Agent Banking is growing rapidly in Uganda
Ugandans are increasingly embracing agent banking as it saves time one would spend queuing up in banking halls.
The Agent Banking Platform is a shared system used by the banks to offer interoperable agent banking services.
According to the Bank of Uganda (BoU), as at June 30, 2025, a total of 24 institutions (23 commercial banks and 1 Microfinance Deposit-taking Institution) had signed up to the shared platform.
The recently released BoU Integrated Annual Report 30 June 2025 reveals that the platform registered a significant 76.1 percent increment in transaction values from UGX 16.7 trillion in the year ending June 2024 to UGX 29.4 trillion in the year ending June 2025.
Correspondingly, the transaction volumes notably increased by 50.5 percent from 8.3 million to 12.5 million over the same period.
“The average transaction value increased by 17 percent from UGX 2 million to UGX 2.35 million reflecting increased use of bank agents for higher value transactions,” BoU says, adding that the number of agents on the shared network increased by 49.1 percent from 15,288 in June 2024 to 22,793 in June 2025.
This increase was mainly attributed to agents recruited by Centenary Bank, KCB Bank, and Post Bank.
“Nonetheless, the active agent ratio reduced from 58 percent to 48 percent mainly driven by the relative increase in the number of new Agents,” the report says.
Automated Clearing House (ACH)
BoU says Cheque transaction values fell by 3.6 percent from UGX 4.8 trillion in the year to June 2024 to UGX 4.62 trillion in the year to June 2025. Similarly, the volume decreased by 3.9 percent from 1.05 million to 1.01 million during the same period.
“The continued reduction in use of cheques is consistent with the policy measure of capping interbank cheques which took effect on January 15, 2022 in support of electronic payments. The Bank shall continue to monitor the trend and will consider the possibility of further lowering the cap for interbank cheques,” the report reads in part.
It adds: “The EFTs recorded an 8.7 percent increment in transaction value from UGX 59.4 trillion in the preceding year to UGX 64.6 trillion in the year ending June 2025.
Overall, cheques accounted for only 6.2 percent of the transaction volume and 5.6 percent of the transaction values in the period under review compared to 6.9 percent and 6.75 percent respectively, in June 2024. The decline in use of cheques reflects increased public adoption of digital payment channels.”
