KAMPALA — The Bank of Uganda has revealed that Uganda’s payment landscape has undergone a dramatic digital transformation, with 93 out of every 100 shillings now moving through electronic payment systems, underscoring the country’s growing preference for cashless transactions.
The central bank said the shift has become so significant that the debate is no longer about whether Uganda is going digital, but whether regulations and financial systems are evolving quickly enough to keep pace with changing consumer behavior.
“Today, nearly all payments, by both volume and value, are made electronically, with mobile money accounting for about a quarter of transactions,” the Bank of Uganda said in a statement.
According to data from the central bank’s Automated Clearing House system, electronic credit transfers have become the dominant mode of payment across the economy between the 2017/18 and 2025/26 financial years.
The volume of transactions conducted electronically rose from 87.71 percent to 93.53 percent during the period, while the value of transactions processed through electronic channels increased from 79.33 percent to 93 percent.
The Bank of Uganda noted that mobile money has played a major role in driving the digital revolution, accounting for an average of 25 percent of all transactions annually since the 2020/21 financial year.
“The trend demonstrates sustained growth in both transaction volumes and values, reflecting consumers’ trust in and preference for the efficiency of electronic credit transfers,” the central bank said.
In response to the growing use of digital payments, the Bank of Uganda announced that it will introduce over-the-counter cash withdrawal limits at all supervised financial institutions beginning January 1, 2027.
Under the new framework, individual account holders will be limited to cash withdrawals of up to Shs50 million per day and Shs250 million per week. Corporate and business accounts will be subject to a daily withdrawal limit of Shs500 million and a weekly cap of Shs2.5 billion.
The central bank clarified that the limits will not apply to digital payment channels such as the Real Time Gross Settlement (RTGS) system, Electronic Funds Transfers (EFTs), or other electronic settlement platforms.
Bank of Uganda said the measures are intended to support the financial sector’s e-payments strategy and align Uganda with global trends favoring electronic settlement systems.
Recognizing that some sectors remain heavily reliant on cash transactions, the central bank has issued guidance to supervised financial institutions on managing exceptions.
Under the guidance, banks and other regulated institutions will be required to develop risk-based customer profiles, which could result in lower withdrawal limits for certain clients based on risk assessments. The Bank of Uganda will also retain the discretion to grant exemptions for specific transactions or sectors upon request.
Financial institutions have additionally been directed to educate customers about alternative digital payment options, including RTGS transfers, EFTs, mobile money, and bank-to-wallet services.
To prepare the public for the transition, the central bank announced that a nationwide consumer sensitization and public awareness campaign will begin on July 1, 2026.
The campaign will focus on helping individuals and businesses understand the new withdrawal limits, available digital payment alternatives, and the benefits of electronic transactions.
The latest figures highlight Uganda’s rapid adoption of digital financial services and position the country among Africa’s increasingly cash-light economies, where mobile money and electronic transfers are reshaping the way people conduct business and manage finances.