Business 12 April 2026 Daily Monitor (Uganda)
Bank of Uganda Issues Governance Guidelines as Fintech Sector Matures
Uganda's central bank has released draft guidelines to strengthen corporate governance in the rapidly expanding fintech sector, where mobile money handles trillions in transactions. The rules aim to replace informal startup practices with robust boards and risk management, amid concerns over outdated structures. Source: https://www.monitor.co.ug/uganda/business/technology/local-fintech-sector-stares-at-its-governance-moment-5420712
Uganda’s digital payments landscape has exploded, with mobile money platforms processing 8.4 billion transactions worth Shs326 trillion in the financial year to June 2025—far exceeding the national budget. This growth has turned fintechs into critical financial arteries, prompting the Bank of Uganda (BoU) to act on governance shortcomings.
Many payment service providers started as lean startups run by founders but now manage massive public funds. BoU’s new draft Corporate Governance Guidelines demand formal boards with independent chairs, staggered terms, and cooling-off periods for directors. Family dominance on boards and executive roles faces limits to promote systemic decision-making.
Firms must establish audit committees, risk units, and technology oversight, with CFOs meeting strict standards. Transparency rules require public websites listing board members and executives. Non-compliance risks suspension or license revocation, tying governance to financial inclusion goals.
A key challenge: Ugandan courts view BoU guidelines as non-binding, creating enforcement gaps despite supervisory leverage. BoU’s Kenneth Egesa notes guidelines offer flexibility amid fast-evolving markets, avoiding overregulation that stifles innovation, with plans to convert them into law later.
Regional peers like Ghana, Kenya, and Tanzania enforce stricter rules, raising stakes as East Africa advances cross-border payments. Investors now see strong governance as a maturity signal for Uganda’s fintech infrastructure.
BoU is ramping up inspections and consumer education, backed by 2022 payment regulations, while aligning with EAC harmonization efforts.
Source: Daily Monitor (Uganda)