Uganda's Bank of Uganda issued a May 29 circular imposing new cash withdrawal limits and cheque transaction restrictions, effective January 1, 2027. The central bank set daily withdrawal caps of UGX50 million ($13,700) and weekly limits of UGX250 million ($68,500) for individual customers, while businesses face daily limits of UGX500 million ($137,000) and weekly caps of UGX2.5 billion ($685,000). The measures aim to accelerate Uganda's transition to a cashless economy by reducing reliance on physical currency and encouraging adoption of digital payment channels including mobile money, internet banking, and real-time settlement systems. Uganda's financial regulators are tightening cash-based transaction policies as electronic money transactions grew 28% in 2025 to UGX366 trillion ($100.3 billion), signaling broader momentum toward digital-first financial infrastructure.
Bank of Uganda Sets Cash Withdrawal Limits for Individuals and Businesses
The Bank of Uganda's May 29 circular sent to commercial banks, credit institutions, and microfinance deposit-taking institutions established tiered withdrawal restrictions for different customer categories. Individual customers will be permitted to withdraw up to UGX50 million ($13,700) daily and UGX250 million ($68,500) weekly in over-the-counter cash transactions. Business and corporate customers will face daily withdrawal caps of UGX500 million ($137,000) and weekly limits of UGX2.5 billion ($685,000). The new rules take effect from January 1, 2027.
The central bank stated the interventions align with its strategic commitment to fostering a modern, digital-first financial landscape by encouraging a shift from traditional paper-based instruments to secure electronic channels. The Bank of Uganda announced it will conduct comprehensive public awareness and information dissemination campaigns in collaboration with all stakeholders during a six-month transition period.
Central Bank Reduces Cheque Transaction Thresholds Across Multiple Currencies
The Bank of Uganda tightened cheque usage limits across five currencies to further discourage paper-based payments. The maximum value for Uganda shilling-denominated cheques was reduced from UGX10 million ($2,740) to UGX5 million ($1,370). US dollar cheque limits were cut from $2,750 to $1,375, while euro cheque limits will fall from €2,250 to €1,125. Pound sterling cheque limits were reduced from £2,200 to £1,100, and Kenyan shilling cheque limits from KES 300,000 to KES 150,000.
Electronic Money Transactions Grew 28% in 2025
Bank of Uganda data showed electronic money transactions grew 28% in 2025 to UGX366 trillion ($100.3 billion), while transaction volumes increased 17.3% to 9.1 billion transactions. Mobile money transaction volumes rose 21.1% to 301.1 million transactions in 2025, while transaction values surged 40% to UGX66.1 trillion ($18.1 billion). The number of active mobile money customers climbed to 36.3 million, supported by an agent network that expanded 27.5% to more than 1.16 million agents nationwide.
FAQ
What cash withdrawal limits did the Bank of Uganda impose on individual customers?
The Bank of Uganda's May 29 circular set daily withdrawal caps of UGX50 million ($13,700) and weekly limits of UGX250 million ($68,500) for individual customers, effective January 1, 2027.
Why did Uganda's central bank reduce cheque transaction limits?
The Bank of Uganda reduced cheque limits across multiple currencies to discourage paper-based payments and encourage a shift to secure electronic payment channels as part of its commitment to fostering a digital-first financial landscape.
How much did mobile money transactions grow in Uganda in 2025?
Mobile money transaction volumes rose 21.1% to 301.1 million transactions in 2025, while transaction values surged 40% to UGX66.1 trillion ($18.1 billion), according to Bank of Uganda data.
