Bank of Uganda (BoU) has praised the rapid rise of mobile and online lending services by financial institutions, describing them as a game-changer in improving financial access and inclusion across the country.
The shift, central bank officials say, began in 2016 when NCBA bank, then operating as Commercial Bank of Africa, partnered with MTN Uganda to launch MoKash, a mobile-based credit and savings product.
At the time, access to formal credit was largely limited to a small segment of Ugandans with traditional bank accounts. Nearly a decade later, over 50 per cent of Ugandans can now access credit through mobile phone platforms, according to the Bank of Uganda.
Speaking during the commissioning of NCBA’s new head office and Nakasero branch in Kampala, BoU’s director of supervision, David Kalyango, said digital innovation has reshaped Uganda’s financial landscape.
“The financial services sector is evolving rapidly, driven by shifting customer expectations, technological advancements, and regulatory changes,” Kalyango said.
He commended NCBA for its commitment to digital transformation, particularly through products like MoKash, which have boosted operational efficiency and widened access to credit.
“Your embrace of digital innovation, including mobile and internet banking, reaffirms your readiness for the future of banking,” he said.
Kalyango also underscored BoU’s commitment to ensuring stability in the financial sector through progressive regulation. He pointed to recent frameworks such as the Financial Institutions (Corporate Governance) Regulations 2024, Internal Liquidity Assessment Process (ILAAP) guidelines, Cybersecurity Risk Management guidelines, and the ESG (Environmental, Social, and Governance) framework introduced in 2023.
He noted that BoU is currently digitizing its own supervisory processes, with stakeholder consultations expected by June 2025. NCBA currently operates five branches within the Greater Kampala Metropolitan Area, supported by five ATMs, online banking services, and participation in the national agent banking platform.
As of March 2024, the bank’s assets stood at Shs 963 billion, while customer deposits were Shs 654 billion. Kalyango urged banks to align with new reforms, particularly the revised minimum capital requirements aimed at enhancing sector resilience.
“I encourage NCBA to meet the revised paid-up capital requirements to strengthen resilience and ensure regulatory compliance,” he said.
He added that NCBA’s affiliation with a larger regional group positions it to serve a diverse client base, from local SMEs to multinational corporations.
“This new head office provides a strategic opportunity to deepen your engagement with the business community and play a greater role in Uganda’s economic development,” he said.
To date, the MoKash platform has disbursed Shs 2.8 trillion in loans, with over 14 million active users and an average of 500,000 borrowers accessing credit monthly. NCBA Uganda CEO Mark Muyobo highlighted the bank’s strong 2024 performance, with net loans and advances rising by 18 per cent to Shs 298 billion, and profit before tax increasing by 40 per cent to Shs 46 billion.
He said the relocation to Twed Towers and renovation of the Nakasero branch reflect NCBA’s commitment to improving customer experience.
“We’re investing in a new mobile banking app and upgraded corporate banking platform in 2025, to support Uganda’s growing digital economy and improve convenience,” Muyobo said.
