Title: The Legal and Institutional Framework Governing Lease Financing in Uganda: Challenges and prospects
Authors: Dr. Kisubi Esther Christine , Sserwanja Derick
Volume: 10
Issue: 6
Pages: 258-263
Publication Date: 2026/06/28
Abstract:
This study examines the legal and institutional framework governing lease financing in Uganda and evaluates its effectiveness in promoting access to finance, legal certainty, and financial sector development. Using a doctrinal legal research approach, it analyses key statutes, regulations, case law, scholarly works, and international instruments such as the UNCITRAL Legislative Guide on Secured Transactions, alongside domestic laws including the Financial Institutions Act, Insolvency Act, and Security Interest in Movable Property Act. The study finds that Uganda has made progress in strengthening its secured transactions regime, including the establishment of an electronic collateral registry and recognition of leasing within the financial system. However, the framework remains fragmented, with no comprehensive leasing law and persistent inconsistencies in classification, registration, enforcement, and insolvency treatment of leases. These gaps, together with limited institutional capacity and low awareness, undermine legal certainty and restrict market growth, particularly for SMEs. The study concludes that legal reforms especially the enactment of a dedicated leasing law, harmonization of existing legislation, and enhanced institutional capacity are necessary to improve effectiveness and support financial inclusion and economic development.