The case of Uganda Telecom Limited v Ondama Sammuel t/a Alaka & Co (Miscellaneous Application No. 12 of 2018) presented the Ugandan courts with an opportunity to test the provisions of the Insolvency Act, 2011 in the context of an ongoing company administration process. The case shows how the Ugandan legal system operates to protect a debtor under administration from legal proceedings by its creditors.  Uganda Telecom Limited (“UTL”) has been under administration since May 2017.

The recent administration of heavily indebted Uganda Telecom Limited (“UTL”) aims to achieve the best outcome for creditors and shareholders. Below, we unpack the implications of the administration for UTL’s creditors and other stakeholders.