In Kijunjubwa Sub-county, Samuel Kaigi oversees a thriving herd of goats – now numbering more than 400. He started with 80 animals just last year and has since turned his small enterprise into a fast-growing venture. Although he has never lost money in his short farming journey, there was something he didn’t know: a national safety net exists to protect his savings should a bank collapse.
Kaigi made this revelation during the Seeds of Gold Farm Clinic at Bulindi Zonal Agricultural Research and Development Institute (Zardi) in Hoima, where he had come to learn more about productive goat farming. ‘I didn’t know that a product like the Deposit Protection Fund (DPF) was there to protect farmers. I thought only business people benefited from such things,’ he admitted.
He was among the hundreds of farmers who gathered at the Farm Clinic to learn from researchers, extension officers and financial experts.
But amid the demonstrations on climate-smart technologies and livestock management, it was a team from the Deposit Protection Fund of Uganda (DPF) that delivered the most unexpected message: where farmers keep their money matters as much as how they grow their crops.
Why farmers avoid banks
In Bunyoro, many farmers keep their money in cash or entrust it to informal savings groups. The region’s rural banking penetration remains low, with few commercial bank branches reaching the more remote sub-counties. Long distances to banking facilities and a lack of proper documentation of farming activities keep many farmers outside the formal financial system.
Meanwhile, mistrust has grown around some Savings and Credit Cooperative Organisations (SACCOs), with reports of mismanagement and some operators disappearing with farmers’ savings. This has left farmers vulnerable – without safe places to store their earnings or build up reserves that could cushion them during hard times. As a result, farmers remain vulnerable and miss opportunities to save or invest safely.
Rural banking penetration in Bunyoro is low: only about 13 per cent of adults have bank accounts, leaving the vast majority outside the formal system.
Nationally, 32 per cent of rural adults hold bank accounts, and just 7 per cent save in commercial banks. The informal and semi-formal systems – such as SACCOs and mobile money – help bridge the gap, but they cannot fully replace the protection and growth opportunities offered by formal banking.
The safety net
The Deposit Protection Fund of Uganda (DPF) is a government-backed institution designed to protect depositors if a bank closes. According to Patrick Ezaga, the Director of Communications at DPF, the fund guarantees payment of up to Shs10m per depositor in case a financial institution fails. This coverage includes 98 per cent of deposit accounts in the country – the majority belonging to low-income earners like farmers. Uganda has more than 24 million bank accounts, but many rural farmers are not among them.
‘Agriculture remains the backbone of livelihoods. We need to be where the farmers gather. Some of them are depositors, and we have to be there to build confidence that their money is safe,’ Ezaga noted during the farm clinic. Ezaga urged farmers to update their personal information and embrace formal banking to reduce the risks associated with idle cash and unregulated financial groups. ‘If you don’t have a bank account, open one today. Idle money is bad money and risky. We want to build confidence that you move your money to safe custody,’ he said.
Why financial inclusion matters for agriculture
Financial inclusion plays a crucial role in agricultural productivity. Farmers who access formal financial services can buy quality inputs, invest in livestock, irrigation, or storage, and plan for the future. Savings and credit also help farmers withstand shocks like droughts, floods, or pest infestations without being forced to sell assets at a loss or take high-interest loans. When farmers keep their money within the formal financial system, they gain access not only to protection like DPF but also to opportunities for growth through credit, insurance, and secure transactions. This financial stability is especially vital in regions like Bunyoro, where climate change has made rainfall increasingly erratic, exposing smallholders to greater risks.
In Uganda, agriculture employs about 70 per cent of the workforce and contributes around 24 per cent of GDP, yet most farmers are underbanked. By linking farm incomes to secure banking, farmers can stabilise their operations, access credit, and improve productivity – all while contributing to broader food security and rural economic growth. For Kaigi, the clinic was more than just a learning opportunity for goat management – it opened his eyes to the importance of securing his earnings. ‘I am going to encourage farmers in my community to open bank accounts,’ he said.
His story mirrors a broader shift that financial experts hope to see in rural Uganda: farmers embracing financial services not just as clients, but as active participants in a system that can protect and grow their wealth. Still, the journey toward full financial inclusion in Bunyoro will require sustained outreach, infrastructure development and trust-building. For many farmers, opening and maintaining a bank account remains a distant idea. But initiatives like the Seeds of Gold Farm Clinic are slowly changing attitudes by bringing information to where farmers are.