Standard Chartered Bank Ordered to Pay Over UGX 850 Million to Grace Makoko for Unlawful Dismissal in 2015 The Court of Appeal has ruled that Standard Chartered Bank must compensate former Regional Head Grace Makoko for her unlawful dismissal in 2015, awarding her over UGX 850 million in damages, interest, and unvested share entitlements.

The Court of Appeal has ordered Standard Chartered Bank Uganda to pay Grace Tibihikira Makoko a total of over UGX 850 million in compensation following her unlawful dismissal from the bank in 2015.

Delivering judgment in Civil Appeal No. 307 of 2020 on April 25, 2025, a panel comprising Justices Muzamiru Mutangula Kibeedi, Christopher Gashirabake, and John Kihika ruled that, although the original Industrial Court award had been excessive, Makoko was nonetheless entitled to significant compensation.

Makoko, who had served as the Regional Head of Financial Markets and Wholesale Banking for East Africa, was terminated in 2015 without a hearing and before the conclusion of her performance evaluation process. The Court found that her dismissal violated her rights under both Standard Chartered Bank’s internal Human Resource Manual and the Employment Act, 2006.

Court Reduces Awards but Upholds Finding of Unlawful Dismissal

Originally, the Industrial Court had awarded Makoko a total of UGX 1 billion in general damages, USD 108,750 for unvested shares, and 15% annual interest on both sums. Standard Chartered Bank appealed the ruling, arguing that the awards were excessive, unsupported by law, and resulted in double recovery.

In its decision, the Court of Appeal made significant adjustments to the Industrial Court’s award.

Firstly, the UGX 1 billion originally awarded as general damages was reduced to UGX 500 million. The Court reasoned that general damages should aim to restore Makoko to the position she would have been in had the breach not occurred, but not to place her in a better position. Given that her last annual salary was approximately UGX 490 million and only eight months remained on her contract at the time of dismissal, the Court deemed an award of UGX 500 million to be reasonable.

Secondly, the Court set an interest rate of 10% per annum on the general damages award, with interest accruing from the date of the Industrial Court judgment on July 24, 2020, until full payment.

Thirdly, on the matter of unvested share options, the Court of Appeal found that Makoko was not entitled to the full USD 108,750 initially awarded by the Industrial Court. After a detailed review of the record, the Court concluded that she was entitled to only USD 20,000 in unvested share awards, representing the performance awards from 2013 that had not yet vested at the time of her dismissal.

The Court also adjusted the applicable interest on the share award, setting it at 8% per annum from the date of Makoko’s dismissal in June 2015 until full payment.

Following these adjustments, and after converting the USD component into Uganda Shillings at the prevailing exchange rate, Makoko’s total compensation now amounts to approximately UGX 874,552,800.

Additionally, the Court ruled that each party should bear their own costs in the Court of Appeal proceedings. However, Makoko was awarded 50% of her taxed costs incurred before the Industrial Court, recognizing that she had been justified in instituting the original proceedings.

This ruling brings to a close a nearly 10-year legal battle between Grace Makoko and Standard Chartered Bank. It also sets an important precedent for the protection of employment rights and the remedies available for unlawful dismissal, particularly within Uganda’s banking sector.