Guardians of Trust: Charting Uganda's Course in Corporate Governance, Bailment Law, and National Progress

 

File Photo/Courtesy: Default LinkedIn Profile/Credentials

What You Need to Know:

In a multi-faceted examination of corporate leadership, legal frameworks, and national development, this report profiles key figures in Uganda's insurance sector, delves into the intricacies of bailment agreements as defined by Ugandan law, and advocates for regulatory reform in line with the nation's strategic objectives.

Profiles of Distinction in Uganda's Insurance Sector

Dr. Joyce Namirimo Tamale: Chairperson of the Board, Uganda Reinsurance Company

Dr. Joyce Namirimo Tamale stands as a titan in Uganda's financial and insurance landscape, bringing a wealth of experience and a formidable academic background to her role as the Chairperson of the Board of Uganda Reinsurance Company. Her distinguished career is marked by a profound commitment to corporate governance, strategic leadership, and sustainable development.

Dr. Tamale's professional journey includes pivotal roles in some of East Africa's most respected institutions. Her expertise in finance, investment, and risk management has been honed through years of dedicated service in both the public and private sectors. Her leadership is characterized by a forward-thinking approach, emphasizing innovation and the adoption of international best practices to bolster Uganda's reinsurance capabilities.

Academically, Dr. Tamale holds a Doctorate in Business Administration, a testament to her deep understanding of the theoretical and practical underpinnings of modern commerce. This, combined with her extensive boardroom experience, positions her as a guiding force for Uganda Re, steering the company towards greater heights of success and contributing significantly to the stability and growth of the nation's insurance industry.

Mr. Saul Sseremba: Chief Executive Officer, The Insurance Training College

At the helm of The Insurance Training College (ITC), Mr. Saul Sseremba is a dedicated and visionary leader, tasked with the crucial mandate of cultivating the next generation of insurance professionals in Uganda. His role as Chief Executive Officer is central to the development of human capital within the sector, ensuring that practitioners are equipped with the requisite skills and ethical grounding to navigate an increasingly complex industry.

Mr. Sseremba's career is a testament to his passion for education and professional development. With a strong background in insurance and management, he has been instrumental in shaping the curriculum and strategic direction of the ITC. His leadership is marked by a commitment to excellence, innovation in pedagogy, and the forging of strategic partnerships with local and international bodies to enhance the learning experience.

Under his stewardship, the ITC has solidified its reputation as a center of excellence for insurance education in the region. Mr. Sseremba's efforts are pivotal in professionalizing the insurance industry, fostering a culture of continuous learning, and ultimately, building a more robust and resilient insurance market in Uganda.

Understanding the Bailment Agreement in Ugandan Law

A bailment agreement is a legal cornerstone of the service industry. In Uganda, this relationship is primarily governed by the principles of contract law, as codified in the Contracts Act, 2010 (Act 7 of 2010, Chapter 284 of the Laws of Uganda, 7th Edition, 2024). This pivotal piece of legislation, which came into force on September 15, 2011, modernized Uganda's contractual framework by repealing the colonial-era Indian Contract Act of 1872.

Under the Contracts Act, 2010, a bailment is established when one party, the bailor, entrusts their property to another party, the bailee, for a specific purpose. Upon fulfillment of this purpose, the property must be returned or disposed of according to the bailor's instructions.

Key Elements of a Bailment Agreement:

• Parties: Clear identification of the bailor and the bailee.

• Property: A precise description of the property being bailed.

• Purpose: The specific reason for the transfer of possession (e.g., storage, repair, transport).

• Standard of Care: The level of care the bailee must exercise, a critical element in determining liability.

• Liability: Provisions outlining the bailee's responsibility for loss or damage.

• Term and Termination: The duration and conditions for ending the agreement.

• Return of Property: The procedure for returning the property.

• Fees and Charges: Compensation for the bailee's services.

Judicial Interpretation in Uganda:

The principles of bailment have been interpreted and applied by Ugandan courts, creating a body of judicial precedent that clarifies the duties and liabilities of the parties. Key cases include:

• Amony Mary Stella (Appellant) Vs Okot Garimoni Mathew t/a 323 Royal Inn (Respondent) Civil Appeal No. 099 of 2018: This case explores the liability of innkeepers, a classic example of a bailment relationship concerning guests' property.

• Robert Bagala (Appellant) Vs Uganda Revenue Authority (Respondent), Court of Appeal No. 35 of 2010: This appeal addresses the nature of bailment when goods are held by a state authority, defining the scope of their duty of care.

• Capital Rentals Ltd Vs Weatherford Services & Rentals Ltd (Civil Suit 85 of 2012): This commercial court case provides a precedent for applying bailment principles to business-to-business equipment leasing and rentals.

• Swaibu Katongole Vs Spear Tourism and Cargo (U) Ltd (HCT-00-CC-CS-225-2006): This matter deals with liability in the context of cargo and freight forwarding, a crucial area of commercial bailment.

• D.S.S. Motors Ltd Vs Afri Tours and Travels Ltd (HCT-00-CC-CS-0012-2003): This case involves bailment related to vehicles, specifically in the context of hire or tour operations.

• Silveria & 4 Ors Vs Stanbic Bank (U) Limited & 2 Ors (Civil Suit 230 of 2012): This case examines the complex bailment relationship between a bank and its clients regarding items held in safe custody.

The full details and judgments for these and other judicial precedents can be accessed through the Uganda Legal Information Institute (ULII).

Excellence in Mobility: A Case Study in Bailment and Valet Parking

The implementation of bailment principles is exemplified in the valet parking services of developed economies like the United States. A standout example is the integration of technology and robust customer service frameworks by leading valet service providers. This model demonstrates a mature application of bailment principles, where technology, robust legal frameworks, and a customer-centric approach create a seamless and secure service.

A Call to Action: Formulating Bailment Regulation in Uganda under NDP-IV

The National Development Plan 4 (NDP-IV) envisions a private sector-led, export-oriented, and quasi-market-led economic strategy. A key enabler of this vision is a clear, predictable, and fair regulatory environment that protects consumers and businesses.

While the Contracts Act, 2010 provides a solid foundation, the burgeoning service economy in Uganda—from valet parking to e-commerce and logistics—necessitates a more specific and modern regulatory framework for bailment. The absence of such detailed regulation creates uncertainty and exposes consumers and businesses to unnecessary risks.

Therefore, a compelling call to action is made for the formulation of a dedicated Bailment Regulation in Uganda, aligned with the objectives of NDP-IV:

1. Enhancing Consumer Protection: A clear regulation would establish a statutory duty of care for bailees, providing consumers with clear legal recourse, building on the principles affirmed in the aforementioned case law.

2. Promoting Private Sector Growth: Predictable rules would reduce risks for entrepreneurs in the services sector, encouraging investment in logistics, warehousing, and specialized valet services, addressing issues central to the commercial disputes handled by Ugandan courts.

3. Fostering a Digital Economy: A modern bailment framework must address electronic documentation and the liabilities of app-based services, supporting the growth of the digital economy, a key pillar of NDP-IV.

4. Improving the Business Environment: Clear, modern regulations are critical for attracting foreign direct investment. A specific bailment law would signal Uganda's commitment to a sophisticated and secure business environment.

The formulation of a dedicated Bailment Regulation is a strategic imperative. It is a foundational step towards building a more resilient, efficient, and trustworthy service economy, directly contributing to the transformative goals set forth in the National Development Plan 4. The time for action is now.

Uganda's 2025/26 Budget: Building Economic Resilience for All

 

Uganda's Shs72.136 Trillion Budget for FY 2025/2026 Focuses on Full Economic Monetisation

Kampala, Uganda - The Minister of Finance, Planning and Economic Development, Hon. Matia Kasaija, today, June 12, 2025, presented a UGX 72.136 trillion national budget for the fiscal year 2025/2026. The budget, themed "Full Monetisation of Uganda's Economy through Commercial Agriculture, Industrialisation, Expanding and Broadening Services, Digital Transformation and Market Access," prioritizes empowering households to participate in the money economy and enhancing the country's productive capacity.

A significant portion of the budget is allocated to key sectors aimed at driving this economic transformation, with substantial investments in social services, agriculture, and tourism.

Key National Priorities:

The overarching goal of the 2025/2026 budget is to accelerate the growth of the economy by focusing on:

• Human Capital Development: Improving the health and education of Ugandans to create a more productive workforce.
• Wealth Creation: Continuing and enhancing programs like the Parish Development Model (PDM) and Emyooga to increase household incomes.
• Infrastructure Development: Investing in transport and energy to facilitate commerce and reduce the cost of doing business.
• Agro-Industrialisation: Transforming the agricultural sector from subsistence to commercial, with a focus on value addition.
• Digital Transformation: Leveraging technology to improve service delivery, efficiency, and financial inclusion.

Social Services Investment:

The social services sector has received a significant boost to improve the well-being of Ugandans. The health sector has been allocated UGX 5.87 trillion. This funding will be directed towards the functionalization of Health Centre IVs, scaling up e-health systems for better data management and service delivery, and expanding emergency medical services across the country.

The education sector has received an allocation of UGX 5.04 trillion. This will support Universal Primary and Secondary Education, provide student loans for higher education, facilitate the construction of new seed secondary schools, and enhance teacher recruitment and digital school inspection systems to ensure quality.

Agriculture Value Addition:

In line with the budget's core theme, UGX 1.86 trillion has been earmarked for agro-industrialisation. The government's strategy is to move beyond subsistence farming by promoting commercial agriculture and adding value to agricultural products before export. Key interventions include:

• Increased funding for agricultural research to develop high-yielding and disease-resistant crop varieties and animal breeds.
• Expansion of irrigation schemes to mitigate the effects of climate change and ensure year-round production.
• Support for the Agricultural Credit Facility (ACF) to provide low-cost financing for farmers and agribusinesses.

Tourism Sector on the Rebound:

The tourism sector, a major foreign exchange earner, has been allocated UGX 430 billion. The government aims to position Uganda as a competitive destination for Meetings, Incentives, Conferences, and Exhibitions (MICE). This will involve marketing Uganda's unique attractions and investing in the necessary infrastructure to host international events.

Boosting Manufacturing and Local Content:

The budget includes several measures to support the manufacturing sector and promote local content. Key among these are tax reforms aimed at creating a more favorable business environment. These include a three-year tax holiday for new citizen-owned businesses and adjustments to excise duties to encourage the use of local raw materials. The government is also committed to championing the Buy Uganda, Build Uganda (BUBU) policy to provide a ready market for locally manufactured goods.

Science and Innovation:

"Digital Transformation" is a central pillar of the new budget. This focus on science and innovation is evident in the planned scale-up of e-health systems and the digitalization of school inspections. Furthermore, the budget highlights the achievements of the National Agricultural Research Organisation (NARO) in developing an anti-tick vaccine, underscoring the government's commitment to leveraging science for economic development.

Savings Campaign via Mobile Money and Investment in Government Securities:

While the budget speech emphasizes "full monetisation" and wealth creation, which inherently encourages a savings culture, there was no specific, high-profile announcement of a new "Savings Campaign via MobileMoney and investment in Government Securities." However, the broader theme of digital transformation and financial inclusion suggests that the government will continue to support the growth of digital financial services. The increased use of platforms like Mobile Money is seen as a key enabler for bringing more Ugandans into the formal financial system, which could, in turn, facilitate easier access to savings and investment products, including government securities for retail investors. The government's focus on digital solutions for programs like the Parish Development Model (PDM) also points to a strategy of leveraging mobile technology for financial transactions and, potentially, for encouraging savings among beneficiaries. Financial sector stakeholders will be watching for specific policy directives and initiatives from the Bank of Uganda and the Ministry of Finance to operationalize this aspect of the digital transformation agenda.

 

STATE OF THE NATION ADDRESS (SONA) – 2025

PRESIDENT MUSEVENI UNVEILS NATIONAL DEVELOPMENT PLAN (NDP-IV)

Pamela Mbabazi, National Planning Authority (GOU) | Uganda reaches historic milestone on our journey towards sustainable socio-economic transformation.

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‎Yesterday at Kololo, His Excellency the President launched Uganda's National Development Plan 4 (NDP 4)-a visionary blueprint to shape a resilient, inclusive, and prosperous nation. This plan encapsulates our collective aspirations: fostering inclusive growth, accelerating industrialization and value addition, enhancing infrastructure, and prioritizing health, education, employment creation and environmental sustainability.

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‎The core vision of NDP 4 is to position Uganda as a middle-income economy-driven by diversification, technological innovation, and social equity. It aims to unlock the potential of every Ugandan, ensuring quality of life for all and creating a foundation for sustainable development that benefits current and future generations. Rooted in integrity, unity, and divine guidance, this transformative plan is a call to action for us all.

 

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‎Key pillars include:

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‎1. Economic Diversification; Moving beyond reliance on traditional sectors to build resilience through Value Addition.

 2. Technological Innovation & Digital Transformation; Leveraging science and technology to leapfrog development stages. 

3. Social Transformation; Ensuring accessible, quality healthcare, education, and social services.

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‎4. Infrastructure Development; Upgrading roads, energy, and urban planning to support industrial growth and youth employment. 5. Environmental Sustainability; Safeguarding our natural resources for future generations.

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‎As Ugandans, it is our sacred duty to rally behind this vision with purpose, integrity, and determination. Together, through collective effort and unwavering commitment, we can unlock Uganda's potential-driving double-digit growth and elevating our nation's standing on the global stage-all for the glory of God.

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‎Let us turn this bold vision into tangible reality. The best days of Uganda are still ahead.

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REPOSITORY/SUPPLEMENT

PARIS-2024 – O-SERIES

TENETS OF TRUST LEGACY

GLOBAL SOUTH ALERT – AFRICA –  #01 : |O| TRUST FROM SINCE MEDIEVAL ENGLAND, TO BEYOND AMERICAN DECLARATION OF INDEPENDENCE ON JULY 4, 1776.

YouTube: Trust Presentation Link – Overview :Express Trusts Under Common Law (Part 1) ; (Part 2) ; (Part 3) ; (Part 4).

GLOBAL SOUTH ALERT – ASIA – #02:|O| BANK NOT A TRUSTEE OR FIDUCIARY  BUT SIMPLY A DEBTOR – The contract between a bank and a customer in the decision of the House of Lords in Foley vs Hill (1848) 2 HL Cas 28

GLOBAL SOUTH ALERT – AUSTRALIA – #03:|O | MORTGAGEE (TYPALLY A LENDER SUCH AS A BANK) NOT A TRUSTEE FOR THE MORTGAGOR (BORROWER) –"It is well settled that a mortgagee is not a trustee of a power of sale for the mortgagor. Once the power has accrued, the mortgagee is entitled to exercise it for his own purposes whenever he chooses to do so. It matters not that the moment may be unpropitious and that by waiting a higher price could be obtained. He has the right to realize his security by turning it into money when he likes. [ See: Cuckmere Brick Co. Ltd Vs Mutual Finance Ltd [1971] Ch. 949 ]

GLOBALSOUTHALERT – EUROPE – #04: |O| #BANK STANDS TO LOOSE FOR FAILURE TO KEEP PROPER RECORD OF CUSTOMER ACCOUNT TRANSACTIONS – "Any bank which fails to keep proper records of accounts cannot sustain an ascertainable claim against a customer. ( See: Ezekiel Osugo Angwenyi & Another Vs. National Industrial Credit Bank Limited (2007) eKLR ]"

In Excellent Assorted Manufacturers Ltd & Anor Vs DFCU Bank Limited & Anor, Pg 81, Hon. Mr. Justice Boniface Wamala had the following important observation on that point as cited below:

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"It appears to me that the use of the URA receipt to explain this transaction is an attempt by the 1st Defendant to use any available documents that appear to be proximate in time to explain certain transactions even when there is no nexus between the documents. I find this trend unacceptable. Simply because a payment was done around the time the queried transaction was effected cannot be used as evidence to explain the query. Relying on a decision to which this court was referred by Counsel for the Plaintiffs, I agree that a Court of law cannot determine issues of accounts based on guesswork. 

GLOBALSOUTHALERT – NORTH AMERICA – #05:|O| #LESSEE (#BANK/END-USER) PRECLUDED FROM PASSING TITLE TO A THIRD PARTY WITHOUT PRIOR WRITTEN CONSENT FROM #LESSOR/ (#TRUSTEE/ OWNER) – Meera Investments Limited Vs DFCU Bank Limited & Anor, Civil Suit 948 of 2017 [2023] UGHCLD 340 (20th October 2023), Before: Hon. Mr. Justice Tadeo Asiimwe, CLICK LINK FOR DETAILS =>> : https://lnkd.in/eRHFGGPt

Extract:

James Magode Ikuya Vs Londa Mbarak Abdullah (HCT-04-CV-CA 87 of 2012 [2015] UGHC

"the lessee shall not without the consent of the lessor in writing deal in any way with his/her interest in the land before the lease is extended to the full term of 49 years. Paragraph 3 of the said lease provides for the need for a consent to "transfer". The lease concluded a sale and transfer of the leasehold land without seeking and obtaining the requisite consent." – Hon. Mr. Justice Henry I. Kawesi

RELATED UNITED STATES (USA) PRECEDENT:

Extract:

Cooperider Vs. Myre, 37 Ohio App. 502, 505, 175 N.E. 235, 236 (1930)

"It is no doubt true that possession of personal property is some evidence of ownership, and may be sufficient in a given case to protect one dealing with the property as that of possessor. But mere possession, unaccompanied by other circumstances giving it a specific character or creating an estoppel, is not such evidence of ownership as to prevail against the true owner, except in case of negotiable instruments, mortgaged chattel property, or that sold under conditional sales agreements."

"The rule that one cannot be divested of his property without his consent, and the principle that one cannot possess or convey a greater title than he himself has, controls all questions arising as to personal property attempted to be transferred or as to lien created thereon. The effect of possession as evidence of ownership is subordinate to these principles, save in exceptions noted. The mere fact of one putting property into the charge or custody of another does not divest the possession of the true owner; the legal possession still remains  in the owner, for the agent, bailee or lessee thereof can have no greater title than his grant provides." — Repository Citation: https://lnkd.in/e2R5fZUv

#TrustLawAlert : RENTAL CAR — ASSET BACKED SECURITY (ABS) TRANSACTION

"Most rental car fleet transactions are structured as a true lease (operating lease). In a true lease transaction, the vehicles are titled in the name of the Special Purpose Entity (SPE) with the Indenture Trustee/Custodian named as lienholder on the certificate of title. This will enable the transaction to be structured to be bankruptcy remote so that the fleet of assets can be liquidated in the event of a bankruptcy of the rental car company without a competing claim being made. on behalf of the bankrupt party's creditors." — https://lnkd.in/etmFKd-i

GLOBALSOUTHALERT – SOUTH AMERICA – #06 |O| HUMONGOUS LIQUIDITY TURNOVER : TRUST/FIDUCIARY PATIENT CAPITAL HANDSHAKE WITH ONE OR MORE BORROWER INTERMEDIARY/IES BOOSTS PLOUGHED BACK EARNINGS FOR PARTICIPATING FINANCIAL INSTITUTION/S ( TYPICALLY ONE OR MORE COMMERCIAL BANK/S). For Exhibit (1) [ Mortgage Backed Security (MBS) ]   , Please Visit: Fannie Mae : Financial Reports – FY 2021 | For Exhibit (2) [Asset Backed Security (ABS) ] ; Please Visit : Ford Variable Funding Note Prospectus, June 26, 2009 |

TAGLINE: "TREASURE THE PEARL , RIDE SPECIAL MOBILITY."

LINK: iSpecial Mobility Ecosystem

VISION STATEMENT: "WHOLE BUSINESS SECURITIZATION (WBS) FOR AFRICA AND BEYOND."

🌐 iSpecial Mobility Ecosystem