Legal claims against Uganda government surge to Shs6.4 trillion in three years

Finance Ministry PSST Ramathan Ggoobi identifies the ATMS sectors as the primary engines for Uganda’s economic growth and job creation over the next decade.

KAMPALA, Uganda — Legal claims against the Ugandan government have increased sharply over the last three years, reaching 6.45 trillion shillings by June 2025, according to the Ministry of Finance.

The Contingent Liabilities Annual Report for the 2024-25 financial year shows that the value of court cases and legal disputes involving government institutions rose from 4.41 trillion shillings in June 2023 to 4.91 trillion shillings in June 2024, an 11.2% increase. The figure then jumped 31.4% within a year to 6.45 trillion shillings.

Overall, legal claims have grown by about 46.2% over the last three years, highlighting what officials describe as one of the fastest-growing fiscal risks facing the government.

In notes published with the report, Finance Permanent Secretary Ramathan Ggoobi said legal proceedings have become one of the fastest-growing contingent liabilities facing the state. Ggoobi noted that proactive legal risk management is necessary to protect fiscal sustainability.

The recent increase of about 1.54 trillion shillings means the government faces growing exposure to potential payments arising from court awards, compensation claims, arbitration cases and contractual disputes.

Ministries Account for Biggest Share

The report shows that ministries account for the largest share of legal claims against the government. Claims involving ministries increased from 4.47 trillion shillings in 2024 to 6.25 trillion shillings in 2025, representing a 39.7% increase. This rise accounts for most of the overall growth in legal claims, making ministries responsible for nearly all of the government’s legal liability exposure.

Many of the disputes are linked to land compensation claims, contracts, infrastructure projects and other government obligations that ended up in court. Because ministries implement major government programmes, they are naturally exposed to more disputes involving contractors, landowners and service providers. However, the report states the rapid increase points to weaknesses in contract management and the need for stronger dispute prevention measures.

Agencies Register Decline

While ministries recorded a sharp increase in legal liabilities, government agencies registered a significant reduction. Legal claims against agencies fell from 424 billion shillings in June 2024 to 184.2 billion shillings in June 2025, a 56.5% decline. The report notes this improvement could be the result of successful court outcomes, dispute settlements and better management of legal risks.

Local Governments and Universities Affected

Although much smaller compared to ministries, legal claims involving local governments increased 34% from 9.97 billion shillings in June 2024 to 13.36 billion shillings in June 2025. Public universities and other tertiary institutions also registered a 13% increase in claims, rising from 2.34 billion shillings to 2.64 billion shillings.

Disputes involving local governments are mainly linked to land matters, employment cases and contractual disagreements. Embassies and missions reported minimal exposure, while referral hospitals reported no legal proceedings.

A Hidden Risk to Public Finances

The report describes legal claims as contingent liabilities, meaning they are not yet part of the official public debt but remain potential obligations that could become actual expenditures if courts rule against the government.

The growing stock of legal claims could disrupt budget planning and force the government to redirect resources away from priority sectors such as health, education, roads and other development programmes. Unmanaged legal liabilities could also increase pressure on supplementary budgets.

Why Claims are Growing

The report identifies several factors behind the increase, including disputes over land acquisition, disagreements involving government contracts, delays in resolving disputes, and challenges associated with major infrastructure projects. Some disputes remain unresolved for years, allowing compensation amounts, legal costs and interest charges to accumulate.

To reduce future liabilities, the report recommends strengthening contract management systems across government institutions and promoting early dispute resolution mechanisms. It also calls for closer coordination between accounting officers, the Attorney General’s Chambers and the Ministry of Finance to identify legal risks before they escalate.

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