Uganda’s Court of Appeal has reduced damages awarded against telecommunications company MTN Uganda in a dispute with Ezee Money Uganda from Shs2.3 billion to Shs300 million, while upholding a finding that MTN unlawfully induced an aggregator to terminate its business arrangement with the financial services company.
The three-judge panel, led by Justice Geoffrey Kiryabwire, reduced the award by Shs2 billion, excluding interest and costs, but overturned the High Court’s finding that MTN had breached the Uganda Communications Act, 2013.
The judges held that Ezee Money facilitated financial transactions rather than providing communication services covered by the statutory provisions cited in the case.
The dispute centred on Ezee Money’s attempt to connect its payment platform to MTN’s network through Yo! Uganda Limited, a third-party aggregator, using short code 7711.
MTN declined the proposed arrangement and required Ezee Money to negotiate commercial terms directly with the telecommunications company. It also withdrew Ezee Money’s post-paid telecommunications services, citing credit-vetting requirements.
The case also involved MTN’s exclusivity arrangements with mobile money agents and allegations that agents serving competing platforms had been harassed, had their equipment confiscated and been temporarily detained.
The Court of Appeal found that the methods used to enforce the arrangements were unlawful, irrespective of whether the exclusivity agreements themselves were valid. It upheld MTN’s liability for wrongful interference with Ezee Money’s contractual relations, including its arrangement with Yo! Uganda.
Court questions original damages award
Evidence considered during the appeal showed that Ezee Money’s transactions had declined by 79 percent, while 65 percent of its service centres had become inactive.
However, the appellate judges found that the High Court had relied on internet financial reports about MTN that had been rejected as evidence when assessing damages.
Justice Kiryabwire said the original awards were “disproportionate to the proven harm”.
The court reduced general damages from Shs800 million to Shs200 million and punitive damages from Shs1.5 billion to Shs100 million. The punitive award was retained to deter similar unlawful conduct.
The judges ordered interest on the revised damages at the court rate from the date of the High Court judgment until full payment.
MTN was also awarded half of the taxed costs incurred in the trial and the appeal.
The ruling, delivered on October 22, 2026, partly allowed MTN’s appeal in MTN Uganda Limited v Ezee Money Uganda Limited, Civil Appeal No. 66 of 2016. It left the company liable for wrongful interference with contractual relations while setting aside the finding that it had breached the cited provisions of the Uganda Communications Act, 2013.
