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This blog does not contain legal advice. The legal information is provided for general informational and educational purposes only and is not a substitute for professional advice. Accordingly, before taking any actions based on such information, we encourage you to consult with the appropriate professionals. Authors are liable for any plagiarism and Lawpoint Uganda won`t have liability towards the same.
Where a customer voluntarily authorises a payment after being deceived by fraudsters, the bank is generally not liable provided it faithfully executes the customer's instructions. High Court Rules
The Court held that the Respondent appeared to have fallen victim to an online fraud perpetrated by an individual posing as a Japanese motor vehicle dealer. The Court emphasised that banks are not insurers against their customers' commercial decisions or fraudulent transactions initiated by customers themselves. The Court stated: "The appellant cannot be held liable for the fraud into which the respondent was induced." It further held that once the Bank had processed the cust
Waboga David
6 days ago6 min read
The High Court Rules That Loan Clauses Allowing Banks to Change Interest Rates Unilaterally Are Unenforceable Without Both Parties' Consent
The Court found that any variation must be driven by objective market indicators, such as changes in the Bank of Uganda central bank rate, and must be communicated to the customer in writing beforehand. It held that; "Unilateral adjustments made surreptitiously or restrictively, without explicit contractual triggers or customer notification, constitute a material breach of the banker-customer contract."
Simon Muhindo
Jul 93 min read
If it’s unclear whether a borrower has actually defaulted on a loan agreement, where key terms like repayment timing are disputed, a lender cannot hold the guarantor liable at the summary stage.
The Court further observed that by summarily determining Civil Suit 1120 of 2025, it was likely to preempt the outcome of Civil Suit 535 of 2024 and render it nugatory as stated by the applicants. The Court clarified that if the Civil Division found that the encashment was illegal or wrongful, that finding would directly affect (and likely defeat) the claim in the suit before it. In other words, the suit before this Court was dependent on and intertwined with the issue before
Kiiza John Paul
Apr 16 min read
Court of Appeal Holds That KCB’s Email Assurances on Letters of Credit to a Supplier Created Enforceable Obligations Under the Doctrine of Estoppel, Rendering the Bank Liable for Resulting Losses
This judgment reinforces that financial institutions cannot make representations inducing reliance without accepting liability for consequent losses. The doctrine of estoppel operates to protect commercial parties who reasonably rely on bank undertakings, even where formal loan agreements are not concluded. The case serves as a reminder of the binding nature of informal commitments in commercial transactions and the substantial damages that can flow from breach.
Waboga David
Dec 20, 202511 min read
High Court dismisses claim against Equity Bank for delayed CRB clearance following a consent judgment, affirming that the CRB cannot update records without the bank’s confirmation.
The court clarified that, while Regulations 40(1) and (3) of the Financial Institutions (Credit Reference Bureau) Regulations, 2022, impose on CRBs the duty to investigate complaints within seven working days and require financial institutions to notify CRBs immediately upon receiving such grievances, banks nonetheless retain a critical obligation to submit updated settlement data to the CRB within 30 days of discharge, as affirmed in the testimony of DW1 (the defendant's wit
Waboga David
Sep 23, 20257 min read
High Court has clarified that the FIA does not prohibit persons in Uganda from borrowing from foreign entities, so long as those entities are not operating deposit-taking or regulated “financial ...
The Court referenced a 2020 Bank of Uganda statement, confirming that foreign lenders not accepting deposits from the Ugandan public are not regulated under the FIA. These foreign lenders operate under the laws of their home countries and international contractual principles—not the Ugandan FIA. Therefore, the Court held that there is no law in Uganda forbidding persons from borrowing from entities or institutions outside Uganda, and that such a restriction would be unreasona
Waboga David
Jul 29, 202518 min read
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