Uganda’s mounting commercial court backlog is tying up trillions of shillings and creating headwinds for private investment, according to government and financial sector sources.
Data from the Judiciary’s National Court Case Census 2025, cited by Chief Justice Flavian Zeija during the opening of the New Law Year, shows that unresolved commercial disputes alone accounted for nearly Shs 6 trillion (approximately US$1.6 billion) at the end of the 2024/25 financial year. Pending commercial cases numbered 5,790, a slight decline from the previous year’s 6,285 cases, yet they represent the highest monetary value among all categories of litigation in Uganda, surpassing civil disputes, land cases, and criminal matters.
At the same time, the total number of pending cases across Uganda’s courts rose sharply by 17.9 per cent, from 161,838 in 2023/24 to 190,793 in 2024/25, reflecting the judiciary’s struggle to keep pace with increasing filings. Criminal matters remain the largest category at 70,338 cases, while international crimes had the fewest, with 44 pending cases. Court backlogs, defined as cases unresolved for at least two years, also rose 8.4 per cent to 46,181. The High Court circuits recorded the largest backlog at 17,438 cases, while the Supreme Court maintained the smallest.
Bank of Uganda Governor Michael Atingi-Ego says the delays have real economic consequences. “Unresolved commercial disputes remove large sums of money from circulation, slow economic activity, and undermine investor confidence,” he said. When funds remain tied up in litigation for years, they cannot be reinvested in businesses or other productive sectors, contributing to higher lending rates and constrained credit growth.
The Uganda Bankers’ Association (UBA) warns that the stalled cases are a systemic challenge affecting the financial sector. Wilbrod Owor, UBA CEO, noted that unresolved claims increase non-performing loans and reduce liquidity, driving up interest rates. “Faster resolution of commercial disputes would unlock capital, stimulate lending, and promote private sector growth,” Owor said.
More Read
Government authorities have pledged support to accelerate case disposal, particularly in commercial courts. The Ministry of Finance, Planning and Economic Development is providing additional funding and promoting Alternative Dispute Resolution (ADR) methods, including mediation and plea bargaining, as a quicker, more flexible means of resolving disputes. In 2024/25, ADR mechanisms resolved 3,760 cases, achieving a 67.16 per cent clearance rate.
Despite these interventions, the number of commercial cases continues to rise. High Court filings jumped 23 per cent, from 6,285 to 7,976 cases, while High Court divisions saw a 34 per cent increase in pending cases, from 5,776 to 7,754. The commercial court backlog alone increased from 1,645 to 2,135 cases, even as the total value of money tied up in disputes declined slightly from Shs 6.34 trillion ($1.7 billion) to Shs 5.98 trillion ($1.6 billion).
The Ministry of Finance stresses that these reforms are embedded in Uganda’s Fourth National Development Plan (NDPIV). The plan’s Governance and Security Programme highlights the importance of reducing backlogs in commercial and land courts to improve access to justice and support economic growth.
More Read
Judiciary officials and financial sector leaders agree that accelerated resolution of commercial disputes is critical for improving Uganda’s business environment. ADR mechanisms, they argue, can help reduce reliance on lengthy court processes and increase the speed at which funds are freed for productive use.
As private investors weigh the risks of investing in Uganda, the efficiency of the judicial system remains a key factor. Experts say that unless the government and judiciary can significantly cut the commercial backlog, unresolved disputes will continue to tie up capital, elevate borrowing costs, and deter new investment.
With trillions of shillings locked in pending cases, Uganda’s private sector is under pressure to find alternative financing sources while awaiting improvements in judicial efficiency. The resolution of this bottleneck is seen as crucial for unlocking investment, boosting lending, and supporting the country’s broader economic growth ambitions.
