Agent Banking Transactions Surge 65% to Shs41.3 Trillion

[Da Dona]

Uganda’s agent banking sector recorded a sharp increase in transaction activity in the year to March 2026, with the value of transactions rising by 65.2 per cent to Shs41.3 trillion.

According to the Ministry of Finance, Planning and Economic Development’s July 2026 Microeconomic Indicators and Developments (MIND) report, transactions conducted through agent banking networks increased from Shs25 trillion in March 2025 to Shs41.3 trillion in March 2026.

The number of transactions also grew by 37 per cent, rising from 10.9 million to 15 million over the same period.

The ministry attributed the growth mainly to increased activity in float purchases and cash deposits, reflecting continued demand for cash-in and cash-out services through agent banking outlets.

The rise highlights the growing role of agent banking in expanding access to financial services, particularly for households and businesses that may not have easy access to conventional bank branches.

The latest economic indicators also showed mixed developments across Uganda’s economy. The Uganda Securities Exchange All Share Index rose by four per cent to 2,141.28 in July, while gross fixed capital formation increased by 1.4 per cent to Shs14.459 trillion during the 2025/26 financial year.

However, businesses, particularly manufacturers and other energy-intensive industries, continued to face cost pressures after electricity tariffs for extra-large industrial consumers increased by two per cent in July to Shs207.7 per kilowatt-hour.

On the consumer side, food and non-alcoholic beverage prices eased, with monthly inflation declining by 0.5 per cent in July.

Meanwhile, Kampala recorded a 42 per cent increase in particulate matter pollution, rising from 37.7 micrograms per cubic metre in June to 53.4 micrograms per cubic metre in July, which the ministry attributed to dry and dusty weather conditions.

Malaria-related mortality also declined by 43 per cent, from 2.3 deaths per 1,000 people in June to 1.3 deaths per 1,000 people in July.

Overall, the indicators point to continued growth in some areas of Uganda’s economy, while rising industrial costs, weaker global commodity prices and deteriorating air quality remain concerns.

The strong growth in agent banking transactions, however, points to an increasingly important role for accessible, community-based financial services in Uganda.

Nile post UG​