PostBank wins appeal in Shs15.3 million wrongful payment case
The Ugandan High Court has overturned a lower court ruling that held PostBank Uganda liable for a wrongful payment of over 15 million UGX. The judge ruled that the bank acted on electronic instructions and that customers share responsibility for ensuring payment details are accurate.
Why it matters
This ruling clarifies the legal responsibilities and fiduciary duties of banks regarding electronic payment errors in the Ugandan financial sector.
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Kampala, Uganda | URN | The High Court has overturned a lower court ruling that held PostBank Uganda liable for wrongly paying more than UGX15.3 million intended for a Ministry of Internal Affairs employee to another person with a similar name. In a judgment delivered on July 27, 2026, Justice Simon Peter M. Kinobe allowed PostBank’s appeal, setting aside an earlier decision by the Mengo Chief Magistrate’s Court, which had ordered the bank to refund UGX15,362,412 to William Barigye together with interest, general damages, exemplary damages and costs.
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