Bank of Uganda Strengthens Security After Breaches, Governor Tells Parliament

Governor Michael Atingi-Ego has revealed that the Bank of Uganda (BoU) has significantly bolstered its internal controls in response to recent security lapses.

Speaking before the Parliamentary Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) on Monday, September 7, 2026, Atingi-Ego stated that the central bank has conducted a thorough review of its systems. “We have looked at them and where there are any perceived weaknesses, we have strengthened them. And we are confident in that,” he assured the committee.

The Governor clarified that one incident, previously described as hacking, was actually a case of fraudulent payments. He opted not to disclose specific details of the new security protocols publicly, citing the need to prevent “bad boys” from exploiting vulnerabilities, suggesting such information could be shared in a closed session.

This discussion occurred during COSASE’s scrutiny of the BoU’s financial statements for the fiscal year ending June 30, 2025. Atingi-Ego confirmed the Auditor-General issued an unmodified audit opinion, indicating the bank’s financial statements present a true and fair view. Key audit matters concerning expected credit losses and litigation did not lead to a qualified opinion.

The committee also raised concerns about consumer protection, including loan terms, recovery charges, and access to complaint resolution. COSASE chairperson Hon. Muwada Nkunyingi criticized the reliance on suggestion boxes as a “lacklustre response” and urged for a more accessible complaint system.

Members also questioned the BoU’s regulatory stance on commercial banks accused of mistreating customers and the protection of borrowers from aggressive recovery practices. Representatives from the bank assured the committee that consumer protection guidelines are in place, requiring financial institutions to provide borrowers with detailed key facts documents.