The Kampala City Traders Association (KACITA) has complained against what it describes as impunity in the resolution of commercial disputes. It says that small businesses and traders are often disadvantaged when they come into conflict with powerful companies, government agencies and other financially stronger parties.
KACITA Chairperson Isa Ssekito says the imbalance is particularly common in the largely informal business sector, where many traders lack proper documentation to support their claims and are often unable to withstand lengthy and costly legal battles. Ssekito says the situation has created a perception among some businesspeople that he who is bigger cannot be fair to you, while poorer litigants believe they stand little chance of winning disputes against financially stronger opponents.
He was speaking on Tuesday at a Judiciary roundtable on trade, construction and corporate disputes, ahead of the Trade, Construction and Corporate Disputes Settlement Fortnight, scheduled for August 17th to 28th, 2026. The round table Discussion was taking place at the Supreme Court Conference Hall in Kampala. Ssekito said one of the major challenges facing the business community is the lack of effective mediation when disputes arise between large and small traders.
He said attempts by smaller businesses to seek mediation can become ineffective where the more powerful party has little interest in settling. According to Ssekito, the problem is worsened by the informal nature of much of Uganda’s business sector, where transactions are frequently based on mutual trust rather than written contracts.
He has urged traders to document their transactions, saying the absence of written agreements makes it difficult to prove claims when disputes eventually arise. Ssekito has also singled out tax disputes involving the Uganda Revenue Authority, arguing that existing procedures can place an excessive financial burden on businesses seeking to challenge assessments.
He questioned the requirement for businesses to pay disputed tax amounts before pursuing certain avenues of appeal, saying this can undermine the incentive for the revenue authority to enter mediation.
Ssekito said that most cases, the traders are asked to deposit 30 percent of the case value before proceeding to handle cases, especially in the Tax Appeals Tribunal, which traders say is too much.
Ssekito said once the disputed money has already been collected, the institution may have little motivation to urgently settle the matter, while the affected business continues to carry the financial burden.
He cited disputes involving rice importing companies over tax obligations and customs valuation, saying some companies have stopped importing as a result of the disagreements, while others are considering leaving Uganda.
The KACITA chairperson said the association has petitioned the Ministry of Finance, the Ministry of Trade, the Attorney General and the Uganda Revenue Authority on several occasions to mediate some of the disputes but said the appeals have not received adequate attention.
He also called for greater sensitisation of the business community about the Tax Appeals Tribunal, saying many traders are unaware that the institution provides a mechanism for challenging tax decisions.
Ssekito further raised concerns about disputes between landlords and tenants, particularly in Kampala’s commercial centres.
He said traders have lost businesses and merchandise following landlord-tenant conflicts and called for stronger mechanisms to protect tenants and resolve disputes before they escalate.
He warned that unresolved commercial disputes can have consequences beyond financial losses, including the destruction of business relationships and, in extreme cases, violence.
Ssekito said KACITA has embraced alternative dispute resolution and is increasingly encouraging traders to use mediation rather than immediately resorting to litigation.
KACITA’s concerns come at a time when the Commercial Court is seeking to unlock more than 325 billion shillings tied up in pending commercial disputes.
The Head of the Commercial Division of the High Court, Justice Anna Mugenyi, said the Division has identified 1,424 pending trade, construction and corporate cases, with a combined monetary value of 325.003 billion shillings.
Trade disputes account for the largest share of the targeted caseload, with 1,250 cases, followed by 89 construction disputes and 85 corporate cases.
Justice Mugenyi says the Judiciary is targeting these cases through a Settlement Fortnight aimed at promoting mediation and reducing the backlog.
She says commercial mediation should not be viewed merely as an alternative to litigation but as a strategic tool for unlocking investment, preserving business relationships and promoting economic growth.
The Judiciary’s figures show that mediation is already gaining momentum.
In the fourth quarter of the 2025/2026 financial year, 503 mediations were completed, compared to 247 in the first quarter, representing an increase of more than 100 percent.
For the first time, completed mediations also exceeded registrations during the quarter, with 503 completed against 487 registered cases.
However, only about 21 percent of the completed mediations resulted in full or partial settlements.
While opening the roundtable, Deputy Chief Justice Moses Kazibwe Kawumi said an effective justice system is very important to Uganda’s economic transformation journey because investors and businesses require certainty, predictable contract enforcement and timely resolution of disputes.
Justice Kawumi said prolonged commercial disputes tie up capital, damage business relationships, increase project costs and can undermine investor confidence.
He said the Judiciary is promoting a multi-door courthouse approach, under which disputes can be resolved through litigation, mediation, negotiation, arbitration or conciliation depending on the circumstances.
Justice Kawumi noted that alternative dispute resolution is not intended to replace courts but to ensure that disputes are handled through the most appropriate mechanism.
He called on judges, lawyers, mediators, businesses and government institutions to embrace early intervention and good-faith negotiations.
The state minister for Transport and Works, Siraji Musa Ali, said prolonged construction disputes also have wider economic consequences.
He said a delayed road project is not merely a delayed construction project because it can restrict access to markets, increase transport costs and delay economic opportunities for communities.
The Minister warned that government cannot afford to have billions of shillings tied up in construction disputes while infrastructure projects remain incomplete.
However, he said alternative dispute resolution must not be used as a means of compromising accountability, particularly where public funds are involved.
He said government settlements must be lawful, transparent, evidence-based and demonstrate value for money.
Trade Minister Sanjay Tana said businesses depend on rapid turnover of capital and can be severely affected when disputes remain in court for years.
Tana, who described himself as both a trader and government minister, said prolonged litigation can result in businesses losing customers, accumulating interest on bank loans and eventually collapsing.
He urged the Judiciary to accelerate the disposal of commercial cases while pledging greater cooperation from the Executive.
Justice and Constitutional Affairs Minister Nobert Mao said government is working towards making alternative dispute resolution the default approach before institutions resort to prolonged litigation.
Mao said the government must move away from a culture where public institutions approach disputes in a combat mode and instead embrace mediation where it is appropriate.
He said the Ministry of Justice and Constitutional Affairs is working to institutionalise mediation and strengthen the country’s dispute resolution framework.
The roundtable brings together the Judiciary, government officials, lawyers, mediators and representatives of Uganda’s trade, construction and corporate sectors.
The discussions are expected to inform the Trade, Construction and Corporate Disputes Settlement Fortnight, which will run from August 17th to 28th.
The Judiciary says the initiative is intended not only to reduce the commercial case backlog but also to release capital back into the economy, preserve businesses and jobs, facilitate completion of infrastructure projects and strengthen confidence in Uganda as an investment destination-URN. Give us feedback on this story through our email: kamwokyatimes@gmail.com
