BoU warns Masindi locals against unregulated financial institutions as outreach exposes service gaps

MASINDI, April 17, 2026 — The Bank of Uganda [BoU] has cautioned residents of Masindi district against keeping money at home or entrusting it to unregulated financial institutions, warning that such practices expose savers to significant risk of loss.

Speaking at the opening of a two-day BoU Town Hall Meeting in Masindi Town on Thursday, the central bank’s Director of Commercial Banking, Hannington Wasswa, urged the public to prioritise regulated financial channels.

“Ensure that you save with financial institutions regulated by the Bank of Uganda to guarantee the safety of your savings. Even if a regulated institution faces challenges, the Bank of Uganda can intervene,” he said. “Embrace SACCOs and credit institutions that are under our supervision.”

The engagement, held at Country Inn Hotel, brought together businesspeople, farmers, cooperators, civil servants, students and representatives of financial institutions to discuss the central bank’s mandate and services.

Waswa emphasised the importance of regulation, urging residents to understand why financial institutions are supervised. He also encouraged the use of regulated savings and credit cooperatives, citing MADFA SACCO as one such compliant entity.

In addition, he called on the public to handle currency notes with care, noting the high cost of replacing damaged money. “We need to know how to handle money. When banknotes are destroyed, replacing them is costly. Use money in the way you would want to receive it,” he advised.

The town hall meeting forms part of a nationwide outreach programme that BoU has been conducting since 2016 to bring its services closer to the public. Waswa noted that the central bank will mark its 60th anniversary in August, with a series of activities planned.

Masindi District LCV Vice Chairperson, Kassim Kabagonza, welcomed BoU’s initiative, saying it would help residents better understand the roles, products and services offered by the central bank. He, however, appealed for the establishment of a BoU branch in the oil-rich Bunyoro Sub-region to improve access.

Despite the positive reception, some participants expressed concern over what they described as limited outreach beyond the central region, arguing that many beneficial financial products remain largely unknown in upcountry areas.

A senior citizen, Wilfred Byakagaba, questioned the central bank’s delayed engagement with the region. “Where have you been all this long, yet you have such good products that can help transform the lives of our people?” he asked.

Similarly, prominent farmer Kanaginagi Ateenyi criticised the lengthy process involved in accessing the multi-billion Agricultural Credit Facility [ACF], describing it as cumbersome despite its benefits. He called for the revival of a Cooperative Bank to channel such financing more effectively, rather than relying solely on profit-driven commercial banks.

Participants were taken through BoU’s core functions, including maintaining price stability, regulating and supervising financial institutions, issuing and safeguarding currency, and promoting the safe use of mobile money and digital payments.

Closing the first day of the engagement, Masindi Principal Chief Administrative Officer Musa Kyamiza said the interaction had demystified the central bank’s role.

“Previously, we thought the Bank of Uganda was distant and only for Kampala, but this engagement has helped people clearly understand its mandate,” he said, adding that Masindi district would be willing to provide land for a regional currency centre.

BoU Director of Communications, Kenneth Egesa, said the outreach aims to bridge the gap between the institution and the public.

“Our presence here is to bring the Bank of Uganda closer to you. We want to listen and improve how we serve you,” he said.

https://thecooperator.news/bou-targets-shs-990bln-in-treasury-bond-auction-to-fund-govt-operations/

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