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MTN mobile money customers receive Shs 5.7bn in interest

Richard Yego (L) signs the dummy cheque

Richard Yego (L) signs the dummy cheque

MTN Mobile Money Uganda Limited has announced that their customers shall be receiving Shs 5.7 billion in interest pay-out for their mobile money savings for the quarter ended June 30, 2022. This was announced by Richard Yego the managing director of MTN MoMo Uganda at an event held at the MTN Uganda headquarters in Kampala.

Yego said the board of trustees of MTN MoMo and Bank of Uganda had approved a payout of Shs 5.7 billion to 19.8 million MTN mobile money accounts. To qualify for the payout, Yego said customers are expected to have a minimum of one shilling and above between the period April 1, 2022, and June 30, 2022.

He added that the disbursement of the interest accrued on savings would be made effective September 14, 2022. This he said would allow the uninterrupted flow of activities during the day. Customers shall be notified by text messages immediately after their interests are paid. 

“As MTN Mobile Money Uganda, we believe that this quarterly interest paid to customers will promote financial inclusion through encouraging saving among our customers and beyond. Through saving, our customers shall create both wealth and opportunities for investment most especially for the small and medium enterprises which greatly rely on MTN Mobile money platform. We also hope that the pay-out will enhance financial resilience by bringing more people into the formal sector through mobile money and thus leading to substantial development and social well-being of the citizens as the country strives to achieve Vision 2040,” added Yego.

Speaking at the same function, James Mugabi, the chairman board of trustees for MTN MoMo applauded MTN for contributing to financial inclusion among the unbanked population.

He added, “I am glad that the MTN MoMo has stirred the demand for various financial services and products by people in the lower pyramid which has improved their livelihoods. The interest payout on their MoMo balances makes the service even more important to the population in terms of savings which is one of the ways of growing wealth. The payout by MTN shall build consumer confidence in the payment ecosystem which shall also expand a set of mobile e-commerce capabilities to businesses and consumers as the economy becomes cashless.” 

Following the enactment of the National Payment Systems (NPS) Act of 2020,  MTN Mobile Money Uganda Limited was separated from its parent company, MTN Uganda, in May 2021. Both section 49(6) of the National Payments Systems Act (NPS) of 2020 and Regulation 14 of the National Payment System regulations of 2021 dictate that MTN Mobile Money Uganda pays its customers, interest earned on a trust account.

Comments

+1 #1 Ebmok 2022-09-19 10:43
Hahahaa they're clever not to mention the amount of savings that were on those possible 19.8 million accounts. For example, if each account had UGX 1/= on it, it would mean they each receive UGX 2.88/= per account.

This is UGX 0.29/= per UGX 1,000/= balance; hardly something to hit the headlines about other than a marketing gimmick.

Hahahaa surely MTN?!
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