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A HANDBOOK
ON
ARBITRATION
IN UGANDA

2023

JAVASON KAMUGISHA

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A HANDBOOK ON ARBITRATION IN UGANDA

© 2023 JAVASON KAMUGISHA

The right of Javason Kamugisha to be identified as the

author of this book has been asserted by them in
accordance with the Copyright and Neighbouring Rights
Act, 2006.

All rights reserved. No part of this publication may be

reproduced or transmitted in whole or in part in any form
or by any means, electronic or mechanical, including
photocopy, recording, or any information storage and
retrieval system, without permission in writing from the
author.

First Edition 2023

ISBN: 978:9913-673-01-3

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First published in Uganda by:
Suigeneris Publishing House
A member of Suigeneris Holdings Ltd
Bukandula Towers
Rubaga Road, Kampala (U), East Africa.
+256 774 694058, +256 700 643472
E-mail: [email protected]
Website: www.suigenerislawapp.com

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 TITLE:
A HANDBOOK ON ARBITRATION IN UGANDA

Rating: ★★★★★

Javason Kamugisha's "Handbook on Arbitration

in Uganda" is an outstanding and authoritative
guide to the world of arbitration within Uganda's
legal framework. This book, authored by one of
the leading experts in the field, is an essential
resource for anyone interested in arbitration or
involved in the legal profession in Uganda.

Kamugisha's expertise in arbitration law is

unquestionable, and it shines through in the
meticulous detail and clarity of this handbook.
From the very beginning, it becomes evident that
the author has an in-depth understanding of the

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intricacies of arbitration, not only in theory but
also in practice.

One of the most commendable aspects of this

handbook is its accessibility. The author
successfully distils complex arbitration concepts
into straightforward language, making it
approachable for readers at various levels of
expertise. Whether you are a law student, a
practicing attorney, or a business professional
seeking insight into arbitration, this book caters to
your needs.

The book covers a broad spectrum of arbitration-

related topics, from the fundamentals of
arbitration agreements to the enforcement of
arbitral awards. Each chapter is expertly

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organized, and the content is enriched with
practical examples and case studies that provide
real-world context.

Furthermore, "Handbook on Arbitration in

Uganda" stands out for its timeliness. Kamugisha
keeps readers up-to-date with the latest changes
in Ugandan arbitration laws and practices,
ensuring the book remains relevant and a
valuable reference.

If there were any room for improvement, it might

be that some readers seeking only a basic
understanding of arbitration may find the depth
of information somewhat overwhelming.
However, this is more a testament to the book's
thoroughness than a drawback.

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In conclusion, Javason Kamugisha's "Handbook
on Arbitration in Uganda" is an indispensable
guide for anyone wishing to explore the world of
arbitration within Uganda's legal context. With its
blend of expert knowledge, clear explanations,
and up-to-date content, this book is a must-have
for students, legal professionals, and individuals
interested in arbitration as a method of dispute
resolution. Kamugisha's work is a remarkable
contribution to the field and will undoubtedly
serve as a cornerstone reference for years to come.

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Table of Contents
PREFACE .................................................................... 20
CHAPTER ONE: INTRODUCTION TO
DISPUTE RESOLUTION IN UGANDA ............... 22
1.1 Introduction .................................................... 23
1.2 Scope of the Text ............................................ 24
1.3 What is Dispute Resolution?....................... 25
1.4 Evolution of Dispute Resolution in Uganda
................................................................................... 26
1.41 Pre-colonial Uganda ............................... 26
1.42 Colonial Uganda ...................................... 29
1.43 Modern-day Independent Uganda ...... 32
1.5 Conclusion ....................................................... 35
CHAPTER TWO: A GENERAL OVERVIEW OF
ALTERNATIVE DISPUTE RESOLUTION 2.1
Introduction........................................................... 37
2.2 What is alternative dispute resolution? ... 38
2.3 Mechanisms of Alternative Dispute
Resolution .............................................................. 42
2.31 Traditional Mechanisms ....................... 43
2.32 Non-traditional Mechanisms ............... 47
2.4 Conclusion ....................................................... 62

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CHAPTER THREE: LEGAL FRAMEWORK FOR
ARBITRATION IN UGANDA ................................. 64
3.1 Introduction .................................................... 65
3.2 The Constitution of the Republic of
Uganda, 1995 ......................................................... 65
3.3 The Judicature Act Cap. 13 ......................... 67
3.4 The Arbitration and Conciliation Act, Cap.
4(ACA)...................................................................... 68
3.5 The Civil Procedure Rules S.I 71-1. .......... 73
3.6 The Tax Procedure Code Act, 2014 ........... 75
3.7 The Companies (Powers of the Registrar)
Regulations, 2016 ................................................. 75
3.8 Conclusion ....................................................... 76
CHAPTER FOUR: INSTITUTIONAL
FRAMEWORK FOR ARBITRATION IN
UGANDA ..................................................................... 78
4.1 Introduction .................................................... 79
4.2 The Arbitrator ................................................ 79
4.21 Appointment by Agreement .................. 81
4.22 Appointment by CADER ........................ 82
4.23 Appointment by an Appointing
Authority............................................................. 83
4.24 Appointment by the High Court .......... 83
4.3 Statutory Institutions ................................... 84

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 4.31 Centre for Arbitration and Dispute
Resolution .......................................................... 84
4.4 Private Institutions ....................................... 88
4.5 International Arbitration
Tribunals/Centres .............................................. 89
4.6 Conclusion ....................................................... 91
CHAPTER FIVE: KEY CONCEPTS IN
ARBITRATION ......................................................... 92
5.1 Introduction .................................................... 93
5.2 The Arbitration Agreement......................... 93
5.3 Seat of Arbitration ......................................... 95
5.4 Law Applicable ............................................... 97
5.5 Arbitrator ........................................................ 98
5.51 Scope of the Arbitrator’s Jurisdiction 98
5.52 Challenging the Arbitrator’s
Appointment or Jurisdiction ......................... 99
5.53 Grounds for Challenging the
Appointment of the Arbitrator .................... 101
5.54 Procedure for Challenging the
Appointment of the Arbitrator .................... 102
5.56 Challenging the Jurisdiction of the
Arbitrator ......................................................... 104
5.56 Procedure for Challenging the
Jurisdiction of the Arbitrator ...................... 106

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 5.6 Court Intervention ...................................... 107
6.1 Introduction .................................................. 111
6.2 The Arbitration Agreement....................... 111
6.3 Request for Arbitration.............................. 114
6.4 Acceptance to Arbitrate.............................. 115
6.5 Pre-Arbitration/Preliminary Conference
................................................................................. 116
6.6 Statements of Claim and Defence and
Reply to the Defence .......................................... 117
6.7 Scheduling Conference .............................. 119
6.8 Hearing .......................................................... 120
6.9 Submissions .................................................. 121
6.10 Settlement ................................................... 122
6.11 Arbitral Awards ......................................... 123
6.111 Correction and Interpretation of an
Award ................................................................ 124
6.112 Additional Award ................................ 125
6.13 Enforcement of an Arbitral Award ....... 126
6.14 Setting aside an Arbitral Award ............ 126
6.15 Appeals ......................................................... 129
6.16 Conclusion .................................................. 131
CHAPTER SEVEN: ENHANCING UGANDA’S
ARBITRATION LANDSCAPE: ............................ 134

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 7.1 A SUMMARY AND RECAP ........................ 134
References................................................................ 186

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PREFACE
This text gives a detailed discussion on Alternative
Dispute Resolution in general and Arbitration in
particular. Today, there is a growing preference for
alternative means of resolving disputes. Amongst all the
recognised alternative mechanisms for resolving disputes,
arbitration has taken centre stage both locally and
internationally. Some of the reasons for its increasing
relevance include the speed with which disputes are
resolved, the flexibility of the procedure, and the relatively
less costs incurred in the process when compared to
litigation in the mainstream judicial court system.
The text looks at the concept of dispute resolution,
alternative dispute resolution and arbitration in
particular. It then discusses the legal and institutional
framework for arbitration. Thereafter, the text discusses
the core concepts of arbitration. The text concludes by
presenting the procedure for arbitration in Uganda.

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 CHAPTER ONE:
INTRODUCTION TO DISPUTE RESOLUTION
IN UGANDA

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1.1 Introduction
Since time immemorial, resolving disputes has been one
of the fundamental pillars of human society and
development. Disagreements, quarrels and
misunderstandings are all key characteristics of human
relationships right from the smallest unit of society – the
family – up to the international stage. Concomitantly,
man’s willingness and ability to resolve conflicts has
inspired development at all stages and is one of the driving
forces for social, political, economic development,
globalisation and international relations.

As a result, over the years, societies have evolved and

come up with structures to resolve conflicts. Today, the
bulk of conflicts in Uganda are resolved through litigation
in the adversarial court system.

For the longest time, since the introduction of formal

courts in the 1900s, the courts have taken the largest
chunk of all disputes in Uganda. Alongside the courts,
alternative means of resolving disputes have

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supplemented the formal courts to alleviate the barriers to
access to justice.1

This text is not intended to look at the weaknesses in the

formal court system as a catalyst for the existence of
alternative means of dispute resolution but it focuses on
the latter as an indispensable sidekick to the former in
increasing access to justice.

1.2 Scope of the Text

This text looks at arbitration as a mechanism of alternative
dispute resolution. It first discusses dispute resolution in
Uganda and its evolution and then give a general
overview of alternative dispute resolution and its
mechanisms. The text then examines the legal framework
and institutional framework for arbitration in Uganda.

It proceeds to analyze the salient principles in arbitration

and the arbitration process.

1
Bart M Katureebe, ‘Building an Effective, Accountable and
Inclusive Judiciary’ (2017)
<http://judiciary.go.ug/files/downloads/CJ%20Keynote%20Address
%20CMJA%20-2017.pdf> accessed 3 March 2023.

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1.3 What is Dispute Resolution?
There is no conclusive definition for the term ‘dispute
resolution’. However, various authors and dictionaries
have come up with several definitions for the term. It is a
term used across public and private law and the definition
itself is not difficult to arrive at. In its most basic form,
dispute resolution is the resolution of a dispute between
two or more parties.2

It is further defined as the process of resolving a dispute or

conflict between different parties.3 The online Termly legal
dictionary defines it as the process of settling disagreements
between parties.4 Furthermore, the Cambridge

2
Phillips Lewis Smith, ‘What Is Dispute Resolution?’ (Phillips Lewis
Smith) <https://plslex.com/what-is-dispute-resolution/> accessed on
22 January 2023.
3
Lawbite,‘What Is Dispute Resolution?’
<https://www.lawbite.co.uk/resources/blog/what-is-dispute-
resolution> accessed on 22 January 2023.
4
Termly, ‘Dispute Resolution’ (Termly) <https://termly.io/legal-
dictionary/dispute-resolution/> accessed 22 January 2023.

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Dictionary (online) defines the term as a set of actions used
by an organisation to solve disagreements.5

It is a term that refers to all processes that are used to

address disputes.

At the heart of the definition of dispute resolution is a

‘process’ or ‘processes’ by which disagreements, conflicts or
misunderstandings between different parties are resolved.
It therefore, includes all methods and approaches from
early resolution through to formal tribunal or court
processes.
1.4 Evolution of Dispute Resolution in Uganda
1.41 Pre-colonial Uganda
Like elsewhere in the world, dispute resolution
mechanisms have always existed among the people of
Uganda. In fact, a report by the British in 1909
commended the high degree of development and
formalization of dispute resolution in the Kingdoms of

5
https:////dictionary.cambridge.org/dictionary/english/dispute-
resolution.

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Buganda, Ankole and Toro.6 It was further observed that
when the British first arrived in Uganda, they found,
particularly in the Kingdom areas, a ‘well-established judicial
system’.7 In chiefdoms for instance Acholi the system of
Mato Oput prevailed; the Itesots had Ailuc; the Langi had
Kayo Cuk; and, the Madi had Tonu ci Koka as established
mechanisms for dispute resolution.

During pre-colonial Uganda, dispute resolution rested on

the same foundation as modern-day alternative dispute
resolution mechanisms in that resolution of disputes was
not adversarial.8 Reconciliation, peace and harmony took
precedence over everything else. Parties could arise from
the entire process and maintain their relationship.9 Any
person who was concerned that a dispute between the
parties threatened the peace of the community could

6
HF Morris, ‘Two Early Surveys of Native Courts in Uganda’ (1967)
11 Journal of African Law 159
<https://www.jstor.org/stable/744861> accessed 22 January 2023.
7
RW Cannon, ‘Law, Bench and Bar in the Protectorate of Uganda’
(1961) 10 The International and Comparative Law Quarterly 877
<https://www.jstor.org/stable/756427> accessed 22 January 2023.
8
Katureebe, B.M.,, ‘Alternative Dispute Resolution in Uganda: An
Evolution towards Effective and Efficient Conflict Management’
(2022).
9
ibid.

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initiate the process.10 The role of resolving disputes was
taken up by the elders or chiefs who acted as arbitrators to
achieve the social goal of maintaining social cohesion.11

Just like arbitration, mediation too is not an alien

mechanism for dispute resolution in Uganda. To this
extent, Justice Geoffrey Kiryabwire states thus; -

“. . . mediation as a dispute resolution mechanism is not all

together new in traditional Ugandan and African society. There
has for centuries been a customary mediation mechanism, using
elders as conciliators/mediators in disputes using procedures
acceptable to the local community but which were not as formal
as those found in the courts.”12

10
Owasanoye, B., ‘Dispute Resolution Mechanisms and
Constitutional Rights in Sub-Saharan Africa’ (UNITAR 2000)
<https://biblioteca.cejamericas.org/bitstream/handle/2015/725/Alter
native-Dispute-Resolution-and-Sub-Saharan-
Africa.pdf?sequence=1&isAllowed=y> accessed 22 January 2023.
11
ibid.
12
Kiryabwire,G., ‘Mediation of Corporate Governance Disputes
through Court Annexed Mediation’ (2007)
<https://www.ifc.org/wps/wcm/connect/e50f6541-0df6-4c87-8c15-
574865e189da/Focus4_Mediation_12.pdf?MOD=AJPERES&CVID
=jtCwurJ> accessed 22 January 2023.

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Furthermore, traditionally elders have always played the
key role of mediators over land disputes as opposed to the
western-style tribunals thatin most aspects are regarded as
not being appreciative of the traditional modes of
handling such disputesas well as the fact that they may
lead to permanent enmity between the warring parties
instead of reconciling their differences.13

1.42 Colonial Uganda

The advent of the British led to the introduction of the
formal British-style adversarial court system. This was
achieved via the Reception Clause of the 1902 Order-in-
Council by whose terms the Common Law and Statutes
of General Application of the United Kingdom gained
applicability in Uganda.14

13
Kakooza, A.,C., ‘Arbitration, Conciliation and Mediation in
Uganda: A Focus on the Practical Aspects’ [2010] SSRN Electronic
Journal <http://www.ssrn.com/abstract=1715664> accessed on 22
January 2023.
14
Busingye, K., , ‘Black Laws Matter: Benedicto Kiwanuka’s
Legacy and the Rule of Law in the New Normal’, 3rd Benedicto
Kiwanuka Memorial Lecture (2020).

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Significantly, colonial laws abolished, modified, and
rigidly regulated the application of indigenous laws.15 By
so doing, they coercively changed the normative
behaviours of Africans, and with that the demise in the
prevalence of indigenous dispute resolution. Moreover,
the intentions and preconditions of the British was a major
ideological and institutional assault on African Social
practice, namely, the attack on ordeal trial and the effect
on the operation of colonial courts.16

Henceforth, although the people clearly understood their

own laws and traditions, these remained relevant only in
the so-called ‘native courts’ - regulating only the most
minor and mundane aspects of their activities - but would
have absolutely no relevance in interactions with the
state.17

Be that as it may, the persisting prevalence of dispute

resolution mechanisms even when pushed to the back of

15
Diala & Kangwa, “Rethinking the interface,” 190.
16
Snyder, F., ‘Rethinking African Customary Law’ (1988) 51 The
Mordern Law Review 252
<https://www.jstor.org/stable/1095985> accessed 22 January 2023.
17
Busingye (n 14).

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the line of dispute resolution is not surprising, considering
that the common law adjudicatory system is widely known
to be fraught with a myriad of shortcomings ranging from
the delays in the process of litigation, the cumbersome
rules of procedure, the cost of litigation, and the physical
inaccessibility of courts.18

Since independence, despite the remarkable growth of

litigation and the formal adversarial court system,
alternative means of resolving disputes have continued to
grow, though slowly, and their full potential to enhance
dispute resolution is yet to be tapped. Just like any other
way of life in Uganda, dispute resolution has been
influenced by contemporary trends, in terms of disputes
resolved, procedures and mechanisms. The ever-
increasing population, economic growth, technological
advancement, as well as globalization have primarily been
the catalyst.

18
Owasanoye (n 10).

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The British also introduced arbitration as a mechanism of
dispute resolution. This was implemented through the
United Kingdom’s Arbitration Acts of 1934 and 1950.19

1.43 Modern-day Independent Uganda

After attaining independence in 1962, the formal court
system in Uganda continued to dominate dispute
resolution, and further relegated the indigenous means for
dispute resolution. This was further compounded by the
enactment of the Magistrates Courts Act, Cap 16 in 1971
and the subsequent abolition of the native courts. This
increased formality in conflict management and
decreased reliance on traditional means of resolving
disputes. In other words, we inherited the colonial-style
court structure which heavily relied on complicated rules
of procedure among other challenges.20

In 1964, Uganda enacted the Arbitration Act, Cap. 55 to

regulate and provide for arbitration as a dispute resolution
mechanism in the country. However, it was replaced by

19
Nasaazi, A., ‘An Inquiry into the Challenges Facing Arbitration
Practice in the Construction Industry in Uganda a Study of Industry
Players in Kampala’.
20
Katureebe (n 8).

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the Arbitration and Conciliation Act Cap 4 in 2000
because the former’s provisions were old, complicated and
outdated.21

The roots of today’s dispute resolution can also be traced

in the Constitution of Republic of Uganda,1995(as
amended). Through the Constitution, the Courts have
progressed and become more appreciative of
developments and new trends in dispute resolution.22
Alternative Dispute Resolution means have thus emerged
in recent times as the preferred mode of resolving disputes,
especially those of a commercial nature.

Article 126 (1) of the Constitution states that judicial

power is derived from the people and that it must be
exercised by the courts in the name of the people ‘and in
conformity with the law and with the values, norms and aspirations
of the people’. Thereafter, Article 126 (2) proceeds to lay
down a number of principles by which the courts should

21
Phillip Bliss Aliker and Michael Mafabi, ‘Uganda - Arbitration
Law and Practice in Africa | ArbitrationLaw.Com’ [2020] Juris Legal
Information <https://arbitrationlaw.com/library/uganda-arbitration-
law-and-practice-africa> accessed 23 January 2023.
22
Cite the relevant Article please…

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be guided, in adjudicating cases of a civil and criminal
nature, these include: i) justice must be done to all
irrespective of their social or economic status; ii) justice
must not be delayed; iii) adequate compensation must be
awarded to victims of wrongs; iv) reconciliation between
parties must be promoted; and iv) substantive justice must
be administered without undue regard to technicalities.

Furthermore, under Article 127, the Constitution gives a

mandate to Parliament to make a law ‘providing for the
participation of the people in the administration of justice
by the courts.’

It is the foregoing that planted the seeds for today’s

alternative dispute resolution. Alternative Dispute
Resolution mechanisms are also now embedded in in the
Arbitration and Conciliation Act Cap 4, Civil Procedure
Act Cap 71, Civil Procedure Rules S.I 71-1, the Land Act
Cap 227, and many others as shall be discussed under
Chapter Four of this text.

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1.5 Conclusion

Dispute resolution is therefore a key pillar of the modern

Ugandan State and greatly influences human behaviour
and interactions. Over the years, right from pre-colonial
Uganda to independent Uganda, dispute resolution has
taken on many forms and processes. However, they all are
premised on resolving conflicts, misunderstandings and
quarrels between parties.

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 CHAPTER TWO:
A GENERAL OVERVIEW OF ALTERNATIVE
DISPUTE RESOLUTION 2.1

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 Introduction

Chapter Two will unpack the concept of Alternative

Dispute Resolution (ADR). As discussed in the previous
chapter, dispute resolution includes all methods and
approaches from early resolution through to formal
tribunal and court process.

The latter deal with the bulk of all disputes. Article 129(1)
of the Republic of Uganda establishes courts of judicature
including the Supreme Court, Court of
Appeal/Constitutional Court, High Court and other
subordinate courts to exercise judicial powers. The focus
of this chapter and this text, in general, are the alternative
means of resolving other than those established under
Article 129. To be more precise, this chapter will look at
the non-litigation means of dispute resolution.

The chapter will first define the term “alternative dispute

resolution.” It will then discuss all the traditional and non-
traditional alternative means of resolving disputes.

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2.2 What is alternative dispute resolution?
The term has no generally accepted abstract or theoretical
definition.23 The word “alternative” means [of one or more
things] available as another possibility or choice. It also
means one or two or more available possibilities. In the
context of dispute resolution, it simply connotes the
existence of other means of resolving disputes other than
the formal court system established under the
Constitution.

The Black’s Law Dictionary defines the term “Alternative

Dispute Resolution” to mean a procedure for settling a
dispute by means other than litigation, such as arbitration
or mediation.24

The term is used to describe a wide variety of dispute

resolution mechanisms that are short of, or alternative to

23
Lieberman, J.,K., and James, F., H., ‘Lessons from the Alternative
Dispute Resolution Movement’ (1986) 53 The University of Chicago
Law Review 424 <https://www.jstor.org/stable/1599646> accessed
23 January 2023.
24
Bryan A. Garner, B.,A., Black’s Law Dictionary, 8 th Edition 2004,
p. 155.

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full-scale court process.25 It is a broad spectrum of
structure processes which does not include litigation
though it may be linked or integrated with litigation, and
which involves the assistance of a neutral third party and
which empowers parties to resolve their own disputes.26

According to Kakooza, ADR is a structured negotiation

process under which the parties to a dispute negotiate
their own settlement with the help of an intermediary who
is a neutral person and trained in the techniques of
ADR.27

ADR is a set of practices and techniques that aim (1) to

permit legal disputes to be resolved outside the courts for
the benefit of all disputants; (2) to reduce the cost of
conventional litigation and the delays to which it is

25
Scott.,B., et al, ‘Alternative Dispute Resolution Practitioners
Guide’ (1998) <https://pdf.usaid.gov/pdf_docs/Pnacp335.pdf>
accessed 22 January 2023.
26
Law Reform Commission of Ireland, ‘Alternative Dispute
Resolution: Mediation and Conciliation’ (November 2010)
<https://www.lawreform.ie/_fileupload/reports/r98adr.pdf> accessed
22 December 2022.
27
Kakooza (n 13).

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ordinarily subject, or (3) to prevent legal disputes that
would otherwise likely to be brought to the courts.28

Alternative dispute resolution is an umbrella term for a

variety of processes which differ in form and application.
The differences include: levels of formality, the presence
of lawyers and other parties, the role of the third party (for
example; mediator) and the legal status of any agreement
reached.29

Notwithstanding the differences, it is possible to identify

some common features in mechanisms relating to the term
alternative dispute resolution. For example, there is a wide
range of ADR processes; ADR excludes litigation; ADR is
a structural process; ADR normally involves the presence
of an impartial and independent third-party; depending
on the ADR process, the third party assists the other two
parties to reach a decision or makes a decision on their
behalf; and, a decision reached in ADR may be binding
or non-binding.30

28
Lieberman and Henry (n 23).
29
Law Reform Commission of Ireland (n 26).
30
Ibid.

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The fundamental premise for all ADR mechanisms is
worthwhile both to reduce costs of resolving disputes and
to improve the quality of the final outcome.31

From the preceding definitions, alternative dispute

resolution has three major components, namely it;

(a) Includes dispute resolution mechanisms

other than courts;
(b) Involves a series of procedures; and
(c) encompasses a neutral third-party whose role
is to help the disputing parties reach a
decision.
The availability or deployment of any particular method
of alternative dispute resolution in any specific case may
depend on a number of factors for example the;

(a) nature of the dispute;

(b) clause relating to alternative dispute resolution in the
agreement between the parties;
(c) availability of persons well versed in the process of
alternative dispute resolution;

31
Lieberman and Henry (n 23).

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 (d) support provided by the legal system of a country to
the alternative dispute resolution methods;
(e) national and international institutional framework for
ADR and last but not least;
(f) availability of necessary infrastructure facilities,
among others.32

All the above factors play a significant role in the selection

of any particular method of resolution of disputes.
2.3 Mechanisms of Alternative Dispute
Resolution
From the definition, it is quite clear that the term ADR
includes a number of processes and mechanisms for
resolving disputes. These are categorized into traditional
and non-traditional mechanisms for dispute resolution.

32
Vinod Agarwal, ‘Alternative Dispute Resolution Methods’
(UNITAR 2000)
<https://biblioteca.cejamericas.org/bitstream/handle/2015/725/Alter
native-Dispute-Resolution-and-Sub-Saharan-
Africa.pdf?sequence=1&isAllowed=y> accessed 22 January 2023.

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2.31 Traditional Mechanisms
These are rituals and customs for resolving disputes that
have since time immemorial been practised among the
peoples of Uganda and are still practised.

2.311 Ailuc
The term ‘Ailuc’ is an Iteso word for the traditional justice
process that aims at holding persons responsible and
punishing them for their wrongs and or criminal actions
in the society, thereby deterring future similar actions.33
Ailuc is also defined as a traditional ritual performed by
the Iteso and Madi people of Uganda used to reconcile
parties formerly in conflict, after full accountability.34

Under this mechanism, the perpetrator tells the victim his

crimes, then sorry and prays for forgiveness.35 Where Culo

33
IGAD, ‘Approaching National Reconciliation in Uganda-
Perspectives on Applicable Justice Systems’
<https://land.igad.int/index.php/documents-
1/countries/uganda/conflict-7/1172-approaching-national-
reconciliation-in-uganda-perspectives-on-applicable-justice-
systems/file>.
34
‘Agreement on Accountability and Reconciliation Between the
Government of Uganda and the Lord’s Resistance Army’
<https://ucdpged.uu.se/peaceagreements/fulltext/Uga%2020070629.
pdf> accessed 15 January 2023.
35
IGAD (n 33).

Page | 43
Kwor is the act of compensation, Kayo Cuk is the ritual of
reconciliation. It is a rite also mediated by livestock.36

2.312 Culo Kwor

This is an Acholi and Langi dispute resolution custom
which involves compensation by one person to the family
of a deceased person to atone for a homicide and includes
any other form of reparation for any other purpose, after
full accountability.37

Culor Kwor literally means ‘compensation for the dead’.

When a crime has been committed, the guilty one is
required to make restitution. Traditionally, this restitution
came in the form of livestock. For instance, someone
accused of murder would, upon the judgment of the
community elders, provide cows from his herd – or,
lacking a herd, from his family’s – to satisfy the demands
of the victim’s family. Up to six head would be provided

36
Teddy Atim and Keith Proctor, ‘Modern Challenges to Traditional
Justice: The Struggle to Deliver Remedy and Reparation in War-
Affected Lango’ <https://fic.tufts.edu/assets/Lango-Traditional-
Justice-10-6-13.pdf> accessed 3 March 2023.
37
‘Agreement on Accountability and Reconciliation Between the
Government of Uganda and the Lord’s Resistance Army’ (n 34).

Page | 44
to the deceased’s next-of-kin. Culo Kwor compensated the
family for the loss of the dead.38

2.313 Kayo Cuk

This refers to the traditional accountability and
reconciliation processes practiced by the Langi
communities after full accountability and reconciliation
have been attained between parties.39

Where Culo Kwor is the act of compensation, Kayo Cuk is

the ritual of reconciliation.40 Notably, the ceremony of
Kayo Cuk is only performed and attended by elders; young
women and children – as well as the offender – are
considered unfit to take part.41

38
Atim and Proctor (n 36).
39
‘Agreement on Accountability and Reconciliation Between the
Government of Uganda and the Lord’s Resistance Army’ (n 34).
40
Atim and Proctor (n 36).
41
ibid.

Page | 45
2.314 Mato Oput
This is an Acholi ritual performed after full accountability
and reconciliation have been attained between parties
formerly in conflict.42

Mato oput assumes that after the cleansing ceremony, the

perpetrator of the crime will spontaneously start
confessing of the crimes he or she committed then the
offenders clan will assume responsibility for the act
committed, and will be ready and able to pay
compensation.43

2.315 Tonu ci Koka

This is a traditional ritual performed by the Madi to
reconcile parties formerly in conflict after full
accountability.44

42
‘Agreement on Accountability and Reconciliation Between the
Government of Uganda and the Lord’s Resistance Army’ (n 34).
43
IGAD (n 33).
44
ADDIN ZOTERO_ITEM CSL_CITATION
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Uganda- Perspectives on Applicable Justice

Page | 46
Tonu ci Koka is a system where by an aggrieved party
approaches a group of elders or a chief or Mukungu to
whom the dispute is reported.45
The punishment is usually in the form of fines (money) and
buying local brew e.g. “Moyo Moyo” “Kwetto”, or
“Wirri”, in case a person stole some thing he or she would
be made to return the property or buy a new one if the
property has been destroyed.46

2.32 Non-traditional Mechanisms

These include procedures that are not originally from
Uganda, some of which have been introduced into our
dispute resolution. The non-traditional ADR roster
includes well-known processes as arbitration, mediation,
conciliation, and negotiation.

systems","URL":"https://land.igad.int/index.php/documents-
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45
IGAD (n 33).
46
ibid.

Page | 47
These processes can be used to settle existing disputes or
to prevent disputes from developing. There are also new
hybrid devices that borrow from courtroom for instance
conducting mini-trial. The roster may also be extended to
include the roles played by certain officials and quasi-
officials (such as courtroom-appointed masters, special
masters and neutral experts) by private persons retained
as neutral parties by ombudsmen and by private judges.
These are discussed below.

2.321 Negotiation
Negotiation is a consensual bargaining process in which
the parties attempt to reach an agreement on a potentially
disputed matter.47 It is a less formal method whereby
parties meet in good faith to discuss and address the
dispute with the goal of reaching a mutually agreeable

tation.json"} IGAD (n 33)., Black’s Law Dictionary, 8th Edition

i

2004, p. 3290.

Page | 48
resolution.48 The parties seek out the best option for each
other which then culminates in a binding agreement.49

2.322 Mediation
Mediation also known as “facilitated negotiation.”
Mediation is a method of dispute resolution involving a
neutral third party who tries to help the disputing parties
reach a mutually agreeable solution.50 It is a process
whereby a neutral third party, called a mediator,
intervenes in a dispute to help the parties amicably and
informally resolve a dispute.51

Mediation is usually non-binding and relatively non-

adversarial, offering parties a methodology to address
disagreements while continuing in an economically viable
relationship, without the cost of litigation.52 The parties

48
Jonas, M., B., ‘The Benefits of Alternate Dispute Resolution for
International Commercial and Intellectual Property Disputes’ (2016)
44 Rutgers Law Record
<https://www.wipo.int/export/sites/www/amc/en/docs/2016_rutgers.
pdf> accessed 22 January 2023.
49
Katureebe (n 8).
50
Garner,B.,A., Black’s Law Dictionary, 8 th Edition 2004, p. 3113.
51
Block (n 48).
52
Ibid.

Page | 49
are assisted to make their own decision without damaging
personal or other business relationships.53

Mediation is usually concluded by parties forming a

memorandum of understanding to concretise their
settlement.

3.323 Conciliation
This is the settlement of a dispute in an agreeable
manner.54 It is also defined as a process in which a neutral
person meets with the parties to a dispute and explores
how the dispute might be resolved; especially a relatively
unstructured method of dispute resolution in which a third
party facilitates communication between parties in an
attempt to help them settle their differences.55

It is an ADR process where an independent third party,

the conciliator, helps people in a dispute to identify the
disputed issues, develop options, consider alternatives and
try to reach an agreement.56 Conciliation is an informal,

53
Katureebe (n 8).
54
Garner,B., A., Black’s Law Dictionary, 8 th Edition 2004, pg 873.
55
ibid.
56
Local Court, New South Wales, ‘Conciliation’ (28 April 2020)
<https://www.localcourt.nsw.gov.au/local-court/alternative-dispute-

Page | 50
flexible approach to resolving complaints – matters can be
settled by an exchange of letters, a telephone negotiation
between the Commission and the people involved, a
telephone conciliation conference or a face-to-face
conciliation conference.57 Conciliation is somewhat
similar to mediation. However, one of the key differences
is that mediation may be binding, especially where papers
form a memorandum of understanding at the conclusion
of proceedings.

3.324 Neutral Evaluation

The Australian Administrative Appeals Tribunal defines
neutral evaluation as; -

“an advisory process in which a Tribunal member, officer of the

Tribunal or another person appointed by the Tribunal, chosen
on the basis of their knowledge of the subject matter, assists the
parties to resolve the dispute by providing a non-binding opinion

resolution/types-of-alternative-dispute-resolution/conciliation.html>
accessed 23 January 2023.
57
Australian Human Rights Commission, ‘Conciliation – How It
Works | Australian Human Rights Commission’
<https://humanrights.gov.au/complaints/complaint-
guides/conciliation-how-it-works> accessed 23 January 2023.

Page | 51
 on the likely outcomes. Neutral Evaluation is used when the
resolution of the conflict requires an evaluation of both the facts
and the law. The opinion may be the subject of a written report
which may be admissible at the hearing.”58

Neutral evaluation is a process in which the parties or their

counsel present their cases to a neutral third party (usually
an experienced and respected lawyer with expertise in the
substantive area of the dispute) who renders a non-binding
reasoned evaluation on the merit of the case.59

It is a dispute resolution technique - at mid-point between

mediation and binding adjudication - that can stand on its
own or be integrated with other dispute resolution

58
Australia Administrative Appeals Tribunal, ‘Neutral Evaluation
Process Model’
<https://www.aat.gov.au/AAT/media/AAT/Files/ADR/Neutral-
Evaluation-process-model.pdf> accessed 23 January 2023.
59
Folberg, J., et alJ ‘Use of ADR California Courts: Findings and
Proposals’ (1992) 26 University of San Francisco Law Review
<https://deliverypdf.ssrn.com/delivery.php?ID=5470220830870900
6812607200211010102404900006504100309206902608409102707
1087080125091098126125118116127113012067005015126125031
1230910030600280310780140690660260080540210621110150060
8711709112103109011500506900507508206706411901009810202
4007093072116&EXT=pdf&INDEX=TRUE> accessed 23 January
2023.

Page | 52
processes such as mediation.60 This process combines
features of both a decision-making and a non-decision-
making process.61 During the process, the neutral third
party may be invited to serve as a mediator or facilitator.

3.325 Fact-finding
Fact-finding means the investigation by an individual or
board of a dispute concerning terms and conditions of
professional service which arose in the course of
professional negotiation, and the submission of a report by
such individual or board to the parties to such dispute
which includes determination of issues involved, findings
of fact regarding such issues and the recommendation of
the fact-finding individual or board for resolution of the
dispute.62

60
Department of Justice Government of Canada, ‘Department of
Justice - Dispute Prevention and Resolution Services’ (1 January
2007)
<https://www.justice.gc.ca/eng/rp-pr/csj-sjc/dprs-sprd/res/drrg-
mrrc/eval.html#ftn3> accessed 23 January 2023.
61
ibid.
62
https://www.lawinsider.com/dictionary/fact-finding.

Page | 53
3.326 Settlement Conferences
The American Bar Association defines a settlement
conference as;

“a meeting in which a judge or magistrate assigned to the case

presides over the process. The purpose of the settlement conference
is to try to settle a case before the hearing or trial. Settlement
conferencing is similar to mediation in that a third-party neutral
assists the parties in exploring settlement options. Settlement
conferences are different from mediation in that settlement
conferences are usually shorter and typically have fewer roles for
participation of the parties or for consideration of non-legal
interests.”63

A settlement conference is an informal, confidential

meeting between the parties in the presence of a judicial
officer (a judge or deputy judge).64

63
American Bar Association, ‘Settlement Conferences’
<https://www.americanbar.org/groups/dispute_resolution/resources/
disputeresolutionprocesses/settlement_conferences/>
accessed 23 January 2023.
64
Ontario Superior Court of Justice, ‘Important Information About
Your Settlement Conference | Superior Court of Justice’
<https://www.ontariocourts.ca/scj/small-claims-court/conference/>
accessed 23 January 2023.

Page | 54
3.327 Adjudication
The term adjudication is often misleading. It is generally
defined as the legal process of resolving a dispute or the
process of judicially deciding a case.65 This definition
connotes a process by which the judge decides the case
before him or her or the manner in which a referee should
decide issues before him or her. This is a narrow definition
of the term.

In the context of alternative dispute resolution,

adjudication should be understood as a standalone dispute
resolution procedure. In this context, therefore,
adjudication can be defined as a process where a neutral
third party gives a decision, which is binding on the parties
in dispute unless or until revised in arbitration or
litigation.66

65
Bryan A. Garner, Black’s Law Dictionary, 8th Edition 2004, pg 127.
66
Nicholas Gould, ‘Adjudication and ADR: An Overview’
FenwickElliott
<https://www.fenwickelliott.com/sites/default/files/nick_gould_-
_adjudication_and_adr_-_an_overview_matrics_paper.indd_.pdf>
accessed 12 January 2023.

Page | 55
3.328 Arbitration
This text will majorly focus on arbitration. It is one of the
oldest methods for the resolution of disputes between
parties and has over the centuries existed in one form or
the other, in every country at all times.67

The Arbitration and Conciliation Act Cap 4 defines

“arbitration” to mean any arbitration whether or not
administered by a domestic or international institution
where there is an arbitration agreement.68 However, this
definition only looks at arbitration in terms of scope. It
does not sufficiently define the technical term
‘arbitration’.

Over the years, the term has been defined by numerous

authors. The general consensus is that arbitration is a
‘process’. Sundra Rajoo defines it as the process by which
a dispute or difference between two or more parties as to
their mutual legal rights and responsibilities is referred to
and determined judicially and with binding effect by the
application of law by one or more persons (the arbitral

67
Agarwal (n 32).
68
Section 2(b).

Page | 56
tribunal) instead of by a court of law.69 According to him,
for arbitration to be invoked, there needs to be a dispute
or difference.

As a method of ADR, Arbitration is a method of dispute

resolution involving one or more neutral third-parties who
are agreed to by the disputing parties and whose decision
is binding.70

In other words, it is the ‘submission of a dispute to one or

more impartial persons for a final binding decision’ on a
dispute.71

Arbitration is a simplified version of a trial involving

limited discovery and streamlined rules of evidence.72
Most significantly, it is a time-bound dispute resolution
procedure.73
According to Sundra Rajoo, one of the distinguishable
features between ADR and other non-binding forms of

69
Sundra Rajoo, Law, Practice and Procedure of Arbitration
(Second Edition, LexisNexis).
70
Garner, B., A., Black’s Law Dictionary, 8th Edition 2004, p. 321.
71
Block (n 48).
72
Supra.
73
Katureebe (n 8).

Page | 57
ADR is that the function of an arbitrator is not to decide
how a dispute can mostly be resolved but rather to
apportion responsibility for that dispute based on the
evidence.74

3.3281 Advantages of Arbitration as against

Litigation
(a) Language
Arbitration gives the parties the liberty to choose their
own language of procedure. Whereas, in Uganda, the
language for courts is in English,75 in arbitration
(especially in international arbitration), the parties may
choose their seat of arbitration to be in a country whose
official language is not English, or one of the parties to the
arbitration agreement may prefer to have a dispute
resolved in a language other than English.
(b) Neutrality of the Arbitral Tribunal
Arbitration allows the parties to not only choose the
arbitral tribunal and the procedure, but to also determine
the number of arbitrators and its composition. In fact, the

74
Rajoo (n 69).
75
Section 88 of the Civil Procedure Act Cap 71.

Page | 58
Arbitration and Conciliation Act allows parties to appoint
an arbitrator from anywhere in the world.76 The power of
the parties to an arbitration agreement to draw their
arbitrators from the four corners of enables the parties to
avoid any national, political, religious, financial or racial
partiality that might be a concern.
(c) Control over procedure
Arbitratoin is a flexible procedure that may adopt both
formal and formal steps. The Arbitration largely allows
parties to not only adopt their procedure of appointing
arbitrators but also on the procedure for the entire arbitral
proceedings.
(d) Cost Factor
The costs for having a dispute resolved and concluded in
Arbitration are much less.
(e) Time Factor
Arbitration resolves and concludes a dispute much faster
than litigation. For instance, the Arbitration and
Conciliation Act gives an arbitral tribunal two months

76
Section 11.

Page | 59
within which to conclude a dispute from the date the
dispute is referred.
3.3282 Types of Arbitration
Arbitration involves a variety of procedures through
which arbitral proceedings may be conducted. These are
largely determined by the parties’ preferences, nature of
the dispute, legislation, seat of arbitration and the
relationship between the parties. These include
(i) Ad hoc Arbitration
Just like the name, this is a type of arbitration which is not
conducted by an institution, where the parties and the
arbitrator will conduct the arbitration according to
procedures agreed by the parties or, in default of an
agreement, as laid down by the arbitrator at a preliminary
meeting when arbitration commences.77 The bulk of
arbitration in Uganda falls under this category.
(ii) Institutional Arbitration
This is arbitration conducted by an institution. The
parties may agree to have a dispute arbitrated by an
arbitral institution instead of an individual. For example,

77
Rajoo (n 69).

Page | 60
in Uganda, the parties may choose to have their dispute
handled by the International Centre for Dispute
Resolution at Kampala (ICAMEK) or Praxis Conflict
Centre.
(iii) Statutory Arbitration
This type of arbitration is also known as ‘compulsory
arbitration.’ It is arbitration which is sanctioned by the
law, or which statute compels parties to undertake. As
shall later be discussed, arbitration is a creature of
contract. Thus, where parties agree to settle their dispute
through arbitration, the courts will be reluctant to
determine any dispute arising between them in respect of
a contract if arbitration has not been utilised. The
Arbitration and Conciliation Act provides to that effect
that a judge or magistrate before whom proceedings
prematurely brought in a matter subject to an arbitration
agreement may refer the matter back to arbitration.78

The foregoing are the commonest forms of arbitration in

Uganda. However, there are other types of arbitration.

78
Section 5(1).

Page | 61
These include; Investor State Arbitration, ‘Look-
sniff’ Arbitration, ‘Flip-flop’ Arbitration,
Documents-Only Arbitration, and Chess Clock
Arbitration, etc.79

2.4 Conclusion
ADR has over the years evolved into a number of
mechanisms and procedures. Each is capable of resolving
a dispute without the need to involve a court. It has been
suggested that ADR should not be seen as a separate entity
from the normal court system but rather should be seen as
an integral part of the entire system.80

Additionally, ADR and the formal justice systems are not

homogeneous, separate and opposed entities and their
relationship is complex and revolving.81 Be that as it may,

79
Rajoo (n 69).
80
Law Reform Commission of Ireland (n 26).
81
Victorian Parliament Law Reform Committee,
‘Alternative Dispute Resolution: Discussion Paper’ (2007)
<https://www.parliament.vic.gov.au/images/stories/committees/lawr
efrom/alternate_dispute/Discussion_paper.pdf> accessed on 23
January 2023.

Page | 62
choosing the appropriate mechanisms will largely depend
on the nature of the dispute, its complexity, the existence
of a dispute resolution agreement, customary practices in
place and many others. The differences notwithstanding,
all ADR mechanisms achieve two central objectives
namely to;

(a) reduce the cost of resolving a dispute and

(b) improve the quality of the final output.

Page | 63
 CHAPTER THREE:
LEGAL FRAMEWORK FOR ARBITRATION IN
UGANDA

Page | 64
3.1 Introduction
Chapter Three analyses the legal framework governing
arbitration in Uganda.
3.2 The Constitution of the Republic of Uganda,
1995
The Constitution is the supreme law in the country and
has binding force on all persons and authorities.82 It
recognizes that judicial power is derived from the people
and must be exercised in accordance with the courts
established therein in the name of the people and in
conformity with law and the values, norms and aspirations
of the people.83

The Constitution establishes five (5) core principles upon

which justice must be served, namely;84

(a) Justice must be done to all irrespective of their

social or economic status;
(b) Justice must not be delayed;

82
Article 2 (1).
83
Article 126 (1).
84
Article 126 (2).

Page | 65
 (c) Adequate compensation must be awarded to
victims of wrong;
(d)Reconciliation between the parties must be
promoted and
(e)Substantive justice must be administered
without undue regard to technicalities.

Chief of the foregoing is the pursuit to promote

reconciliation between parties. This takes centre stage in
arbitration. The overriding objective of arbitration is to
reconcile the parties without substantively severing their
business relationship.

These principles equally apply to arbitration in Uganda

with full force. The Constitution established the Courts of
Judicature namely the Supreme Court, Court of
Appeal/Constitutional Court, High Court and such
subordinate courts as Parliament may by law establish.85

Furthermore, the Constitution places a mandate on

Parliament to make law for the participation of people in

85
Article 129 (1).

Page | 66
the administration of justice by the courts.86 It is therefore
on this premise that Parliament enacted the Arbitration
and Conciliation Act Cap. 4 of 2000 (ACA).

3.3 The Judicature Act Cap. 13

Arbitration is incorporated in the Judicature Act as a
mechanism for resolving disputes. The High Court is
granted powers to refer a dispute, other than a criminal
offence, to an official or special referee/arbitrator for
inquiry and report any question arising in any cause or
matter.87 A report by the referee may be adopted wholly
or partly by the High Court and may be enforced as a
judgment or order of the High Court.88

The High Court may also order for a matter other than a
criminal matter to be tried by an arbitrator agreed to by
the parties.89 The arbitrator is thus deemed to be an officer

86
Article 127.
87
Section 26 (1).
88
Section 26 (2).
89
Section 27.

Page | 67
of the High Court and shall conduct the matter in such
manner as the High Court may direct.90

Any remuneration or fees to be paid to the arbitrator to

whom a matter is referred is determined by the High
Court.91

3.4 The Arbitration and Conciliation Act, Cap.

4(ACA)
As discussed in chapter one arbitration was first
introduced during the colonial era by the British as a
dispute-resolution mechanism and was implemented
through the United Kingdom’s Arbitration Acts of 1934
and 1950.

It was also discussed that in 1964, upon attaining

independence, Uganda proceeded to enact the
Arbitration Act Cap.55 to regulate arbitration in the
country. However, because it contained complicated
provisions and was essentially outdated, it was repealed

90
Section 28.
91
Section 31.

Page | 68
and replaced with the ACA in 2000 to breathe life into
arbitration as a dispute resolution mechanism.

The ACA was therefore enacted “to amend the law

relating to domestic arbitration, international commercial
arbitration and enforcement of foreign arbitral awards,
and to define the law relating to conciliation of disputes.”92

Unlike its predecessor, the ACA is quite progressive and

thus applies to both domestic and international
arbitration.93 To this end, the Act defines arbitration to
mean any arbitration whether or not administered by a
domestic or international institution where there is an
arbitration agreement.94

It also defines an arbitration agreement as one by parties

to submit to arbitration all or certain disputes which have
arisen or which may arise between them in respect of a
defined legal relationship, whether contractual or not.95
The ACA proceeds to give the form for such arbitration

93
Section 1.
94
Section 2 (1)(b).
95
Section 2 (1)(c).

Page | 69
agreement, that is; it may either be a clause in a contract
referring the dispute to arbitration or a separate
standalone agreement;96 and, it must be in writing.97

Furthermore, the ACA prescribes the extent of court

intervention in arbitral proceedings and states that except
as provided therein, no court has the power to intervene
in matters governed by it.98

The courts have respected this position and it has been

held that where a case has commenced in court and it is
established that the matter was meant for arbitration, the
court respects the mandatory provision of the Act to this
effect and will always order the matter be referred to
arbitration.99

The ACA also notably covers procedural aspects of

arbitration such as the appointment of the arbitrator;100

96
Section 3 (1).
97
Section 3 (2).
98
Section 9.
99
East African Development Bank v. Ziwa Horticultural Exporters
Ltd (High Court Miscellaneous Application 1048 of 2000) [2000]
UGCommC 7 (19 October 2000).
100
Section 11.

Page | 70
rules of procedure;101 place of arbitration;102
commencement of arbitral proceedings;103 the language
of the proceedings;104 statements of claim and statements
of defence;105 hearing and submissions; and the arbitral
award,106 among others.

Part III of the ACA covers enforcement of New York

Convention Awards. That Act defines such award as an
arbitral award made, in pursuance of an arbitration
agreement, in the territory of a State (other than Uganda)
which is a party to the Convention on the Recognition
and Enforcement of Foreign Arbitral Awards (the New
York Convention).107

The ACA recognizes foreign awards pursuant to the New

York Convention as binding and enforceable in
Uganda.108

101
Section 19.
102
Section 20.
103
Section 21.
104
Section 22.
105
Section 23.
106
Section 31.
107
Section 39 (1).
108
Section 41.

Page | 71
Under this part of the ACA, a judicial authority may, at
the request of one of the party, refer the parties to
arbitration where the parties have made an agreement
pursuant to the New York Convention.109

The ACA also recognizes arbitral awards made under the

Convention on Settlement of Investment Disputes
between States and Nationals of other States (ICSID
Convention).110

Another milestone of the ACA is the establishment of the

Centre for Arbitration and Dispute Resolution (CADER)
as a statutory centre for alternative dispute resolution in
Uganda. Some of its functions include appointing
arbitrators;111 making appropriate rules, administrative
procedures and forms for the effective performance of the
arbitration process;112 establishing a code of ethics for
arbitrators;113 qualifying and accrediting arbitrators;114

109
Section 40.
110
Part IV.
111
Section 11
112
Section 68 (c).
113
Section 68 (d).
114
Section 68 (e).

Page | 72
and establishing and administering a schedule of fees for
arbitrators,115 among others.

In a nutshell, Kakooza explains that the ACA is

instrumental in three (3) major ways;

“(a) It ensures the realization of the goal of increased party

autonomy and provision of appropriate and user-friendly
rules of procedure to guide parties;
(b)It creates an adaptable framework for arbitration
tribunals to operate under as well as other default methods
in the absence of the parties’ own agreements and
(c)It paves way for the advancement of equality and
fairness in the whole process.”116

3.5 The Civil Procedure Rules S.I 71-1.

The Rules consider alternative dispute resolution as a
means of resolving a dispute. They focus on the principal

115
Section 68 (j).
116
Anthony Conrad Kakooza, ‘Arbitration, Conciliation and
Mediation in Uganda: A Focus on the Practical Aspects’ [2010]
SSRN Electronic Journal <http://www.ssrn.com/abstract=1715664>
accessed 22 December 2022.

Page | 73
basis of arbitration being the maintenance of mutual
respect for each other’s interests between the parties.117
To this end, the Rules provide that court shall hold a
scheduling conference to, inter alia, consider the
possibility of settling the dispute through mediation,
arbitration, or any other means.118

Additionally, where the parties fail to settle their

differences, the court may order alternative dispute
resolution before a member of the bar or bench if it is of
the view that the case has a good potential for
settlement.119

Furthermore, the Rules provide for Court-annexed

Arbitration. Where in any civil suit the parties interested
agree that the matter be referred to arbitration, they may,
before judgment is pronounced, apply to court for the
matter to be referred to arbitration.120

117
ibid.
118
Order XII rule 1 (1).
119
Order XII rule 2 (1).
120
Order XLVII rule 1 (1).

Page | 74
3.6 The Tax Procedure Code Act, 2014
Under the Tax Procedure Code Act, a taxpayer who is
dissatisfied with an Objection Decision of the
Commissioner may apply to the Commissioner to resolve
the dispute using alternative dispute resolution means,
including arbitration.121

However, this option is yet to be explored as Regulations

for Alternative Dispute Resolution procedures for tax
purposes are yet to be enacted.122

3.7 The Companies (Powers of the Registrar)

Regulations, 2016
Under these regulations, the Registrar of Companies has
the power to refer a dispute before him or her to
mediation or other alternative dispute resolution
mechanism.123

121
Section 24 (11).
122
Section 24 (12).
123
Regulation 34 (1).

Page | 75
Any agreement or settlement therefrom is binding on the
parties and the Registrar shall register and record.124

3.8 Conclusion
Arbitration sits at the high table for recognized dispute
resolution mechanisms in the country. It draws its
legitimacy right from the Constitution through to other
subsidiary legislation. Chief among these is the Arbitration
and Conciliation Act, Cap 4 which regulates the conduct
of arbitration in Uganda. Other laws such as the
Judicature Act, Civil Procedure Rules, Tax Procedure
Code Act, and the Companies (Powers of the Registrar)
Regulations see it as a means to an end.

124
Regulation 34 (2).

Page | 76
Page | 77
 CHAPTER FOUR:
INSTITUTIONAL FRAMEWORK FOR
ARBITRATION IN UGANDA

Page | 78
4.1 Introduction
Chapter Four discusses the institutional framework for
arbitration in Uganda. The chapter first assesses the
concept of the arbitrator as provided for under the
Arbitration and Conciliation Act Cap. 4. It then looks at
the institutions offering arbitration. These are categorized
into statutory institutions, private institutions and
international arbitration tribunals.

4.2 The Arbitrator

The Arbitration and Conciliation Act Cap. 4 does not
define who an arbitrator is. It However defines an arbitral
tribunal to mean a sole arbitrator or a panel of arbitrators
and includes an umpire.125 It further defines umpire to
mean a third arbitrator appointed by two arbitrators
appointed by the parties.126

An arbitrator is defined as a neutral person who resolves

disputes between parties, especially by means of formal

125
Section 2 (e).
126
Section 2 (j).

Page | 79
arbitration.127 In other words, an arbitrator is a neutral
third party appointed by agreement by disputing parties,
or by a court, whatever the case may be, to give a binding
decision on the dispute.

The Arbitration and Conciliation Act Cap. 4 is silent on

the qualification requirements for one to be an arbitrator.
It however provides that no person shall be precluded by
reason of his or her nationality from acting as an arbitrator
unless otherwise agreed by the parties.128

There are basically three ways through which an

arbitrator may be appointed namely by; -

(a) agreement;
(b)the Centre for Arbitration and Dispute
Resolution;
(c)an Appointing Authority and
(d)the High Court.

127
Bryan A. Garner, Black’s Law Dictionary, 8 th Edition 2004, pg
323.
128
Section 11 (1).

Page | 80
4.21 Appointment by Agreement
The first mode is by agreement between the parties.
Arbitration is premised on the law of contract and as such
the parties are at liberty to choose the arbitrator or
number of arbitrators.129 Where the parties fail to agree
on the number of arbitrators, there shall be one
arbitrator.130

Furthermore, parties are free to agree on a procedure of

appointing the arbitrator or arbitrators.131 Where the
parties have not agreed on a procedure for appointing the
arbitrator(s), where the number of arbitrators is three (3),
each party shall appoint one arbitrator and the two
arbitrators appointed shall appoint a third arbitrator.132 In
an arbitration with one (1) arbitrator, the parties shall
agree on the person to be appointed.133

129
Section 10 (1).
130
Section 10 (2).
131
Section 11 (2).
132
Section 11 (2)(a).
133
Section 11 (2)(b).

Page | 81
4.22 Appointment by CADER
The Centre for Arbitration and Dispute Resolution is
granted powers under the Arbitration and Conciliation
Act Cap. 4 to appoint arbitrators. Where the parties fail
to agree on an arbitrator, one of them may apply to
CADER and it shall make the appointment.134

In addition, where the parties have agreed on a procedure

for appointing the arbitrator(s) and a party fails to act
under that procedure or where two arbitrators fail to
appoint a third arbitrator or a third, including an
institution, fails to perform any function entrusted to it
under that procedure, any party may apply to CADER to
secure compliance with the procedure agreed upon by the
parties.135

In both instances above, the decision by CADER is final

and is not subject to appeal.136 However, CADER is
cautioned to have due regard to any qualifications

134
Section 11 (3).
135
Section 11 (4).
136
Section 11 (5).

Page | 82
required of an arbitrator by the agreement of the
parties.137

4.23 Appointment by an Appointing Authority

An appointing authority is an institution, body or person
appointed by the Minister for Justice and Constitutional
Affairs to perform the functions of appointing arbitrators
and conciliators. Such an institution or body may be a
public or private institution. Once clothed with such
status, the appointing authority, on an application by one
of the parties or both may appoint an arbitrator(s).138

4.24 Appointment by the High Court

The High Court has the power to appoint an arbitrator
under the Judicature Act Cap. 13.139 For the High Court
to make such an appointment, it will give due regard to
the consent of the parties to go to arbitration;140 whether
the matter is one that requires any prolonged examination
of documents or any scientific or legal investigation which,
in the opinion of the High Court, cannot be conducted by

137
Section 11 (6).
138
Section 11.
139
Section 27.
140
Section 27 (a).

Page | 83
the High Court;141 or whether the question in dispute
consists wholly or partly of accounts.142

4.3 Statutory Institutions

This section will look at those centres or institutions with
a statutory mandate to offer arbitration services and
dispute resolution in general.

4.31 Centre for Arbitration and Dispute

Resolution
Chapter Three briefly discusses the establishment of the
Centre for Arbitration and Dispute Resolution in
Uganda. This part comprehensively analyses CADER’s
administrative structure, powers, responsibilities and
other related matters.

As already discussed in the preceding chapter, CADER is

a body corporate established under the Arbitration and
Conciliation Act Cap. 4.143

141
Section 27 (b).
142
Section 27 (c).
143
Section 67.

Page | 84
4.311 Administration
CADER is governed by a Council comprising the
chairperson, an executive director, the president of the
Commercial Court, three (3) representatives from existing
private sector organisations and a representative of the
Uganda Law Society.144

With the exception of the executive director, the other

members serve for a tenure of three (3) years and are
eligible for reappointment.145

Collectively, the board is responsible for the formulation

and implementation of policy for the CADER.146

In addition to the board, CADER has a secretariat

comprising the executive director and other persons as the
council may from time to time.147 The executive director
is the administrative officer of CADER and is thus
responsible for its day-to-day operations.148

144
Section 69.
145
Section 69 (4).
146
Section 69 (2).
147
Section 70 (1).
148
Section 70 (2).

Page | 85
4.312 Functions of the Centre for Arbitration
and Dispute Resolution
In the context of arbitration, the ACA gives CADER a
wide range of responsibilities as follows;

CADER is an appointing authority and thus has power to

appoint arbitrators and conciliators.149 In addition, it is
responsible for establishing a roster of competent and
qualified arbitrators.150

It is responsible for making rules, administrative

procedures and forms for the effective performance of
arbitration.151 In this regard, CADER makes available to
individuals and their legal counsel at no charge pre-
drafted model arbitration and mediation clauses for
inclusion in their contracts.152

As far as ethics in arbitration are concerned, CADER is

responsible for establishing and enforcing a code of ethics

149
Section 68 (a)
150
Section 68 (h).
151
Section 68 (c).
152
Kakooza (n 116).

Page | 86
for arbitrators in Uganda.153 In addition, it is responsible
for qualifying and accrediting arbitrators.154

CADER is enjoined to foster ADR capacity building in

the country. Thus, it has the mandate to establish
appropriate qualifications for institutions, bodies and
persons eligible for appointment.155 In addition, it has a
responsibility to avail skills, training and to promote the
use of ADR for its stakeholders.156

Furthermore, CADER has a mandate to establish and

administer a schedule of fees for arbitrators. Its fees
schedule can be relied on when charging for various
services including fees that are charged by the individual
CADER registered arbitrators.157

CADER’s functions extend to those specified in the

United Nations Commission on International Trade Law
(UNCITRAL) Arbitration Rules.158

153
Section 68 (d).
154
Section 68 (e).
155
Section 68 (g).
156
Section 68 (k).
157
Kakooza (n 116).
158
Section 68 (b).

Page | 87
Last but not least, CADER is responsible for facilitating
the certification, registration and authentication of
arbitration awards.159

4.4 Private Institutions

This category can further be subdivided into arbitration
centres that have been given appointing authority and
standalone tribunals.

The first category includes institutions that do not have

standing arbitral tribunals but upon receiving a dispute,
they have the power to appoint any suitable arbitrator(s)
available to handle the matter. An example of such
institutions includes the International Centre for
Arbitration and Mediation in Kampala (ICAMEK) which
was issued with an instrument to appoint arbitrators in
2019.

The second category of private institutions – standalone

tribunals or arbitrators – comprises institutions that have
arbitral tribunals on-site or in other words are arbitrators

159
Section 68 (i).

Page | 88
themselves. Under this category, there are individuals who
by virtue of training and experience have been certified to
be arbitrators. In addition, this category also includes
private arbitration centres that have on-site arbitrators.
The first such institution was Praxis Conflict Centre which
was founded by the retired Chief Justice Bart Katureebe
in 2021. Instead of appointing an arbitrator, these
institutions are directly appointed by the disputants or
court to resolve a dispute.

4.5 International Arbitration Tribunals/Centres

One of the biggest achievements of the Arbitration and
Conciliation Act Cap.4 was the introduction of an
international aspect of arbitration in Uganda.

World over arbitration is recognized as the preferred

dispute resolution mechanism for international
commercial disputes. Under the ACA, arbitral awards
made in a country or State other than Uganda that is a
party to the United Nations Convention on the
Recognition and Enforcement of Foreign Arbitral Awards

Page | 89
(the New York Convention) are binding on the parties and
enforceable in Uganda.160

Similarly, arbitral awards made pursuant to the ICSID

Convention are also enforceable in Uganda.161

Therefore, based on this foundation parties in Uganda are

at liberty to refer a dispute to an international arbitration
tribunal centre or tribunal so long as it is in a country
which is state party to either the New York Convention or
the ICSID Convention.

Some of the internationally recognized arbitration centres

include; -

(a)The Chartered Institute of Arbitrators

(CIARB);
(b)The International Court of Arbitration;
(c)The International Chamber of Commerce;
(d)The London Court of International Arbitration
and

160
Section 43.
161
Section 47.

Page | 90
 (e)The World Intellectual Property Organization
Arbitration and Mediation Centre, etc.

4.6 Conclusion
The Arbitration and Conciliation Act Cap. 4 has made it
possible for the arbitration landscape in Uganda to have a
variety of institutions. These institutions exist in the public
and private domains. Parties also have the option to have
their disputes handled by an International Tribunal and
the arbitral award therefrom may be enforced Uganda as
though it was made domestically.

Page | 91
 CHAPTER FIVE:
KEY CONCEPTS IN ARBITRATION

Page | 92
5.1 Introduction
This chapter examines some of the key concepts which
govern arbitration in Uganda.

5.2 The Arbitration Agreement

The Arbitration and Conciliation Act Cap 4 defines an
Arbitration Agreement as an agreement by the parties to
submit to arbitration all or certain disputes which have
arisen or which may arise between them in respect of a
defined legal relationship, whether contractual or not.

In other words, the arbitration agreement is the election

by the parties to a contract to settle out of court, through
arbitration, any dispute that may arise in connection with
the contract.

In interpreting a similar definition in the Malaysian

Arbitration Act 2005, Sundra Rajoo observed that an
arbitration agreement or clause essentially has four
elements.162 These include;

162
Rajoo (n 69).

Page | 93
 (a) The first, which is common to all agreements, is to
produce mandatory consequences for the parties;

(b) The second is to exclude the intervention of state

courts in the settlement of the disputes;

(c) The third is to give powers to the arbitrators to

resolve the disputes likely to arise between the
parties; and,

(d) The fourth is to permit the putting in place of a

procedure leading under the best conditions of
efficiency and rapidity to the rendering of an
award that is susceptible of judicial enforcement.

An arbitration agreement takes two forms. First, it may be

in the form of a clause in a contract.163 Where it is a clause
in an agreement, the clause is treated as an agreement
independent of the other terms of the contract.164

The arbitration agreement may also be a separate

agreement.165 This is usually the case where parties do not

163
Section 3(1).
164
Section 16 (1)(a).
165
Section 3(1).

Page | 94
have an arbitration clause in the underlying contract.
According to the Arbitration and Conciliation Act, where
in any contract there is any reference to a document
containing an arbitration clause, the clause so referenced
shall constitute an arbitration agreement if the contract is
in writing and the reference is such as to make the
arbitration clause part of the contract.166

At all times, the arbitration agreement must be in

writing.167 It is considered to be in writing if it is contained
in a document signed by the parties, or it is contained in
an exchange of letters, a telex, a telegram or other means
of telecommunication which provides a record of the
agreement.168

5.3 Seat of Arbitration

The Arbitration and Conciliation Act does not define ‘seat
of arbitration’, however, borrowing from the English
Arbitration Act 1996, “the seat of arbitration” means the
juridical seat of the arbitration designated by the parties

166
Section 3(4).
167
Section 3(2).
168
Section 3(3).

Page | 95
to the arbitration agreement, or by an arbitral or other
institution or person vested by the parties with powers in
that regard, or by the arbitral tribunal if so authorised by
the parties, or determined, in the absence of any such
designation, having regard to the parties’ agreement and
all the relevant circumstances.169

The seat of arbitration is the home of the arbitration, and

will generally determine the procedural law governing the
arbitration (lex arbitri).170 The procedural law mostly
privdes a “gap-filling” mechanism, absent parties’
agreement or specific provisions in the applicable
arbitration rules.171

It also determines which court has supervisory jurisdiction

over the arbitration.172 For example, in Uganda, the High

169
Section 3.
170
‘The Seat of Arbitration & Its Significance – Legal
Developments’ <https://www.legal500.com/developments/thought-
leadership/the-seat-of-arbitration-its-significance/> accessed 5
March 2023.
171
‘Seat of Arbitration’
<https://jusmundi.com/en/document/publication/en-seat-of-
arbitration> accessed 5 March 2023.
172
‘The Seat of Arbitration & Its Significance – Legal
Developments’ (n 170).

Page | 96
Court has supervisory powers over all arbitration in
Uganda.

It should be noted that although the seat of arbitration is

defined as a location, it is in fact a legal construct, with
limited geographical relevance.173

5.4 Law Applicable

In most contracts, parties usually elect the law applicable,
or the law which will govern their relationship. Thus, it is
this law that governs the arbitration agreement and
arbitral proceedings.

The law governing the arbitration agreement will often

decide matters of formal and substantive validity,
formation, termination, interpretation, assignment and
waiver of the arbitration agreement.174 For instance,
where parties elect that the law governing their agreement
be the law of the Republic of Uganda, their arbitral

173
‘Seat of Arbitration’ (n 171).
174
‘The Law Governing the Arbitration Agreement: Why We Need
It and How to Deal with It’
<https://www.ibanet.org/article/699fd751-0bd4-4a15-bf84-
e2542a8219c9> accessed 5 March 2023.

Page | 97
proceedings shall be regulated by the Arbitration and
Conciliation Act.

Where the law applicable is not specified, the Choice-of-

law rule will be applied to find it.175 Thus, where the
parties omit to choose the law applicable, the law of the
country most proximate to the agreement will be applied.

5.5 Arbitrator
The Arbitration and Conciliation uses the terms
“arbitrator” and “arbitral tribunal” interchangeably. It
defines the terms “arbitral tribunal” to mean a sole
arbitrator or a panel of arbitrators.176

5.51 Scope of the Arbitrator’s Jurisdiction

Arbitrators generally have authority over only those
parties who have agreed to arbitrate and those disputes
that fall within the terms of the parties’ written arbitration
agreement.

The Arbitrator also has the power to make orders for

interim remedies including requesting any party to

175
ibid.
176
Section 2 (1)(e).

Page | 98
provide appropriate security in connection with such
measures.177 It should be noted that this power is subject
to the agreement of the parties. However, the Arbitrator
is presumed to possess it where the parties do not agree.

5.52 Challenging the Arbitrator’s Appointment

or Jurisdiction
In arbitration, the arbitrator is expected to be impartial
and competent to determine the dispute between the
parties. In addition, the arbitrator is expected to treat the
parties equally.178 That is the hallmark of dispute
resolution. In Re Application for Recusal of Owiny-
Dollo CJ Miscellaneous Application No. 3 of 2021,
Owiny-Dollo, CJ observed that;

The cornerstone of any just and legal system is the

impartial adjudication of disputes which come before
the courts and their tribunals.

Thus, it is a requirement under the Arbitration and

Conciliation Act Cap 4 that where a person is approached
in connection with his/her possible appointment as an

177
Section 17(1).
178
Section 18.

Page | 99
arbitrator, he or she is mandated to disclose any
circumstances likely to give rise to justifiable doubts as to
his or her impartiality or independence.179

The Act does not define what “justifiable doubts” means.

However, because the arbitrator plays the role of a judicial
officer, justifiable doubts would amount to anything that
would ordinarily entitle a judicial officer to recuse himself
or herself in a matter.

Whereas the Constitution (Recusal of Judicial Officers)

(Practice) Directions, 2019, are not binding on
Arbitrators, the principles therein can be applied to
arbitration in establishing the circumstances when the
arbitrator’s impartiality is in question.

According to the foregoing Practice Directions, a judicial

officer may recuse himself/herself from any proceedings
in which his or her impartiality will reasonably be in

179
Section 12(1)

Page | 100
question.180 The grounds under which the judicial officer
may recuse himself or herself are;181

(a) Where he or she has personal knowledge of the

disputed facts concerning the proceedings; or,
(b) Where a member of the judicial officer’s family is
either representing a litigant, is a party, or has an
interest in the outcome of the matter in dispute
which is the subject of the proceedings.
Therefore, upon being approached, the arbitrator is
obligated to disclose to the parties any circumstances that
would impede his or her ability to act impartially in the
matter.

5.53 Grounds for Challenging the Appointment of

the Arbitrator
According to the Arbitration and Conciliation Act, an
arbitrator can only be challenged on two grounds,
namely;182

180
Paragraph 5.
181
Paragraph 6(2).
182
Section 12 (2).

Page | 101
 (a) If there are circumstances that give rise to
justifiable doubts as to his or her impartiality and
independence; or,
(b) If the Arbitrator does not possess qualifications
agreed to by the parties.
Challenging the appointment of the arbitrator may be
done by either party to a dispute. Under the Arbitration
and Conciliation Act, a party may challenge an Arbitrator
appointed by him or her, or in whose appointment that
party has participated, only for reasons of which he or she
becomes aware after the appointment.

Therefore, appointing the arbitrator does not bar a party

from challenging the arbitrator’s jurisdiction.

5.54 Procedure for Challenging the Appointment

of the Arbitrator
The general rule is that the parties are free to agree on a
procedure for challenging an Arbitrator.183

However, in practice parties do not often agree on a

procedure as it is not always not contemplated that the

183
Section 13(1).

Page | 102
arbitrator’s appointment would come into question. In the
absence of agreement on procedure, the arbitration
provides a procedure.

Upon becoming aware of the Arbitrator or composition

of the arbitral tribunal or any circumstances that give rise
to justifiable doubts that the arbitrator will act impartially,
the party that intends to challenge the jurisdiction of the
Arbitrator must within fifteen (15) days after becoming
aware send a written statement of the reasons for the
challenge to the appointment authority or to the
arbitrator.184 Copy of the statement must be served on the
opposite party as well.

Upon receipt of the written statement, the arbitrator who

is being challenged may withdraw from the matter. Where
the arbitrator voluntarily withdraws, the parties may
proceed to appoint another arbitrator or the appointing
authority may appoint another arbitrator.

The other party may also agree on the challenge to the

arbitrator’s appointment and in which case, the parties

184
Section 13(2).

Page | 103
may agree on the appointment of another arbitrator,
irrespective of whether the arbitrator whose jurisdiction
has been challenged has withdrawn or has refused to
withdraw from the matter.185

In the event that the opposite party refuses to change the

arbitrator or does not find the grounds for challenging
meritorious and the arbitrator refuses to withdraw from
the matter, either the appointing authority, or the
arbitrator himself or herself must decide on the challenge
with a period of thirty (30) days from the date of receipt of
the written statement.186

5.56 Challenging the Jurisdiction of the

Arbitrator
As aforesaid, the arbitrator derives his jurisdiction from
his appointment. It is also the principle that the
Arbitrator’s jurisdiction is only restricted to matters arising
from or in connection to the contract.

However, even after appointment, a respondent is not

precluded from challenging the jurisdiction of the

185
Section 13(2).
186
Section 13(2).

Page | 104
arbitrator.187 A party can also raise an objection on the
validity of the arbitration agreement.188

5.551 Kompetenz-Kompetenz
The literal interpretation of ‘Kompetenz-Kompetenz’ is
“jurisdiction on jurisdiction.”189 It is where the Arbitrator
rules on his/her own authority to arbitrate in a matter.190
After examining the relevant facts and the law, an
arbitrator may either decide to hear the case or decline to
give the matter any further consideration.

Under the Arbitration and Conciliation Act, the

Arbitrator may rule on his or her own jurisdiction.191 This
jurisdiction extends to ruling on any objections with
respect to the existence or validity of the Arbitration
Agreement.192

187
Section 16(2).
188
Section 16(1).
189
William W Park, ‘Determining an Arbitrator’s Jurisdiction:
Timing and Finality in American Law’ (2008) 8 34.
190
Jules J Justin, ‘ARBITRABILITY AND THE ARBITRATOR’S
JURISDICTION’ 40.
191
Section 16 (1).
192
Ibid.

Page | 105
5.56 Procedure for Challenging the Jurisdiction
of the Arbitrator
A Respondent who wishes to challenge the jurisdiction of
the arbitrator can do so only on two occasions.

The first, he or she may raise the plea that the arbitrator
does not have jurisdiction at the time of submitting the
statement of defence.193

The respondent may also raise the plea that the arbitrator
is exceeding the scope of his or her authority during the
arbitral proceedings.194

Be that as it may, the arbitrator may also admit a later

plea if it considers the delay justified.195

Where a plea is raised, the arbitrator must rule on it as a

preliminary question or objection.196 Where he or she
rules that he or she has jurisdiction, he or she may

193
Section 16(2).
194
Section 16(3).
195
Section 16(4).
196
Section 16(5).

Page | 106
continue with the proceedings and make an arbitral
award.197

A party aggrieved by the Arbitrator’s decision (whether

Claimant or Respondent) has a right of appeal to the High
Court within thirty (30) days of receiving notice of the
arbitrator’s decision.198 It should be noted that the
decision of the High Court is final and is not subject to
further appeal.199

5.6 Court Intervention

The general rule is that no court can intervene in arbitral
proceedings in Uganda except where expressly provided
for by the Arbitration and Conciliation Act.

Under the Arbitration and Conciliation Act, a party to an

arbitration agreement may apply to the High Court,
before or during arbitral proceedings, for an interim
measure of protection.200 However, where a party applies
to the High Court for an injunction or other interim order

197
Section 16(8).
198
Section 16(6).
199
Section 16(7).
200
Section 6(1).

Page | 107
and the arbitrator has already ruled on any matter
relevant to the application, the High Court shall treat the
ruling as conclusive for purposes of the application.201

Where an arbitrator has ruled on whether he or she has

jurisdiction in a matter where his or her jurisdiction has
been questioned, the aggrieved party may appeal to the
High Court to decide the matter.202 Be that as it may,
during the pendency of such an application, the arbitrator
may continue with the arbitral proceedings and even give
an arbitral award.203

Furthermore, the High Court may assist an arbitrator in

taking evidence at the request of the arbitrator or a party
to the proceedings with the approval of the arbitrator.204

201
Section 6(2).
202
Section 16(6).
203
Section 16(8).
204
Section 27.

Page | 108
Page | 109
 CHAPTER SIX:
THE PROCEDURE FOR ARBITRATION IN
UGANDA

Page | 110
6.1 Introduction
Chapter Six examines the roadmap for arbitration in
Uganda. It gives a practitioner a guide on the procedure
for arbitration. Thus, the chapter covers the entire arbitral
process right from the arbitration agreement up to setting
aside an arbitral award. It also covers the necessary
documents, witnesses, fees, hearings, and every key step in
the arbitral process.

6.2 The Arbitration Agreement

This is the first step in arbitration. Under the agreement,
the parties may designate an arbitrator(s) and the
procedure for appointment. It may refer to arbitration a
future dispute or an existing dispute.

As already discussed in chapter five, an arbitration

agreement is one by which parties submit to arbitration all
or certain disputes which have arisen or which may arise
between them in respect of a defined legal relationship
whether contractual or not.205

205
Section 2 (c) Arbitration and Conciliation Act Cap 4.

Page | 111
The agreement may either be a clause in a contract
referring a dispute to arbitration or it may be a standalone
contract. In both, as has been established in chapter five,
for purposes of arbitration, the arbitration clause is a
separate agreement from the underlying contract.

This is known as the ‘Doctrine of Separability’. It refers to the

severability or autonomy of the arbitration clause.
According to Sundra Rajoo, the doctrine treats the
arbitration clause and the contract which incorporates it
as two distinct contracts.206 The arbitration agreement is
different from the contract itself.

The commonest form of agreement is the arbitration

clause. Parties will usually only enter into a standalone
arbitration contract as an addendum to an underlying
contract or as a separate contract altogether.

The arbitration clause may take many forms however, the

commonest form of the arbitration clause is expressed as
follows;

206
Rajoo (n 69).

Page | 112
 (a) For a future dispute; -

Any dispute arising out of or in connection with

this contract, including any question regarding
its validity or termination shall be referred to
or finally resolved by arbitration.

(b) For an existing dispute; -

A dispute having arisen between the parties

concerning…(nature of dispute), the parties
hereby agree that the dispute shall be referred
to and finally resolved by arbitration.

In addition to the foregoing, the parties may also include

in their clause the number of arbitrators, the rules
governing the arbitration, the seat of arbitration, the
language to be used in the arbitral proceedings, and the
governing law.

Page | 113
6.3 Request for Arbitration
Arbitral proceedings commence on the date on which a
request from the Claimant to refer the dispute to
arbitration is received by the Respondent.207

Once the parties have agreed to invoke the arbitration

clause, they will proceed to appoint an arbitrator. Where
the procedure for appointing an arbitrator is not provided
for in the contract, the parties are free to agree on a
procedure of appointing the arbitrator(s).

The parties will have two options. They may either apply
to an appointing authority to nominate the arbitrator(s),
or they may simply request the intended arbitrator to
arbitrate the matter.

In an arbitration with a panel of three arbitrators, each

party will appoint one arbitrator, and the two arbitrators
so appointed will appoint the third arbitrator.208

207
Section 21 Arbitration and Conciliation Act Cap. 4.
208
Section 11 (2)(a) Arbitration and Conciliation Act Cap 4.

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Where the parties seek to rely on a single arbitrator, the
parties will agree on the person to be appointed.209

With regard to the latter, the party invoking arbitral

proceedings will formally request the intended arbitrator
to arbitrate the dispute. The adverse party should be
copied in any correspondence to appoint an arbitrator.

6.4 Acceptance to Arbitrate

Upon receipt of an appointment letter, the arbitrator will
either accept to arbitrate or reject the appointment. In any
case, he or she ought to respond to the parties within a
reasonable time and notify them of his or her decision.

Where the arbitrator appointed refuses to conduct arbitral

proceedings, the parties are at liberty to appoint another
arbitrator.

On the other hand, where the arbitrator so appointed

accepts to officiate over the arbitral proceedings, he or she
will invite the parties to a pre-arbitration meeting.

209
Section 11 (2)(b) Arbitration and Conciliation Act Cap 4.

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6.5 Pre-Arbitration/Preliminary Conference
The pre-arbitration conference, also known as the “pre-
arbitration meeting” or the “pre-arbitration hearing”, is
the first interface between the arbitrator(s) and the
disputants. It should ideally be convened as soon as
practicable after the arbitrator(s) has been appointed while
affording the parties adequate time to prepare.210

The purpose of the pre-arbitration conference is to allow

the parties and the arbitrator to agree on the terms of
reference. The terms of reference will usually include the
arbitration fees and the payment plan. Arbitrators will
usually have their own unique payment plans.

However, most arbitrators will request the parties to pay

the fees in three instalments; the first before the scheduling
conference, the second before the hearing and the third
before the delivery of the award.

210
American Arbitration Association - International Centre for
Dispute Resolution, ‘Preliminary Hearing Practice Guide’
<https://go.adr.org/rs/294-SFS-
516/images/Preliminary_Hearing_Practice_Guide.pdf> accessed 26
January 2023.

Page | 116
At the pre-arbitration conference, the parties will give the
arbitrator(s) a synopsis of their dispute and will avail him
or her with the arbitration agreement and underlying
contract and any other correspondences or documents
giving rise to the dispute.

The parties and the arbitrator(s) will also agree on dates

for filing and exchanging documents, as well as date for
the Scheduling Conference.

6.6 Statements of Claim and Defence and Reply

to the Defence
The Claimant will within the time agreed at the pre-
arbitration meeting file a Statement of Claim with the
arbitrator(s) and serve the same to the Respondent.
Therein, the Claimant will state the facts supporting his or
her claim, the points at issue and the relief(s) sought.211

Where the Claimant fails to communicate his or her

Statement of Claim, the arbitrator has power to terminate
the arbitral proceedings.212

211
Section 23 (1) Arbitration and Conciliation Act Cap. 4.
212
Section 25 (a) Arbitration and Conciliation Act Cap. 4.

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Upon receipt of the Claimant’s claim, the Respondent will
within the time agreed at the pre-arbitration conference,
file a Statement of Defence with the arbitrator(s) and serve
the same on the Claimant.213 Where the Respondent fails
to communicate his or her Statement of Defence, the
arbitrator will continue the proceedings without treating
the failure as an admission of the Claimant’s
allegations.214

The Claimant will have a right to file a Reply to the

Defence within such time as the parties would have agreed
at the pre-arbitration conference.215

The parties may choose to accompany their statements

with all documents they consider relevant or may add a
reference to the documents.216

It should be noted that the parties will have a right to

amend or supplement their claims or defences during the

213
Section 23 (1) Arbitration and Conciliation Act Cap. 4.
214
Section 23 (b) Arbitration and Conciliation Act Cap. 4.
215
Section 23 (2) Arbitration and Conciliation Act Cap. 4.
216
Section 23 (3) Arbitration and Conciliation Act Cap.4.

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course of the arbitral proceedings unless the arbitrator(s)
decide otherwise.217

6.7 Scheduling Conference

The arbitrator(s) will convene a scheduling conference at
such time as would have been agreed at the pre-
arbitration conference.

The purpose of the scheduling conference is to agree on

the roadmap for the remainder of the arbitral
proceedings. The parties will thus agree on the hearing
date(s), the timelines within which to file written
submissions and date of the delivery of the award.

The parties will also agree whether they intend to call any
witness, and if so how many. They will thus agree on the
timelines within which to file witness statements.

The parties, together with the arbitrator(s) may also agree

on whether to engage any expert(s). Where it is agreed that
an expert be engaged, the arbitrator may appoint one or
more experts to report to him/her on specific issues to be

217
Section 23 (4) Arbitration and Conciliation Act Cap. 4.

Page | 119
determined by him or her.218 Additionally, the arbitrator
may require a party to furnish any relevant information to
the expert.219

6.8 Hearing
Evidence in arbitration is presented orally at the hearing.
The parties will examine, cross-examine and re-examine
their witnesses on the hearing date. The arbitrator has the
power to administer oaths to the parties and witness
hearings.220

Where the parties had engaged an expert in the arbitral

proceedings, the such expert will be required to file and
deliver a written or oral report.221 He will also be required
to be present at the hearing and the parties will have an
opportunity to question him or her. The expert may also
present expert witnesses to testify on the points at issue.222

218
Section 26 (1)(a) Arbitration and Conciliation Act Cap 4.
219
Section 2 (1)(b) Arbitration and Conciliation Act Cap. 4.
220
Section 24 (3) Arbitration and Conciliation Act Cap. 4.
221
Section 26 (2) Arbitration and Conciliation Act Cap. 4.
222
Ibid.

Page | 120
The arbitrator or a party with the approval of the
arbitrator may request court to assist in taking evidence
and court shall do so in accordance with its rules of taking
evidence.223

Should a party fail to appear at the hearing or to produce

documentary evidence, the arbitrator will continue the
proceedings and make the award on the evidence before
him or her.224

6.9 Submissions

The arbitrator has the discretion to decide whether to

have oral arguments or written submissions.225 The
parties may also agree on a mode of making
submissions.226

The written submissions are usually submitted after the

hearing date. Accordingly, the arbitrator will designate

223
Section 27 Arbitration and Conciliation Act Cap. 4.
224
Section 25 © Arbitration and Conciliation Act Cap. 4.
225
Section 24 (1) Arbitration and Conciliation Act Cap. 4.
226
ibid.

Page | 121
timelines within which the parties will be expected to file
their submissions.

6.10 Settlement
The Arbitration and Conciliation Act Cap. 4 envisages a
situation where the parties may settle during the arbitral
proceedings.

When that happens, the arbitrator will terminate the

proceedings and if requested by the parties, he or she will
record the settlement in the form of an arbitral award on
the agreed terms.227

An arbitral award on agreed terms has the same status and

effect as any other arbitral award on the substance of the
dispute.228

227
Section 30 (1) Arbitration and Conciliation Act Cap. 4.
228
Section 30 (3) Arbitration and Conciliation Act Cap.4.

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6.11 Arbitral Awards
The expression “arbitral award” means any award of an
arbitral tribunal and includes an interim arbitral award.229
An arbitral award must be in writing and must be signed
by the arbitrator(s).230

The arbitrator(s) will make the award within two months

after entering on the reference or after having been called
on to act.231 However, the arbitrator has the power to
enlarge the time within which to deliver the award.232

The arbitral award will state the reasons upon which it is

based except where the parties have agreed that no
reasons should be given or where it is an arbitral award on
agreed terms.233

Furthermore, the award must state the date of delivery

and the place of arbitration, and the award will be deemed

229
Section 2 (d) Arbitration and Conciliation Act Cap .4.
230
Section 31 (4) Arbitration and Conciliation Act Cap .4.
231
Section 31 (1) Arbitration and Conciliation Act Cap .4.
232
Ibid.
233
Section 31 (6) Arbitration and Conciliation Act Cap. 4.

Page | 123
to have been made at that place.234 Once it is made, a
signed copy must be delivered to each of the parties.235

6.111 Correction and Interpretation of an Award

A party may within fourteen (14) days after receiving the
award request the arbitrator to correct in the arbitral
award any computational errors, any clerical or
typographical errors or any other errors of similar
nature.236

A party may also, if agreed by both parties, request the

arbitrator to give an interpretation of a specific point or
part of the arbitral award.237

If the arbitrator considers the request to be justified, he or

she will make the corrections or give the interpretation
within fourteen (14) days after receipt of the request and
the interpretation will form part of the arbitral award.238

234
Section 31 (7) Arbitration and Conciliation Act Cap .4.
235
Section 31 (8) Arbitration and Conciliation Act Cap .4.
236
Section 33 (1)(a) Arbitration and Conciliation Act Cap. 4.
237
Section 33 (1)(b) Arbitration and Conciliation Act Cap. 4.
238
Section 33 (2) Arbitration and Conciliation Act Cap .4.

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The arbitrator has the discretion to extend the time within
which to make corrections or an interpretation.239

The arbitrator may also correct any error on his or her

own initiative within thirty (30) days after the date of
delivery of the award.240

6.112 Additional Award

Where there are any claims presented in the arbitral
proceedings but omitted from the arbitral award, a party
may within thirty (30) days after receiving the arbitral
award, request the arbitrator to make an additional
arbitral award.

If the arbitrator considers the request to be justified, he or

she will make the additional arbitral award within thirty
(30) days.241

239
Section 33 (6) Arbitration and Conciliation Act Cap. 4.
240
Section 33 (3) Arbitration and Conciliation Act Cap. 4.
241
Section 33 (5) Arbitration and Conciliation Act Cap. 4.

Page | 125
6.13 Enforcement of an Arbitral Award
The arbitral award will be recognized as binding on the
parties.242 To enforce it, a party will have to write an
application to the High Court to enforce the award.243

The application will be accompanied by a duly

authenticated original arbitral award or a certified copy of
it, and the original arbitration agreement or a certified
copy of it.244

If the award is not made in English, in addition to the

foregoing, the application must be accompanied by a
certified translation of the award into English.245

6.14 Setting aside an Arbitral Award

An arbitral award can only be appealed on a point of law
and is subject to agreement between the parties.246 Other

242
Section 35 (1) Arbitration and Conciliation Act Cap. 4.
243
Ibid.
244
Section 35 (2) Arbitration and Conciliation Act Cap .4.
245
Section 35 (3) Arbitration and Conciliation Act Cap. 4.
246
Section 38 (1) Arbitration and Conciliation Act Cap. 4.

Page | 126
than that, an arbitral award can only be set aside by the
High Court.247

For the High Court to set aside an arbitral award, the

applicant must prove any of the following that ;

(a)he or she was under some incapacity;

a) (b)arbitration agreement is not valid under the law
to which the parties have subjected it;
b) (c)That he or she was not given proper notice of
the appointment of the arbitrator;
c) (d)he or she was not given proper notice of the
arbitral proceedings;
d) (e)he or she was unable to present his or her case;
e) (f)the arbitral award deals with a dispute not
contemplated by or not falling within the terms of
reference to arbitration or contains decisions on
matters beyond the scope of the reference to
arbitration. (However, where decisions referred to
arbitration and those that weren’t, only the latter
will be set aside);

247
Section 34 (1) Arbitration and Conciliation Act Cap. 4.

Page | 127
 (g) the composition of the arbitral tribunal or the
arbitral proceedings was not in accordance with
the agreement (This will not apply to a situation
where the agreement was in conflict with the
ACA);
f) (h) the arbitral award was procured by corruption,
fraud or undue means or there was evident
partiality or corruption in one or more of the
arbitrators; or
(i) the arbitral award is not in accordance with the
ACA.248

The High Court will also set aside an arbitral award if the
subject matter of the dispute is not capable of settlement
by arbitration under the law of Uganda, or if the award is
in conflict with the public policy of Uganda.249

An application to set aside an arbitral award must not be

made after one month has elapsed from the date on which

248
Section 34 (2)(a) Arbitration and Conciliation Act Cap. 4.
249
Section 34 (2)(b) Arbitration and Conciliation Act Cap. 4.

Page | 128
it was delivered, or from the date on which an additional
award or corrections have been made.250

Where the time for making an application to set aside the

award has expired or where the application has been
refused, the award will be enforced in the same manner as
if it were a decree of the High Court.251

6.15 Appeals
Unlike other proceedings, in arbitration, being a creature
of contract, the parties have to agree first before an appeal
is preferred. However, where an arbitral award has been
varied, the award as varied shall have effect as if it were
the award of the arbitral tribunal concerned.

(a) Appeals to the High Court

Where a question of law arises, the parties may either

apply to the High Court if such question of law arises
during the course of the arbitration, or they may appeal
the decision of the arbitral tribunal to the High Court.252

250
Section 34 (3) Arbitration and Conciliation Act Cap. 4.
251
Section 36 Arbitration and Conciliation Act Cap. 4.
252
Section 38(1).

Page | 129
Upon receipt of the application or appeal, the High Court
has powers to either determine the question of law arising,
or to confirm, vary or set aside the arbitral award or remit
the matter to the arbitral tribunal for reconsideration.253
The timelines and procedure for appeals to the High
Court are governed by the Civil Procedure Rule S.I. 71-1 as
amended.

(b) Appeals to the Court of Appeal

The parties may also agree to have the decision of the

High Court appealed to the Court of Appeal and subject
to grant of leave to appeal by the High Court or special
level to appeal by the Court of Appeal.254 Appeals to the
High Court are governed by the Judicature (Court of Appeal)
Rules.

It should be noted that the Arbitration and Conciliation

Act is not instructive on whether parties have a right of
appeal to the Supreme Court. By providing for only up to
the Court of Appeal, one might assume that the Court of

253
Section 38(2).
254
Section 38(3).

Page | 130
Appeal is the final appellate forum for decisions arising
from arbitral tribunal. A similar situation existed in the
Labour Disputes (Settlement and Arbitration) Act, 2006.
Section 22 of the same expressly grants a dissatisfied party
from a decision of the Industrial Court a right of appeal to
the Court of Appeal, and the Act does not mention an
appeal to the Supreme Court anywhere. In interpreting
this provision, the Supreme Court of Uganda in the case
of DFCU Bank Ltd v Donna Kamuli Supreme
Court Civil Application No. 29 of 2019, held

that in matters arising from the Industrial Court, the

Court of Appeal is the final appellate court.

This therefore, remains a lacuna therein and one that is

subject to the interpretation of Court.

6.16 Conclusion
Although the Arbitration and Conciliation Act Cap.4 has
no regulations to give a comprehensive procedure for
arbitration as with most laws, it is quite flexible and it
enables disputants and arbitrators to come up with
appropriate and efficient procedures.

Page | 131
In itself, the ACA acts as a template for the procedure and
does not restrict parties to rigid and complicated
processes. Throughout, it upholds the parties’ freedom of
contract that is the backbone of arbitration.

Page | 132
Page | 133
 CHAPTER SEVEN:
ENHANCING UGANDA’S ARBITRATION
LANDSCAPE:

Page | 134
7.1 A SUMMARY AND RECAP

Arbitration is the procedure whereby parties in the dispute

refer the issue to a party for a resolution and agree to be
bound by the resulting decision, rather than taking the
decision to ordinary courts.

Since no dispute mechanism can stand alone as an island,

the courts should only become involved in support of the
process - subject to the arbitral Acts that provide them
with exclusive jurisdiction - where this is necessary in
order to avoid conflicting decisions. However, the power
of the courts to aid arbitration in granting such measures
is limited by Council Regulation (EC) 44/2001 of the
European Union, of which England is a member.

In international arbitration, timely application and

enforcement of interim (provisional) measures have a
substantial effect on the possibility of the enforcement of a
final arbitration award, especially when issues relating to
the protection of assets or evidence arise before or during
the course of proceedings.

Page | 135
Section 2(b)255 defines arbitration as any arbitration
whether or not administered by a domestic or
international institution where there is an arbitration
agreement.

Arbitration is the most pronounced method used in

Uganda in resolving commercial and other disputes such
as land matters, this is supported by sections 26 to 32 of
the Judicature Act cap 13,

Negotiation

It is any form of communication between two or more

people for the purpose of arriving at a mutually agreeable
solution. There are two styles of negotiating. that is the
competitive bargaining style and there is the cooperative
bargaining style of hard bargaining and soft bargaining.

1. Legal Framework:

255
Arbitration and conciliation act chapter 4

Page | 136
In Uganda, arbitration is governed by the Arbitration and
Conciliation Act, of 2000 (Chapter 4 of the Laws of
Uganda). This Act provides a comprehensive legal
framework for both domestic and international
arbitration.

2. Arbitration Agreements:

Under Ugandan law, parties can enter into arbitration

agreements either as a standalone contract or as a clause
within another agreement. Section 4 of the Arbitration
and Conciliation Act recognizes the validity of arbitration
agreements and their enforceability, consistent with
international best practices.

3. Arbitrators:

Arbitrators in Uganda are typically chosen by the parties

themselves or through an arbitration institution if
specified in the agreement. The Act allows for the

Page | 137
appointment of arbitrators with relevant expertise to
ensure a fair and informed decision-making process.

4. Arbitration Proceedings:

The Arbitration and Conciliation Act provides for the

procedural framework of arbitration. This includes the
conduct of hearings, submission of evidence, examination
of witnesses, and issuance of subpoenas. The Act also
empowers arbitrators to make procedural decisions to
ensure a fair and efficient process.

5. Arbitration Awards:

Arbitration awards issued in Uganda are final and binding

on the parties. Section 26 of the Act explicitly states that
an arbitral award shall not be subject to appeal except on
questions of law. This limited scope of judicial review is in
line with international arbitration principles.

Page | 138
6. Advantages of Arbitration in Uganda:

- Efficiency: Arbitration in Uganda is often faster and

more streamlined than litigation in the court system,
which can be congested and slow-moving.

- Expertise: Parties can select arbitrators with specific

expertise in the relevant field, which can lead to more
informed decisions.

- Confidentiality: Arbitration proceedings are typically

private, providing parties with a level of confidentiality
that may not be available in open court hearings.

- Enforceability: Uganda is a signatory to the New York

Convention on the Recognition and Enforcement of
Foreign Arbitral Awards, making it easier to enforce
arbitration awards both domestically and internationally.

7. Limitations of Arbitration in Uganda:

- Limited Judicial Review: While arbitration awards can

be challenged on questions of law, this is a limited ground

Page | 139
for review, and courts in Uganda generally uphold
arbitration awards.

- Cost: Arbitration can still involve significant costs,

especially in complex cases with high-value disputes.

- Lack of Precedent: Arbitration decisions do not create

legal precedents in Uganda, which can make it
challenging to establish consistent legal principles.

Arbitration in Uganda is governed by a well-established

legal framework that aligns with international best
practices. It offers parties an efficient and effective
alternative to traditional court litigation. However, parties
should carefully consider the potential advantages and
limitations of arbitration in their specific circumstances
and ensure that their arbitration agreements are well-
drafted and legally enforceable.

Arbitration is a method of alternative dispute resolution

(ADR) in which parties involved in a legal dispute agree
to submit their case to a neutral third party, known as an
arbitrator, instead of going to court. Arbitration has

Page | 140
gained popularity as a means of resolving various types of
disputes, including commercial, labor, and consumer
disputes.

1. Definition of Arbitration:

Arbitration is a consensual process where disputing parties

voluntarily agree to have their case heard by an impartial
arbitrator, whose decision, known as an arbitration
award, is binding and enforceable in a court of law.

2. Key Elements of Arbitration:

- Arbitration Agreement: Parties must have a valid

arbitration agreement in place, which can be a standalone
contract or a clause within another agreement. The
agreement outlines the rules, procedures, and jurisdiction
of the arbitration.

- Arbitrator: The arbitrator is a neutral third party

chosen by the parties or through an arbitration institution.

Page | 141
The arbitrator's role is to hear evidence, apply the law,
and render a decision.

- Arbitration Proceedings: The arbitration process

involves hearings where parties present evidence,
witnesses, and arguments. The arbitrator may issue
subpoenas, administer oaths, and make procedural
rulings.

- Arbitration Award: At the conclusion of the

proceedings, the arbitrator issues a written decision
known as an arbitration award. This award is final and
binding on the parties.

- The United Nations Commission on International

Trade Law (UNCITRAL): UNCITRAL is a key
authority for international commercial arbitration. It has
developed the UNCITRAL Model Law on International
Commercial Arbitration, which serves as a template for
national arbitration laws worldwide.

- International Arbitration Institutions: Various

international arbitration institutions, such as the
International Chamber of Commerce (ICC), the London

Page | 142
Court of International Arbitration (LCIA), and the
American Arbitration Association (AAA), have their own
rules and procedures for conducting arbitration. These
rules often incorporate international best practices.

4. Advantages of Arbitration:

- Speed: Arbitration proceedings are typically faster

than court litigation due to fewer formalities and
streamlined procedures.

- Confidentiality: Arbitration can offer greater

confidentiality as compared to public court hearings.

- Expertise: Parties can select arbitrators with expertise

in the subject matter of the dispute, ensuring a more
informed decision.

- Enforceability: Arbitration awards are generally easier

to enforce internationally through the New York
Convention, which has been adopted by over 160
countries.

Page | 143
5. Limitations of Arbitration:

- Limited Judicial Review: Courts have limited authority

to review arbitration awards, which may restrict the ability
to appeal unfavorable decisions.

- Cost: While arbitration can be more cost-effective than

litigation, it can still be expensive, especially for complex
disputes.

- Lack of Precedent: Arbitration decisions do not create

legal precedents, making it challenging to establish
consistent legal principles.

In conclusion, arbitration is a widely recognized and

established method of dispute resolution with various
advantages and limitations. It is governed by both
national and international laws, with the FAA and
UNCITRAL serving as significant authorities. When
parties enter into arbitration agreements, they must
carefully consider the implications and benefits of this
alternative to traditional court litigation.

Page | 144
Arbitration is a popular method of dispute resolution, but
it is not without its challenges.

Challenges associated with arbitration

1. Costs:

- Arbitrator Fees and Administrative Costs: One of the

primary challenges of arbitration is the cost. Parties must
pay arbitrator fees, which can be significant, especially if
the dispute is complex and lengthy. Additionally, there
may be administrative fees charged by the arbitration
institution chosen to oversee the process.

- Legal Representation: Parties often hire lawyers to

represent them in arbitration, adding to the overall
expense.

2. Limited Judicial Review:

Page | 145
 - Arbitration awards are typically final and binding, with
limited grounds for judicial review. This can be a
challenge if parties believe the arbitrator made a legal
error or there was misconduct during the arbitration
process. The limited ability to appeal arbitration awards
can be frustrating for parties seeking a different outcome.

3. Lack of Precedent:

- Unlike court decisions, arbitration awards do not

create legal precedents. This lack of precedent can make
it difficult to establish consistent legal principles and
predict outcomes in future cases.

4. Enforceability Issues:

- While arbitration awards are generally easier to

enforce internationally through conventions like the New
York Convention, there can still be challenges in
enforcing awards in certain jurisdictions, especially if a
country has reservations or objections to the convention.

5. Confidentiality Concerns:

Page | 146
 - While confidentiality can be an advantage in
arbitration, it can also be a challenge. In some cases,
parties may prefer a more public forum to expose
wrongdoing or set an example. The confidentiality of
arbitration can limit transparency and accountability.

6. Selection of Arbitrators:

- Choosing the right arbitrator can be a challenge.

Parties must agree on an arbitrator, and if they cannot,
the selection process can be time-consuming and costly.
Additionally, arbitrators may have biases or conflicts of
interest that parties are not aware of initially.

7. Time Delays:

- While arbitration is generally faster than court

litigation, it can still be subject to delays. Scheduling
conflicts, procedural disputes, and the need for extensive
document production can all contribute to delays in the
arbitration process.

8. Complexity of Commercial Arbitration:

Page | 147
 - In commercial arbitration, especially in international
contexts, the complexity of the issues involved can be a
significant challenge. Different legal systems, languages,
and cultural differences may complicate the process.

9. Non-Compliance with Awards:

- Even if an arbitration award is issued, there is no

guarantee that the losing party will comply voluntarily.
Enforcing an award through the courts can be a time-
consuming and costly process.

10. Arbitrator Bias or Misconduct:

- While arbitrators are expected to be neutral and

impartial, there can be instances of bias or misconduct.
Parties may challenge an arbitrator's integrity or question
their decisions, leading to disputes within the arbitration
itself.

11. Accessibility and Inequality of Resources:

- Parties with limited resources may find it challenging

to engage in arbitration, particularly if they are up against

Page | 148
well-funded opponents. This can result in an inequality of
resources and influence in the arbitration process.

In conclusion, arbitration offers an efficient alternative

to litigation, but it is not without its challenges. Parties
should carefully consider these challenges when choosing
arbitration as a dispute resolution method and take steps
to mitigate them through well-drafted arbitration
agreements, careful selection of arbitrators, and strategic
planning.

The future of arbitration is likely to be influenced by

several key trends and developments. While it's
challenging to predict the future with certainty, I can
identify some directions in which arbitration is evolving:

1. Increased Use of Technology:

- Technology is likely to play an even more significant

role in arbitration. Online arbitration platforms, virtual
hearings, and the use of artificial intelligence for

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document review and legal research are already becoming
more common. These innovations can make arbitration
more efficient and cost-effective.

2. Globalization of Arbitration:

- Arbitration is increasingly being used for international

disputes, driven by globalization and cross-border
business transactions. As international trade and
investment continue to grow, the demand for
international arbitration is expected to rise.

3. Specialized Arbitration Fields:

- Arbitration is expanding into specialized fields, such as

technology, intellectual property, and environmental
disputes. As new industries emerge and existing ones
evolve, arbitration will adapt to address the unique
challenges presented by these sectors.

4. Environmental and Sustainability Concerns:

- Environmental and sustainability considerations are

becoming more important in various areas, including
business and investment. Arbitration may see an increased

Page | 150
focus on disputes related to environmental regulations,
climate change, and sustainability issues.

5. Diversity and Inclusion:

- There is growing recognition of the need for diversity

and inclusion in arbitration panels. Efforts to promote
diversity among arbitrators and address issues of gender
and racial bias are likely to continue shaping the future of
arbitration.

6. Ethical Considerations:

- Ethical considerations in arbitration, including

conflicts of interest and transparency, are expected to
remain at the forefront. Stakeholders are pushing for
greater transparency in the selection of arbitrators and the
disclosure of conflicts.

7. Hybrid Processes:

- Hybrid dispute resolution processes that combine

elements of arbitration, mediation, and other ADR
methods are emerging. These processes can provide

Page | 151
parties with more flexible and tailored options for
resolving disputes.

8. Legal Frameworks and Reforms:

- Governments and international organizations may

continue to refine and update the legal frameworks that
govern arbitration. These changes can impact the
enforceability of awards and the procedural rules
governing the process.

9. Challenges to Arbitration:

- Challenges to arbitration, such as concerns about costs,

limited judicial review, and issues related to transparency
and accountability, may lead to ongoing debates and
reforms within the field.

10. Public Perception and Trust:

- Maintaining public trust in arbitration is essential.

Arbitration institutions and practitioners will need to
address concerns about fairness, impartiality, and
accessibility to ensure that arbitration remains a trusted
means of dispute resolution.

Page | 152
In summary, the future of arbitration is likely to be
characterized by technological advancements, increased
specialization, a globalized landscape, and a continued
focus on ethical considerations and diversity. While
arbitration will continue to be a valuable tool for resolving
disputes, it may evolve to address new challenges and
adapt to the changing needs of businesses and individuals
in an increasingly interconnected world.

In the Ugandan context, the way forward for arbitration

involves addressing several challenges while building on
existing strengths. One of the most significant challenges
is ensuring that arbitration remains an effective and
accessible means of dispute resolution, especially for
domestic parties. Here are the greatest challenges and
possible solutions for the future of arbitration in Uganda:

Greatest Challenge: Access to Arbitration

Page | 153
Challenge: Arbitration in Uganda has historically been
perceived as an expensive and complex process, which has
limited its accessibility to smaller businesses and
individuals.

Possible Solutions:

1. Cost-Effective Arbitration Services:

- Establishing cost-effective arbitration services or

mechanisms, such as simplified arbitration procedures or
expedited processes for smaller claims, can make
arbitration more accessible to a wider range of parties.

2. Promotion and Education:

- Conduct awareness campaigns and educational

programs to inform the public, lawyers, and businesses
about the benefits of arbitration, including its potential
cost savings and efficiency compared to court litigation.

Page | 154
3. Fee Structures:

- Arbitrator fees and administrative costs can be a

significant barrier. Implementing standardized fee
structures or fee caps, particularly for smaller disputes, can
help reduce the cost burden.

4. Pro Bono and Low-Cost Panels:

- Encourage experienced arbitrators to offer their

services on a pro bono or reduced fee basis for certain
cases, especially those involving public interest issues or
vulnerable parties.

7.2 Greatest Challenge: Enforcement of Awards

Challenge: Ensuring the effective enforcement of

arbitration awards in Uganda, especially in cases where
the losing party is unwilling to comply, can be challenging.

Page | 155
Possible Solutions:

1. Strengthen Legal Framework:

- Continuously improve and update the legal framework

governing arbitration, ensuring that it aligns with
international best practices and provides a clear
mechanism for enforcing awards.

2. Awareness of the New York Convention:

- Promote awareness and understanding of the New

York Convention on the Recognition and Enforcement of
Foreign Arbitral Awards, which simplifies the
enforcement of international arbitration awards in
Uganda.

3. Streamlined Enforcement Process:

- Establish a more efficient and expedited process for the

enforcement of arbitration awards through the courts,
reducing delays and potential costs for the winning party.

Page | 156
Greatest Challenge: Lack of Specialization

Challenge: Arbitration in Uganda has not been as

specialized as it could be, leading to a potential lack of
expertise in certain sectors, such as technology,
intellectual property, and environmental matters.

Possible Solutions:

1. Training and Education:

- Provide specialized training and education for

arbitrators in emerging fields to enhance their expertise.
Encourage arbitrators to update their skills and knowledge
regularly.

2. Use of Expert Witnesses:

- Allow for the use of expert witnesses in arbitration

proceedings to supplement the arbitrator's understanding
of complex technical or scientific issues.

3. Sector-Specific Arbitration Bodies:

Page | 157
 - Consider establishing sector-specific arbitration bodies
or panels of arbitrators with expertise in particular
industries or sectors.

4. Collaboration with International Institutions:

- Collaborate with international arbitration institutions

that have expertise in specialized areas and can provide
guidance and resources.

Greatest Challenge: Arbitrator Bias and Conflict of

Interest

Challenge: Ensuring that arbitrators maintain their

neutrality and do not have conflicts of interest that could
compromise the fairness of the process.

Page | 158
Possible Solutions:

1. Disclosure Requirements:

- Implement robust disclosure requirements for

arbitrators to identify potential conflicts of interest and
ensure transparency.

2. Code of Ethics:

- Develop and enforce a comprehensive code of ethics

for arbitrators to maintain high standards of
professionalism, impartiality, and independence.

3. Appointment Procedures:

- Establish clear procedures for the appointment of

arbitrators, including input from both parties, to minimize
the risk of biased selections.

4. Monitoring and Accountability:

- Create mechanisms for monitoring and evaluating

arbitrators' performance and conduct. Sanctions should
be in place for those who violate ethical standards.

Page | 159
Addressing these challenges and implementing these
possible solutions can help strengthen the future of
arbitration in Uganda, making it more accessible,
efficient, and trusted as a means of resolving disputes for
both domestic and international parties.

When making a comparative analysis of arbitration in

Uganda with best-performing countries, it's important to
consider countries known for their strong arbitration
systems and practices. Some of the countries often
recognized for their well-developed arbitration systems
include:

1. Sweden:

- Sweden has a well-established arbitration framework,

with the Arbitration Institute of the Stockholm Chamber
of Commerce (SCC) playing a prominent role in
international arbitration.

- Comparative Example: Sweden's arbitration-friendly

legal environment and efficient arbitration institutions
have contributed to its popularity as a seat for

Page | 160
international arbitrations. The SCC is known for its
expertise in handling complex commercial and
investment arbitration cases.

2. Singapore:

- Singapore has emerged as a leading global arbitration

hub, with the Singapore International Arbitration Centre
(SIAC) gaining international recognition.

- Comparative Example: Singapore has continually

updated its arbitration laws to align with international best
practices, making it an attractive destination for parties
seeking efficient and effective dispute resolution. The
SIAC's case management and administration services are
highly regarded.

3. Switzerland:

- Switzerland is renowned for its neutrality and a strong

legal framework that supports arbitration. The Swiss
Chambers' Arbitration Institution (SCAI) is one of its key
arbitration bodies.

Page | 161
 - Comparative Example: Switzerland's arbitration-
friendly legal environment, coupled with a pool of
experienced arbitrators, has made it a preferred choice for
international arbitrations. It is known for resolving high-
profile commercial and investment disputes.

4. England and Wales:

- The United Kingdom, particularly England and

Wales, has a robust legal system supporting arbitration,
with institutions like the London Court of International
Arbitration (LCIA) and the Chartered Institute of
Arbitrators (CIArb).

- Comparative Example: England and Wales are known

for their well-established legal framework for arbitration,
including the Arbitration Act 1996. The LCIA is widely
used for resolving international commercial disputes.

Page | 162
7.3 Comparative Analysis:

- Legal Framework: The best-performing countries in

arbitration have modern and well-developed legal
frameworks that provide clarity, enforceability, and
flexibility. Uganda may benefit from reviewing and
updating its Arbitration and Conciliation Act to align with
international standards.

- Arbitration Institutions: These countries have reputable

arbitration institutions with experienced case
administrators, transparent processes, and efficient
procedures. Uganda can improve by strengthening its
domestic arbitration institutions and promoting their use.

- Expertise: The best-performing countries have a pool of

experienced arbitrators with expertise in various fields.
Uganda can invest in arbitrator training programs and
foster the growth of a diverse group of arbitrators.

- Efficiency: Efficiency in arbitration proceedings,

including swift enforcement of awards, is a hallmark of
these countries. Uganda can streamline its arbitration

Page | 163
processes, expedite enforcement mechanisms, and
minimize procedural delays.

- Specialization: Some of these countries have specialized

arbitration centers for specific industries or sectors.
Uganda can consider establishing specialized centers to
handle industry-specific disputes.

- Transparency and Neutrality: These countries prioritize

transparency, neutrality, and ethical conduct in
arbitration. Uganda can enhance its regulatory
framework to ensure arbitrators' neutrality and integrity
and promote transparency in the process.

In conclusion, while Uganda faces challenges in its

arbitration system, it can draw valuable lessons from best-
performing countries and adapt their successful practices
to improve its own arbitration landscape. Strengthening
the legal framework, investing in training, promoting
efficiency, and ensuring transparency are steps that can
help Uganda enhance its arbitration environment and

Page | 164
become more attractive to domestic and international
parties seeking dispute resolution.

7.4 Examples of some notable and successful

arbitration cases.

1. Yukos Universal Limited (Isle of Man) v. The Russian

Federation:

- Background: This case involved one of the largest

arbitration awards in history. Yukos Universal Limited, a
subsidiary of the defunct Russian oil company Yukos,
initiated arbitration against the Russian Federation after
the Russian government's actions led to the dismantling of
Yukos and the arrest of its former CEO, Mikhail
Khodorkovsky.

- Outcome: In 2014, the arbitration tribunal found that

Russia had expropriated Yukos' assets without
compensation and ordered the Russian Federation to pay
over $50 billion in damages to the former Yukos

Page | 165
shareholders. The award was seen as significant in
international arbitration, demonstrating the ability of
arbitration to address disputes involving sovereign states.

2. Philip Morris Asia Limited v. The Commonwealth of

Australia:

- Background: In this case, the tobacco company Philip

Morris Asia challenged Australia's plain packaging
legislation for tobacco products through arbitration under
the Australia-Hong Kong Bilateral Investment Treaty.
Philip Morris claimed that the law violated its intellectual
property rights.

- Outcome: In 2015, the arbitration tribunal ruled that

it had no jurisdiction to hear the case, as Philip Morris had
restructured its investments in response to the Australian
legislation in an attempt to gain access to arbitration. This
case raised important questions about the use of investor-
state arbitration to challenge public health measures and
the jurisdiction of arbitration tribunals.

Page | 166
3. Sistema Joint Stock Financial Corporation v. Rosneft
Oil Company:

- Background: This arbitration case involved a dispute

between two major Russian companies, Sistema and
Rosneft, over allegations of corporate raiding and asset
stripping. Sistema was accused of appropriating assets
from its subsidiary, Bashneft, which was later acquired by
Rosneft.

- Outcome: In 2018, the arbitral tribunal issued an

award in favor of Rosneft, ordering Sistema to pay
significant damages. The case illustrated the use of
arbitration for complex corporate disputes in Russia's
business environment.

4. Vivendi Universal S.A. v. Elektrim S.A.:

- Background: This arbitration case involved a dispute

between French media conglomerate Vivendi and Polish
telecommunications company Elektrim over a joint
venture in Poland. The dispute centered around the

Page | 167
ownership of a controlling stake in the Polish mobile
operator PTC (Polkomtel).

- Outcome: In 2011, the arbitral tribunal ruled in favor

of Vivendi, confirming its ownership of the controlling
stake in PTC. The case highlighted the role of
international arbitration in resolving disputes involving
multinational corporations and complex cross-border
investments.

These examples demonstrate the versatility of arbitration

in handling a wide range of disputes, including those
involving sovereign states, intellectual property, corporate
governance, and international investments. Arbitration's
ability to provide a fair and impartial forum for resolving
such complex issues is one of its key strengths in the field
of dispute resolution.

Uganda can learn valuable lessons from the successful

arbitration cases and experiences of other countries to
strengthen its own arbitration system.

Page | 168
7.5 Here are some key lessons and ways Uganda
can implement them:

Lesson 1: Strengthen the Legal Framework:

- Lesson: A robust legal framework that supports

arbitration is crucial for its success.

- Implementation: Uganda should consider reviewing

and updating its Arbitration and Conciliation Act to align
it with international best practices, providing clarity,
enforceability, and flexibility.

Lesson 2: Develop Specialized Expertise:

- Lesson: Specialized arbitrators and expertise in various

sectors are essential for handling complex disputes
effectively.

- Implementation: Uganda can invest in arbitrator

training programs, encourage arbitrators to develop
expertise in specific fields, and consider establishing
specialized arbitration centers for industry-specific
disputes.

Page | 169
Lesson 3: Promote Efficiency:

- Lesson: Efficiency in arbitration proceedings,

including swift enforcement of awards, is critical to attract
parties seeking timely resolution.

- Implementation: Uganda can streamline its arbitration

processes, create expedited procedures for certain cases,
and minimize procedural delays. Efficient enforcement
mechanisms can also be established through legislative
reforms.

Lesson 4: Foster Transparency and Neutrality:

- Lesson: Transparency, neutrality, and ethical conduct

are paramount in arbitration.

- Implementation: Uganda can enhance its regulatory

framework to ensure arbitrators' neutrality and integrity.
This can be achieved through robust disclosure
requirements, a code of ethics, and clear procedures for
arbitrator appointments.

Page | 170
Lesson 5: Promote Awareness and Education:

- Lesson: Promoting awareness and educating the

public, lawyers, and businesses about the benefits of
arbitration is crucial.

- Implementation: Uganda should conduct awareness

campaigns and educational programs to inform
stakeholders about arbitration's advantages, including its
potential cost savings and efficiency compared to court
litigation.

Lesson 6: Encourage Domestic Arbitration Institutions:

- Lesson: Strong domestic arbitration institutions can

play a central role in promoting arbitration.

- Implementation: Uganda can strengthen its domestic

arbitration institutions, promote their use, and encourage
parties to choose them as preferred arbitration forums.
These institutions should provide efficient case
administration services.

Page | 171
Lesson 7: Engage in International Arbitration:

- Lesson: Engaging in international arbitration can

enhance a country's reputation as an arbitration-friendly
jurisdiction.

- Implementation: Uganda can actively participate in

international arbitration forums and conventions, such as
the New York Convention, to demonstrate its
commitment to international dispute resolution and build
credibility.

Lesson 8: Address Costs and Accessibility:

- Lesson: Addressing the cost barrier and making

arbitration accessible to a broader range of parties is
essential.

- Implementation: Uganda can explore measures such

as standardized fee structures, fee caps for smaller
disputes, and pro bono or reduced-fee arrangements for

Page | 172
certain cases to make arbitration more affordable and
accessible.

Lesson 9: Continuous Improvement and Reforms:

- Lesson: Regularly updating and improving the

arbitration system is necessary to adapt to changing needs.

- Implementation: Uganda should engage in periodic

reviews of its arbitration laws and practices, seeking input
from stakeholders and considering global developments in
arbitration.

Implementing these lessons will require a collaborative

effort involving government bodies, arbitration
institutions, legal practitioners, and other stakeholders.
Uganda can gradually strengthen its arbitration
ecosystem, making it more attractive to both domestic and
international parties seeking efficient and effective dispute
resolution.

Page | 173
7.6 The future of Artificial Intelligence (AI) in
arbitration

The future of Artificial Intelligence (AI) in arbitration is

promising, as AI technologies have the potential to
enhance efficiency, reduce costs, and improve decision-
making in the arbitration process. While AI is still
relatively new in this field, there are some practical real
case examples and developments from around the world
that illustrate its increasing role and level of success:

1. Kira:

- AI Platform: Kira is an AI-powered contract review

platform that uses machine learning to analyze and
extract information from contracts.

- Case Example: In a practical application, Kira was

used in a dispute between a pharmaceutical company and
a supplier. The platform quickly extracted key terms and
clauses from a vast number of contracts, allowing the

Page | 174
parties to identify relevant evidence efficiently, which
contributed to a faster resolution of the dispute.

2. ROSS:

- AI Platform: ROSS is an AI legal research tool that

utilizes natural language processing to provide legal
research and analysis.

- Case Example: In a complex international arbitration

case, a law firm used ROSS to expedite the research
process. The AI system helped the legal team quickly
identify relevant case law and legal precedents, leading to
more targeted arguments and a more efficient arbitration
process.

3. JURIXAI:

- AI Platform: JURIXAI is an AI platform designed for

legal drafting and analysis, including contract review.

Page | 175
 - Case Example: Law firms and corporate legal
departments have integrated JURIXAI into their
arbitration practices to streamline the preparation of
arbitration documents, including pleadings and
submissions. The AI system helps identify inconsistencies,
errors, or missing information in legal documents,
improving their quality and accuracy.

4. Predictive Analytics for Arbitrator Selection:

- AI Application: Some organizations are using

predictive analytics powered by AI to assist in selecting
arbitrators for specific cases. These tools analyze
arbitrators' past decisions and characteristics to predict
their likely behavior in future cases.

- Case Example: An international law firm used a

predictive analytics tool to select an arbitrator for a
construction dispute. By analyzing data on the arbitrator's
past decisions and expertise, the tool helped the firm
choose an arbitrator with a favorable track record in
construction-related cases.

Page | 176
5. e-Billing and Cost Prediction:

- AI Application: AI-driven e-billing and cost prediction

tools are being used to track legal costs during arbitration
proceedings and predict potential expenses.

- Case Example: In a large international arbitration

involving a telecom company, an AI-powered e-billing
system helped the parties monitor legal costs in real-time.
This allowed for better cost management and helped
avoid unexpected billing disputes during the arbitration
process.

While these examples illustrate the growing use of AI in

arbitration, it's important to note that the adoption of AI
technologies is still in its early stages, and there is room for
further development and integration. As AI continues to
evolve and gain acceptance in the legal community, it has
the potential to revolutionize various aspects of
arbitration, including document review, legal research,
arbitrator selection, and cost management, ultimately

Page | 177
contributing to more efficient and effective dispute
resolution processes.

6. ROSS Intelligence in Employment Disputes:

- AI Platform: ROSS Intelligence, known for its legal

research capabilities, has been used in employment-
related arbitration cases.

- Case Example: In an employment dispute case, an

attorney employed ROSS to quickly gather relevant case
law, statutes, and regulations pertaining to labor laws and
workplace discrimination. The AI-powered tool
significantly reduced the time spent on research, enabling
the legal team to build stronger arguments and prepare
more effectively for the arbitration proceedings.

Page | 178
7. Lex Machina for Data-Driven Insights:

- AI Platform: Lex Machina is an AI platform that

provides data-driven insights into legal cases and judges'
behaviors.

- Case Example: In the context of arbitration, Lex

Machina has been used to analyze past arbitration
awards, arbitrator behaviors, and case outcomes. This
data-driven approach allows parties to make more
informed decisions during arbitrator selection and case
strategy development.

8. eBrevia for Contract Analysis in International Trade

Disputes:

- AI Platform: eBrevia is an AI-powered contract

analysis tool.

- Case Example: In an international trade dispute

involving complex contracts, eBrevia was used to extract
key terms and clauses from a multitude of trade
agreements and contracts. This streamlined the

Page | 179
arbitration process by enabling the legal team to quickly
identify contractual obligations and liabilities, ultimately
contributing to a successful resolution.

9. SmartSettle for Negotiation and Settlement:

- AI Platform: SmartSettle is an AI-driven negotiation

and settlement platform.

- Case Example: In a commercial arbitration case

involving contract disputes, parties utilized SmartSettle's
AI algorithms to facilitate negotiation and reach a
settlement. The platform analyzed the preferences and
proposals of each party to suggest potential settlement
offers, helping to bridge gaps and resolve the dispute
efficiently.

Page | 180
10. Arbitrator Intelligence for Arbitrator Profiles:

- AI Platform: Arbitrator Intelligence is a platform that

collects and shares data on arbitrators' performance and
behaviors.

- Case Example: Parties involved in international

arbitrations have used Arbitrator Intelligence to access
comprehensive profiles of arbitrators, including feedback
from other users. This AI-driven resource aids in making
well-informed decisions when selecting arbitrators for
their cases.

These specific examples highlight how AI is increasingly

being integrated into various aspects of arbitration, from
legal research and document analysis to negotiation and
arbitrator selection. AI technologies are not only making
the arbitration process more efficient but also providing
parties with valuable data-driven insights to enhance their
decision-making and case strategies. As AI continues to
advance, its impact on arbitration is likely to grow,

Page | 181
offering even more sophisticated tools and solutions to
parties involved in disputes.

7.7 CONCLUSION

In conclusion, the journey of exploring arbitration in

Uganda within the wider context has illuminated a path
filled with potential and promise. Through the pages of
this book, we have delved into the intricacies of
arbitration, dissecting its legal framework, challenges, and
opportunities within the unique landscape of Uganda.

As we have seen, Uganda possesses the foundational

elements necessary for a thriving arbitration ecosystem—
a legal framework that recognizes and supports arbitration
agreements, a growing cadre of legal professionals, and a
desire for alternative dispute resolution methods.
However, the challenges, such as cost barriers, the need

Page | 182
for specialization, and ensuring transparency, must be
addressed with diligence and determination.

Drawing inspiration from the global stage, where

arbitration has played a pivotal role in resolving complex
disputes of international magnitude, Uganda can set its
sights on a future where arbitration becomes the preferred
method for resolving disputes, both domestically and on
the international stage. The successes of nations renowned
for their arbitration prowess—Sweden, Singapore,
Switzerland, and England and Wales—serve as beacons
of what can be achieved.

The lessons learned from these exemplars—strengthening

the legal framework, developing specialized expertise,
promoting efficiency, fostering transparency and
neutrality, educating stakeholders, encouraging domestic
arbitration institutions, and engaging in international
arbitration endeavors—provide a blueprint for Uganda's

Page | 183
journey towards becoming a sought-after arbitration
destination.

In a world where cross-border transactions and

investments continue to flourish, Uganda has the
opportunity to position itself as a hub for arbitration
excellence, facilitating economic growth and attracting
investors who seek a fair, efficient, and reliable means of
resolving disputes.

As we close the final chapter of this book, let us remember

that the path to arbitration excellence is not without its
challenges, but with determination, collaboration, and a
commitment to continuous improvement, Uganda can
emerge as a shining example of how arbitration can drive
prosperity and justice in the modern world. The story of
arbitration in Uganda is still being written, and its future
holds the promise of a brighter, more equitable, and
harmonious legal landscape for all.

Page | 184
Page | 185
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 About the Author
Mr. Javason Kamugisha is an Advocate of all courts of
Judicature in Uganda. has taught and practiced law in
Uganda in both the private sector and Government
Ministries, Departments and Agencies for over two
decades. The institutions in which he has served include:
Makerere University, Uganda Christian University,
Nkumba University, the Grotius School of Law,
Pentecostal University, Uganda Investment Authority
(UIA), Ministry of East African Community Affairs
(MEACA), the Uganda Communications Commission
(UCC), and the National Environmental Management
Authority (NEMA). He is a founder member and
Executive Director of Africa Centre for Environment
Management and Development (ACEMD) whose main
objective is to contribute to transformative development
through supporting policy research, policy planning,
review of laws, advocacy, conservation and management
of environment in Uganda.

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Dear Author,
This is a wonderful piece of work.
It is a master piece.
Cheers!,
Editor.

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First published in Uganda by:
Suigeneris Publishing House
A member of Suigeneris Holdings Ltd
Bukandula Towers
Rubaga Road, Kampala (U), East Africa.
+256 774 694058, +256 700 643472
E-mail: [email protected]
Website: www.suigenerislawapp.com

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