BOU denies blocking Ugandans from investing in banking sector

By Benjamin Jumbe

Bank of Uganda has denied trying to lock out Ugandans from investing in the banking sector by increasing the minimum paid-up capital for financial institutions.

This comes after the bank increased the fees for establishing commercial banks, tier institutions, and micro-financial institutions.

The amount of capital required for a commercial bank was increased from Shs25bn -150 b, for credit institutions from Shs1bn – 25 bn and for microfinance deposit-taking institutions from Shs500M to shs5 billion.

Director financial stability in the central bank Robert Mbabazize in defending the decision said the revision was long overdue, further arguing that it is intended to make the country’s banking sector competitive within the region.

Written by Noelyn Nassuuna