation a timely intervention.
“As traders, we are very happy with this court process of mediation,” Ssevume said. “Most cases take long, yet for business people, time is money. If cases are resolved quickly, it helps traders stay in business while maintaining relationships with banks,” he added.
Some of the mediators in this exercise, including Veronica Bichetero and Kenneth Barungi, appreciated the Judiciary for consistently supporting mediation whenever the need arises.
The Judiciary is targeting at least a 50 percent settlement rate during the mediation fortnight, which runs until August 29, 2026.
