Category: Daily Monitor

Iganga Municipality, the commercial hub of Iganga District in eastern Uganda, is headed for a tightly contested mayoral election, with 15 candidates vying for the top local government seat.

Elevated from a town council on July 7, 2010, the municipality elected Mr Siraje Katona as its first mayor (2011-2016).

More than a decade later, residents say development has not matched expectations, citing poor road networks, unfinished infrastructure, weak sanitation systems, and strained health and education services. With polling for Local Council 4 taking place today, candidates have rolled out competing visions centred on modernising markets, expanding and upgrading roads, improving sanitation and street lighting, creating jobs, and strengthening governance.

Former mayor David Balaba (Independent), who served from 2016 to 2021, is seeking to reclaim the seat, banking on his previous experience and name recognition. A university lecturer by profession, Mr Balaba said his return bid is driven by public demand rather than personal gain. ‘The people asked me to come back because they trust my performance, and I still have the desire to work for them,’ he said. If elected, Mr Balaba plans to prioritise completion of stalled projects, particularly the modernisation of Iganga’s main market, which serves traders from at least five neighbouring districts.

He also pledged to revive roadworks, adding that although government funds had been allocated for 10 roads during his previous tenure, only one was completed.

‘With my experience and exposure, including benchmarking in other countries, I know how to follow up these projects and ensure they are delivered properly,’ he said.

Mr Asuman Dhabasadha of the ruling National Resistance Movement (NRM), a former Iganga Central Division chairperson, is making his second attempt at the mayoral seat after losing in 2021. His campaign focuses on infrastructure, education, health and skills development. ‘Iganga has only about five tarmacked roads.

The central business area has potholes, poor sanitation and inadequate lighting. This must change,’ he said. On education, Mr Dhabasadha pointed out that the municipality’s two sub-counties share just one secondary school. He pledged to lobby for at least two seed secondary schools and a Health Centre IV to improve access to essential services. He also promised to support women through government programmes such as the Parish Development Model and to establish a skills training centre.

National Unity Platform (NUP) candidate Nasser Kongola, a relative newcomer to local politics, has based his campaign on infrastructure upgrades and skills development. He said his international exposure would help him lobby effectively for Iganga.

‘I will improve roads, street lights and sanitation, and roll out skilling programmes to empower residents,’ Mr Kongola said, adding that he would build on projects initiated by the outgoing administration to ensure continuity.

FDC candidate The Forum for Democratic Change (FDC) flag bearer, Mr Sowedi Maganda, a municipal councillor and former deputy speaker, said his experience in local government positions him well to deliver better services. He also serves as FDC secretary-general for Iganga District. ‘I understand how this municipality works and where the gaps are. People should trust me to ensure they benefit,’ he said. Mr Maganda pledged to strengthen service delivery, ensure effective implementation of the Uganda Support to Municipal Infrastructure Development (USMID) programme, and protect municipal assets from mismanagement. ‘Municipal land and properties must be safeguarded for public benefit,’ he said.

Independent candidate Enock Ndhazuula, who has spent over 16 years in local government as a councillor, committee chair and deputy mayor, said his priority is economic transformation. He plans to modernise the main market, expand the municipality to accommodate industrial parks and sports facilities, and lobby for inclusion in USMID.

‘Our young people are our greatest resource. Creating jobs through industrial parks will turn idle hands into productive contributors,’ he said, adding that his long-standing relationships with government institutions would help attract support. Mr Musa Sengooba, the current municipal speaker, said he would focus on infrastructure, sanitation and urban management. He pledged to improve roads, health services and street lighting, and to enforce cleanliness by addressing the issue of roaming livestock.

‘We must plan and manage Iganga as a modern, organised city,’ he said. Mr Mivule Grace of the Common Man’s Party said infrastructure safety is his top concern. He proposed constructing pedestrian flyovers at accident-prone spots, including Nakavule Hospital on the Jinja-Iganga Highway and Kigobero along Saza Road.

‘Too many people are knocked while crossing the road. A flyover will save lives,’ said Mr Mivule, a businessman, who promised practical, safety-focused leadership. Veteran councillor Khalifan Taibu (Independent), with 15 years of experience, said he would prioritise accountability, waste management and revenue reform.

He pledged to eliminate illegal tax collectors, improve garbage collection, revive education standards and recover public land allegedly sold fraudulently. ‘If elected, darkness, garbage and illegal taxation will be dealt with decisively,’ he said. Another independent candidate, Mr Katumba Micheal Esagala, a teacher and banker, said his campaign centres on service delivery, particularly sanitation, street lighting, education and economic empowerment. He pledged to support youth and women through Saccos and to professionalise tax collection.

‘Garbage management and security are urgent. Better lighting will also help curb theft,’ he said.

Mr Fred Sebata said persistent disunity among leaders has held Iganga back. He pledged to prioritise unity, infrastructure development and community engagement. ‘This municipality has some of the worst roads in the region. We must work together to fix them,’ he said, adding that he would support municipal expansion. Independent candidate and boda boda rider Kaziba Umar Wagoodo said Iganga attained municipal status before it was fully prepared.

He promised to improve urban planning, protect land rights and lobby for street lighting. ‘People must understand road reserves and land ownership to avoid congestion and land grabbing,’ he said. According to the Iganga District returning officer, Ms Nekesa Assey, other candidates in the race are Mr Mugonzi Wilberforce Wagoina, Mr Kisambira Abubakar, Mr Ngobi Paul and Mr Mawanda James Keith, all independents, who have also pledged to improve service delivery, infrastructure and governance if elected.

MTN Mobile Money recorded strong growth over the past year, reinforcing its role in Uganda’s digital financial ecosystem amid a strategic shift toward deeper customer engagement and expanded digital services.

By the close of 2025, MTN Mobile Money’s user base had grown to more than 14.5 million, up from 13.8 million in 2024, according to MTN Mobile Money managing director Richard Yego.

The growth reflects sustained customer adoption, with the telecom now targeting the addition of at least one million new users this year.

However, Yego says the company’s focus has increasingly shifted from headline user growth to driving more frequent and meaningful usage among existing customers.

That strategy is already yielding results, particularly in digital lending.

The number of unique borrowers doubled to more than eight million, while loan disbursements rose sharply to Shs2.5 trillion from Shs1.4 trillion the previous year.

Ecosystem growth also strengthened, with active agents increasing to nearly 250,000 and active merchants surpassing 100,000, driven largely by a focus on informal traders. Despite the gains, challenges persist.

Transaction frequency averages six transactions per customer per month, below regional benchmarks, while liquidity constraints and taxes on cash withdrawals continue to suppress high-value digital transactions.

In response, MTN is repositioning mobile money as an everyday currency through targeted incentives, expanded merchant solutions, and policy advocacy aimed at lowering transaction costs.

Supported by stronger industry collaboration and ongoing digitisation, the company is aligning its strategy with Uganda’s broader economic transformation agenda.

In this interview, Yego addresses MTN Mobile Money’s performance, regulatory challenges, app adoption, digital lending growth, and the company’s long-term vision of building a more inclusive, cash-lite digital economy.

How did MTN Mobile Money perform last year?

By the close of 2025, our user base had surpassed 14.5 million, up from 13.8 million in 2024, reflecting solid growth. In 2026, we are targeting at least one million new users, which we believe is achievable.

However, our focus is increasingly on deepening usage rather than just growing numbers. This strategy has helped drive meaningful engagement across our services.

On the lending side, unique borrowers doubled to eight million, while loan volumes grew to Shs2.5 trillion, up from Shs1.4 trillion in 2024.

Our next-generation mobile money app, launched in September 2024, attracted over 500,000 users in just three months. Our goal is to increase app usage from 5 percent to at least 20 percent.

We also saw strong ecosystem growth. Active agents increased to nearly 250,000 from about 200,000, while active merchants exceeded 100,000, with a particular focus on informal traders.

What stood out in terms of customer usage and market trends?

Transaction frequency per customer averages six transactions per month, which remains below regional benchmarks. Liquidity constraints continue to be a challenge, although agent growth has improved transaction accessibility nationwide.

Industry collaboration remains critical, as greater interoperability helps lower transaction costs and improves convenience for customers.

How have taxes affected mobile money usage?

The 0.5 percent tax on mobile money cash withdrawals continues to significantly suppress transaction volumes. Introduced in 2018, the tax has pushed some customers back to cash-based transactions.

For withdrawals above Shs500,000, total charges can reach Shs9,500, making digital channels less attractive.

Since its introduction, the tax has reduced high-value digital transactions by an estimated 30-40 percent.

How is MTN responding to these challenges?

Our strategy is to make mobile money an everyday currency, reducing dependence on cash and physical wallets.

We introduced a free daily cash-out of up to Shs500,000 for informal merchants, which helped reactivate dormant agents and encouraged digital spending. We also enabled merchant-to-merchant payments to strengthen liquidity in the informal sector.

At the policy level, we are advocating for a reduction of the withdrawal tax to 0.25 percent, even if extended to other cash withdrawal channels such as ATMs and bank agents, to ensure fairness and promote cashless behaviour.

If government reduces the tax burden, mobile network operators are ready to cut their own withdrawal fees by more than 50 percent, especially on mobile-to-bank transfers.

What role has digital lending played in growth?

Lending has been a major driver of relevance and transaction growth. Unique borrowers increased from 3.5 million to over eight million, while loan values grew more than fivefold to nearly Shs2.5 trillion.

This was largely driven by Mobile Money Advance, launched in September 2024, which allows customers to complete payments even when temporarily short of cash.

Why is app adoption still low?

Despite growth, 95 percent of transactions still occur via USSD, with only 5 percent on the app.

This highlights the need to accelerate smartphone adoption. In 2026, we will roll out new agent and merchant apps, alongside a formal enterprise merchant platform in the first quarter to support payments such as taxes, salaries, and supplier transactions. Key services, including investments, are being migrated from USSD to the app.

Why is industry collaboration critical?

Collaboration with banks, fintechs, and telecom operators is essential for expanding financial inclusion and reducing costs. We are working toward open-loop systems and full interoperability across wallets and banks.

Discussions with the Bankers Association aim to cut bank-to-wallet and wallet-to-bank fees by up to 60 percent. The national payments switch, expected between 2026 and 2027, will further improve efficiency.

What is your long-term strategic vision?

Digital transformation is central to Uganda’s economic growth. Our vision aligns with Uganda’s Tenfold Growth Agenda 2040, which targets GDP growth from $50b to $500b.

Raising smartphone penetration beyond the current 43 percent is critical, and we are advocating for tax waivers to reduce device costs and accelerate digital inclusion.

We are expanding digital solutions for SMEs and agriculture, including stock financing, market access, and digital payments.

Regulatory approval is pending for the separation of MTN Mobile Money as an independent entity following approval from 99.9 percent of shareholders.

Looking ahead, we will scale SME solutions, address the Shs3 trillion monthly agent liquidity gap, and expand products such as virtual cards, investments, and cross-border merchant payments.

For years, East Africa’s financial story has been dominated by scale: Kenya’s deep capital markets, Ethiopia’s bold forex reforms, and Rwanda’s rapid institutional experimentation.

Yet the Absa Africa Financial Markets Index released yesterday reveals a quieter but more disruptive shift.

Uganda has emerged as East Africa’s strongest all-round performer, ranking fourth overall in Africa, ahead of Kenya and Tanzania, and behind only South Africa, Mauritius, and Nigeria.

The rise reflects a combination of macroeconomic stability, legal certainty, and policy predictability, attributes investors increasingly prize in an era of global financial volatility. While several countries have pursued rapid liberalization, Uganda has quietly built credibility through consistency.

Within East Africa, Uganda now outperforms its peers on overall financial market quality. Kenya remains the region’s most liquid and sophisticated capital market, but trails Uganda on macroeconomic stability and legal enforceability.

Tanzania has made steady progress but continues to lag in transparency and market sophistication, while Rwanda has advanced in ESG integration, but its financial ecosystem remains comparatively narrow.

The index indicates that Uganda ranks highly in Africa for macroeconomic stability and transparency, and has avoided boom-and-bust cycles, contained inflation, and maintained fiscal discipline.

This stability has been reinforced by relative foreign exchange resilience at a time when currency volatility has emerged as a major risk facing investors across Africa.

While Ethiopia and Nigeria have implemented sweeping currency reforms, Kenya has faced reserve pressure, and Egypt has undergone sharp devaluations; Uganda has avoided forex shortages and shocks.

The index also highlights Uganda’s institutional and legal strength, placing the country among Africa’s top performers for legal standards.

It also notes that the launch of TradeClear in 2024 has enabled repurchase agreements and derivatives under internationally recognised frameworks, aligning Uganda’s markets more closely with global norms.

Speaking at the launch of the index in Kampala, Secretary to the Treasury Ramathan Ggoobi said Uganda’s improved ranking reflects deliberate policy choices, but warned that structural weaknesses remain.

‘To move Uganda further up the index and deepen our markets, we [need] to expand long-term debt and equity financing for small and medium enterprises, attract venture capital, and lower collateral,’ he said, noting that when the index was first published in 2018, Uganda ranked 10th with a score of 50.

Since then, he noted, improvements in these areas have lifted the country into the top tier of African markets.

Absa acting head of financial markets, Catherine Kijjaggulwe, said Uganda recorded notable gains in domestic investor participation, particularly through pension funds.

The country’s score on the domestic investor pillar rose by seven points, driven by increased pension fund investment in locally listed assets, although she noted that significant room for improvement remains.

NSSF deputy managing director Gerald Paul Kasaato said the pension sector has grown rapidly, with NSSF’s portfolio now standing at Shs28.8 trillion and membership at 3.4 million, though only about 800,000 members are active contributors.

Low capital markets participation

However, he acknowledged that the capital market remains small, limiting meaningful participation by pension funds and other institutional investors.

Despite Uganda’s strengths, the index notes that market depth and liquidity remain shallow, listings are limited, and secondary market activity is thin, well behind Kenya and far below Africa’s heavyweights such as South Africa and Mauritius.

As a result, Uganda attracts conservative capital such as development finance institutions, sovereign investors, and long-term bondholders, but struggles to draw equity investors, venture capital, and higher-risk portfolio flows.

Thus, the challenge remains in converting stability into deeper, broader, and scalable markets that support long-term growth.

An armed robbery suspect found in possession of an assault rifle belonging to the police has accused a senior security commander attached to a key counter-terrorism unit of being behind a criminal gang that has been carrying out armed robberies.

The suspect was arrested following a shoot-out between police patrol officers and armed thugs in Kireka, Kira Municipality, Wakiso District, last week. During the confrontation, police recovered the firearm, which preliminary investigations indicate belongs to a specialised anti-terrorism unit. A security source, who requested anonymity because of the sensitivity of the matter, said one suspect was shot dead during the exchange of fire, while another surrendered with his rifle.

The surviving suspect reportedly pleaded for his life, promising to reveal those behind the criminal gang. According to the source, the suspect alleged that the robberies were being carried out on the orders of a senior military commander attached to one of the country’s counter-terrorism units. ‘The police have commenced investigations, and our sister security agencies have also been informed to jointly participate in the probe since a senior military officer has been named,’ the source said. When contacted for comment, Kampala Metropolitan Police spokesperson Rachael Kawala declined to discuss the matter and referred the Daily Monitor to the national police spokesperson, Mr Kituuma Rusoke.

However, Mr Rusoke did not respond to questions sent to him last week. This is the second incident in six months in which firearms belonging to an anti-terrorism unit have been recovered from suspected criminals. In July last year, two assault rifles belonging to a counter-terrorism unit were recovered during an operation against suspected robbers in Kifuta Village, Kibira Sub-county, Kyotera District. The suspects were allegedly planning to rob a coffee dealer of Shs50 million. In the Kira Municipality incident, police suspect the recovered gun may have been used in several robberies that have rocked Kampala Metropolitan East since last year. Investigators are yet to establish who had the firearm before it was allegedly used in the robberies.

Police sources say most firearms issued to security agencies are recorded in forensic databases, making it possible to trace their history and usage. Authorities say there has been a rise in armed robberies in Kira Municipality, Wakiso District, and parts of neighbouring Mukono District. In November last year, armed attackers shot dead the Officer-in-Charge of Ntawo Police Post, Assistant Superintendent of Police Emmanuel Bagenda. Since April last year, two men armed with assault rifles have been captured on CCTV cameras robbing mobile money outlets and wholesale businesses in Kira Municipality and parts of Mukono District.

Mr Rusoke previously said intelligence reports indicated that the crimes were being carried out by organised criminal gangs. He added that security agencies were still hunting for suspects who escaped during recent operations. In mid-2025, Mr Rusoke reported similar incidents in Namugongo Division in Kira Municipality and Goma Division in Mukono District, where residents were attacked by thugs armed with machetes and knives.

‘The attackers began their spree in Nabweru in Mukono District, then continued through Kyaliwajjala and Sonde in Wakiso District, before proceeding to Seeta Town in Mukono. On their return to Nabweru, they committed another robbery at Namanve Industrial Park along the Kampala-Jinja highway,’ he said. The affected areas are predominantly residential neighbourhoods housing hundreds of middle- and working-class residents who provide labour to Kampala City and the industrial hubs of Wakiso and Mukono districts.

Security in Kayunga District has been heightened in all major trading centres ahead of today’s court hearing of an application filed by National Resistance Movement (NRM)’s Jackline Birungi, in which she is seeking a recount of ballots from all 105 polling stations after she lost the Kayunga District Woman MP race.

Ms Harriet Nakwedde of the National Unity Platform (NUP) was declared the winner of the race with 20,753 votes, while Ms Ida Nantaba (Independent) got 16,138 votes as Ms Birungi came third with 15,790 votes, following the January 15, 2026, General Election.

However, the returning officer, Ms Doglous Twine, declared Ms Nakwedde the winner without tallying results from all the polling stations, something Ms Birungi says denied her victory.

Following the protests that followed the declaration, Mr Twine was transferred and replaced with Ms Elizabeth Namirembe, who was the Ntungamo district returning officer.

Today, Mr John Francis Kaggwa, the Kayunga Chief Magistrate, is hearing the application in which he is to give a ruling on whether to tally the 105 polling stations or not.

Hundreds of NUP supporters who wanted to witness court proceedings were blocked from accessing the premises of the court at the district headquarters in Ntenjeru.

The US Senate Committee on Foreign Relations and Members of the European Parliament (MEPs) have separately called into question the conduct and results of the January 15 presidential elections in Uganda.

The two groups called for an independent, impartial, and transparent investigation into the credibility of the election results as well as reported killings, acts of violence, and human rights violations committed before, during, and after the polls. They also cited preliminary reports by the election observer missions from the African Union (AU), the Common Market for Eastern and Southern Africa, and the Inter-Governmental Authority on Development, as well as civil society groups that said:’the elections did not meet basic democratic standards.’

Senator Jim Risch (R-Idaho), the chairman of the US Senate Foreign Relations Committee, described the Ugandan elections as a ‘hollow exercise staged to legitimise President Museveni’s seventh term and four decades in power.’

Mr Risch said in a statement that Uganda is also linked to destabilising regional activities, including in South Sudan, making the regime an increasingly problematic exporter of instability. ‘Tanzania and Uganda are moving along similar paths, raising serious concerns about what this portends for other countries with upcoming elections, including Ethiopia and Kenya,’ he said. For more than four decades, Uganda has closely collaborated with the US on security operations in the region and across the continent.

The US government has, since 2007, provided more than $2b (about Shs7.4t) for military operations in Somalia, where the Uganda People’s Defence Force (UPDF) has been the largest troop contributor to the African Union Missions (AMISOM) that has since transitioned into ATMIS and AUSSOM. Both the EU and the US government have been pivotal in providing both security and humanitarian aid to Uganda to bolster its management of the refugee influx from the unrest in South Sudan, the Democratic Republic of the Congo (DRC), and the Horn of Africa.

But Mr Risch urged the US administration to reassess its security relationship with Uganda, beginning with a review of whether sanctions are warranted under existing authorities against specific actors, including Gen Muhoozi Kainerugaba, the Chief of Defence Forces. Over the past decade, Uganda has suffered a strained relationship with the West, including sanctions on its top government officials, among them Parliament Speaker Anita Among, over allegations of corruption and human rights violations. But Presidential Press Secretary Sandor Walusimbi has dismissed the reports as ‘unserious matters.’

‘Why don’t you ask those people to ask me these questions? Why are you being their agent? First, have you done an investigation of what they are raising to see whether they are true or not? Next time, call me for a comment on serious matters, not these trivialities. But also, I am not surprised that these questions are coming from Daily Monitor,’ Mr Walusimbi said, furiously.

The January 22 letter by Senator Risch to President Museveni also asked for investigations into what they termed as arbitrary arrest and continued detention of Dr Sarah Bireete, who has been charged with unlawfully obtaining or disclosing voters’ personal data. On January 15, 2026, Justice Simon Byabakama, the Electoral Commission chairman, under total internet blackout, declared Mr Museveni, 81, winner of the presidential elections, after it reported he had garnered 71.65 percent of the total votes cast.

The MEPs indicated that the arbitrary arrests of Opposition politicians, and a nationwide Internet shutdown, followed months of voter suppression, including restrictions on opposition activities, harassment and detention of political activists, violent attacks on Opposition campaign rallies, voter intimidation, and severe limitations on freedoms of assembly, expression, and movement, made the election process fall below democratic standards. ‘Collectively, these actions seriously call into question the credibility of the electoral process and the effective exercise of rights by Ugandan citizens,’ read in part a letter from Members of European Parliament.

Violence.

Collectively, these actions seriously call into question the credibility of the electoral process and the effective exercise of rights by Ugandan citizens,”- letter from Members of European Parliament

Just like the January 15 parliamentary elections, the ruling National Resistance Movement (NRM) party has again proved its political prowess, sweeping the majority of district and mayoral seats across the country.

However, the victories did not come easily. In some districts, the NRM victory was contested at tally centres while in some places, Opposition ticket holders were announced winners, but moments later, the Electoral Commission (EC) returning officers overturned their decisions, declaring the NRM flag bearers as winners. In Mukono District, there was drama and tension last Friday after the district returning officer, Ms Emily Amongin, declared two winners for the LC5 chairperson post.

At around 3pm, Ms Amongin declared Mr Johnson Muyanja Ssenyonga of the National Unity Platform (NUP) party as the winner of the tense Thursday polls, saying he had garnered 51,686 votes and his closest contender, Mr Francis Lukooya Mukoome of NRM, had polled 50,254 votes, which was a difference of 1,432 votes, while the other candidate, Mr Lauben Ssenjonjo, who contested on the Independent ticket, garnered 2,995 votes. After making the declaration, Ms Amongin was allegedly dragged out of the tally centre by a group of soldiers and some NRM officials led by the party’s district chairperson, Mr Haruna Ssemakula. By the time Ms Amongin was forced out of the tally centre, she had not given Mr Muyanja a copy of the official declaration of results sheet.

After a closed door meeting that dragged on for hours, Ms Amongin emerged from the room at around 6:30pm and rescinded her earlier declaration. This time without explaining the circumstances, she declared Mr Lukooya as winner with 52,523 votes, saying Mr Muyanja had polled 52,105 votes, indicating a margin of 418 votes while Mr Ssenyonjo had 3,095 votes. One of the NRM leaders who preferred anonymity for fear of being reprimanded, told this publication that during the meeting, several ballot papers were ticked in favour of Mr Lukooya and stuffed into a ballot box before Ms Amongin was coerced to write another declaration of results form. However, Daily Monitor could not independently verify this claim by press time.

Also by press time, Ms Amongin had not responded to our calls over the matter. The NRM chairperson in Mukono, Mr Semakula, however, denied being involved in vote rigging at the tally centre, as alleged by some voters. ‘I just went to the returning officer with my team to tell her to declare the right person because she had made a mistake of declaring Muyanja, NUP and yet for us we know that it’s Lukooya NRM who had won, so that’s why we engaged her in a meeting to correct the results and announce the right person,’ he said. In Wakiso, NUP flag bearer for district top seat Nasiif Najja claimed he had won the race. He said the returning officer, Mr Tolbert Musinguzi instead declared NRM’s Ian Kyeyune winner with 177,710 votes. The declaration sheet showed that Mr Najja got 99,235 votes.

A total of 3,003 votes were invalid, 578 spoilt. When Mr Najja, the current district speaker tried to protest Mr Musinguzi’s declaration, he was roughed up by security operatives who left him nearly naked. The Democratic Front (DF) flag bearer came third with 10,597 votes. Also, several NUP flag bearers for the councillorship also raised similar sentiments and were forced out of the tally centre. In Masaka District, NRM leaders are still jubilating after the party flag bearers won the top district seat and majority of the councillor slots.

Masaka District returning officer, Ms Mable Kwarikunda announced Mr John Kakande (NRM), an educationist, as the newly-elected candidate with 13,262 votes, while Mr John Sekasiko of the Democratic Party (DP) got 5,671 votes and Mr Francis Kimuli Sempala (NUP) came third with 5,577 votes. NRM also won in other districts in Buganda sub-region, including Bukomansimbi, Lyantonde, Kyotera, Rakai, Sembabule, Gomba, Kalangala, Buvuma, Kassanda, Mityana,Kayunga, Mukono, Nakasongola, Nakaseke,Kyankwanzi,Butambala and Mubende. NUP only won in districts of Kalungu, Buikwe, Mpigi, Luweero, Lwengo as well as the two cities of Kampala, Masaka.

The sub-region has 26 districts. NRM also maintained its political dominance in sub-regions of Tooro, Rwenzori, and Bunyoro with its candidates overwhelmingly defeating Opposition contenders. The three sub-regions comprise two regional cities, Fort Portal and Hoima, and 17 districts. While voters in the two cities elected independent candidates as mayors, the NRM swept nearly all district chairperson positions, reaffirming its grip on local government leadership. In the city mayoral races, Rev Kintu Willy Muhanga won in Fort Portal City, while Mr Edward Isingoma emerged victorious in Hoima City. The duo contested as independent candidates.

In Hoima, incumbent mayor Brian Kaboyo of NRM was defeated, while in Fort Portal City, the incumbent Edison Asaba Ruyonga, also of the NRM, did not seek re-election. At the district level, NRM recorded a landslide victory, winning 14 out of the 17 LC5 chairperson seats. Most of the victorious NRM candidates were incumbents who successfully bounced back. The remaining three seats were won by independent candidates, all of whom are politically aligned with NRM after losing party primaries last July.

Notably, the elections marked historic back-to-back victories in Kasese and Kamwenge districts, areas traditionally known for one-term leadership turnover. Mr Eliphaz Bukombi Muhindi of Kasese District and Joseph Karungi of Kamwenge District both retained their LC5 seats for a second term, an unprecedented achievement in these districts. In Kamwenge, since its creation from Kabarole District in 2000, all previous chairpersons had served only a single five-year term. While Ms Efrance Kenyonyozi, the Kitagwenda District chairperson-elect, was declared unopposed.

The Opposition only managed to win two of the 12 seats. The districts of Bugiri, Namayingo, Namutumba, Kaliro and Jinja had their current chairpersons voted back. Mr Meddy Mbetyo, the national deputy secretary for mobilisation for Eastern Region in the Forum for Democratic Change (FDC) , cited lack of unity as a major factor behind the Opposition’s defeat in the area. ‘Efforts are wasted when selfish interests take centre stage. We must be united to succeed,’ he explained. In Kigezi Sub-region, the pattern did not change. A section of leaders in the sub-region attribute NRM’s victory to strategic mobilisation tactics that included the establishment of 63 taskforce members in every village.

‘The NRM party flag bearers were able to win the district LC5 chairperson seats here because of vigorous mobilisation campaigns that emphasised the explanation on NRM party gains to the community members and the importance of protecting such gains,’ Mr Moses Mr Moses Turyomurugyendo Ntahobari, the NRM secretariat grass root coordinator for Kigezi, said. It’s only in Kanungu District where NRM party flag bearer Justus Tibesigwa lost to Mr Francis Byamukama (Independent). The Kanungu District NRM party chairperson, Mr Caleb Kipande, attributed the loss to the NRM party primary elections that were marred by several irregularities. ‘We do not have Opposition leaders in Kanungu District.

All the independent candidates that won the final elections were as a result of the poorly-managed NRM party primary elections that were characterised by several irregularities that were against the will of the people,’ Mr Kipande said. In Acholi Sub-region, a total of seven incumbent district chairpersons across the eight districts lost their seats. Only Mr Sisto Oyet, the incumbent LC5 chairperson of Lamwo District, secured a re-election, beating his rival, Mr Jimmy Amone, an independent candidate, by a difference of 255 votes after polling 17,766 against Mr Amone’s 17,521 votes. In Omoro District, NRM’s Douglas Peter Okello, the incumbent, lost to Mr Andrew Okot who polled 20,507 votes against his 10,020 votes.

In the neighbouring Gulu District, DP candidate Justine Obol defeated incumbent Christopher Opiyo Ateker, of NRM. Mr Obol garnered 9,983 votes against Mr Opiyo’s 3,507 votes. In Kitgum District, DP’s Christopher Obol Arwai, the incumbent chairperson, lost to NRM’s Tonny Olenge Tolit. Meanwhile, a youthful Wilson Otto (Independent) brought to an end a two-term dominance of Mr Leonard Opiyo Ojok (NRM) as the Agago District chairperson. He secured a total of 26,865 votes against Mr Ojok’s 20,898 votes. In Pader, Mr Alfred Akena (Independent), while speaking to the media upon being declared by the EC as winner in LC5 chairperson’s race, said poor road network, slow economic development and gaps in education and health services in the district were the basis of his decision to return to politics.

‘Services are poor, right from agriculture, education, health, among others, and indeed, infrastructure is worse. Our strategy will ensure that basic road networks are refurbished to help farmers link with better markets, which is a priority, and also revive all the dormant ordinances on alcohol and education in the district, among others,’ he said. Mr Akena, who garnered 20,779 votes, beat the incumbent, Fearless Obwoya Oyat (NRM), who got 4,895 votes, to regain the seat he lost 10 years ago.

The electricity generation subsector is positioning itself for a new phase of growth.

Marked by regional integration, private investment, and stronger accountability, the power sector is looking for markets to supply surplus electricity as well as use it as leverage for expanding capacity and modernising the power market.

George Tusingwire Mutetweka, the chief operations officer of Uganda Electricity Generation Company Limited (UEGCL), says they have outlined the sector’s progress and future direction while representing.

The evolution of Uganda’s power sector has moved from Uganda Electricity Board (UEB) to the current unbundled structure, which Mutetweka highlights as a major milestone in power generation.

From the commissioning of Kiira and Isimba dams to the development of Karuma and smaller hydropower plants such as Nyagak, Uganda has steadily expanded its generation capacity. ‘These projects have strengthened domestic supply and enhanced cross-border power trade,’ Mutetweka says, pointing to regions such as West Nile, where communities straddle Uganda and DR Congo.

Demand imbalance

Despite increasing capacity, Mutetweka says Uganda’s electricity demand profile still reflects a developing economy.

Power consumption peaks sharply between 6pm and 10pm, largely driven by household use rather than industrial activity.

‘That difference tells you we are still a developing country. In advanced economies, factories run 24/7, keeping demand steady. Here, our capacity planning is driven almost entirely by evening demand,’ Mutetweka says.

To address this imbalance, Uganda is exploring innovative investment models to stimulate industrial consumption.

Mutetweka cites examples from US, where Public District Utilities allow farmers and cooperatives to finance power plants by securing long-term industrial off-takers such as aluminium smelters or data centres.

He says similar approaches could enable Ugandan communities and private investors to participate directly in generation, particularly as demand grows for energy-intensive infrastructure such as data centres, electric vehicles, and manufacturing hubs.

Regional opportunities

Uganda is also preparing to join the East African Power Pool, a regional electricity market that will enable countries stretching from DR Congo to Egypt to trade power as a commodity.

‘Power is becoming like sugar or fuel; it is no longer just a service,’ Mutetweka says. ‘Anyone who understands the market can invest and participate.’

He urges stakeholders to familiarise themselves with the emerging market structures, noting that regional integration could significantly enhance Uganda’s role as a power exporter.

Accountability and safety

Beyond capacity expansion, Mutetweka emphasizes accountability, safety, and transparency as central to the sector’s sustainability.

He credits media engagement for keeping the industry responsive to public concerns and praises UEGCL for maintaining high safety standards.

‘In 2025, we recorded zero fatalities among staff and contractors,’ he says.

Surplus electricity

Uganda’s power generation drive has already resulted in a significant supply surplus. According to Electricity Regulatory Authority (ERA), installed capacity reached 2,048 megawatts by December 2024, while peak demand stood at just 985 megawatts, leaving a surplus of 1,063 megawatts.

This has largely been driven by the completion of the 600 megawatt Karuma Hydropower Dam, which became fully operational in September 2024 after years of delays.

The project is Uganda’s largest hydropower investment to date and positions the country as a potential regional energy exporter.

However, analysts warn that the surplus may be short-lived. Energy sales are growing at an estimated 17 percent annually, and industrial consumers continue to face challenges linked to transmission and distribution bottlenecks.

Electrification gap persists

Despite progress, access to electricity remains uneven. Uganda still has one of the lowest electrification rates in Africa, with heavy reliance on biomass and limited off-grid solutions.

While 76.4 percent of urban households have access to electricity, rural access stands at 42.4 percent, bringing the national average to 51.5 percent.

Transmission expansion has exceeded targets, with 4,962 kilometres of power lines in place by December 2024, surpassing the 2025 goal of 4,354 kilometres.

Nonetheless, infrastructure constraints mean that some generated power cannot be fully delivered to consumers, while system losses stood at 17 percent in 2024.

Ambitious targets ahead

Looking ahead, Uganda’s energy sector aims to scale installed capacity from the current 2,000 megawatts to about 52,000 megawatts by 2040.

Mutetweka says the target, while ambitious, is grounded in global benchmarks for per capita electricity consumption.

‘Ugandans deserve the same access to power as people anywhere else,’ he says. ‘This is not a dream, it’s a goal.’

As the sector evolves, future growth will depend not only on government investment but also on private participation, regional cooperation, and sustained accountability.

For businesses, communities, and investors, the opportunities are significant, provided they are ready to seize them.

Banks posted record profits and strong capital buffers in 2025, supported by tougher capital rules that have quietly reshaped the industry over two years.

The banking sector is experiencing one of its strongest periods in recent history, delivering record profits, robust capital buffers, and increasing public confidence.

Yet, the regulatory environment has quietly reshaped the industry’s structure, reducing the number of top-tier banks.

The Bank of Uganda Annual Supervision Report 2025 paints a picture of a sector that has emerged resilient from a challenging global environment marked by tightening financial conditions, elevated interest rates, and persistent geopolitical uncertainty.

Instead of belt-tightening, the bank sector expanded earnings, strengthened balance sheets, and continued lending. This underscores what the central bank describes as a stable and sound financial system.

Profits surge

At the centre of the strong performance was a 36 percent jump in net after-tax profits, which surged to Shs1.9 trillion in the year ended June 2025. The profit surge represents one of the fastest growth rates recorded by the sector in recent years, reflecting both favourable market conditions and improved internal risk management.

Banks benefited significantly from higher interest income, particularly from government securities (debt), loans, and placements.

As interest rates remained elevated, lenders were able to widen margins while carefully managing funding costs.

At the same time, provisions for bad debts declined by more than 20 percent, signalling improved loan performance and stronger credit underwriting standards.

These trends fed directly into profitability metrics, while the industry’s return on average assets, which evaluates how well assets are used to produce profits, rose to 3.3 percent, up from 2.9 percent the previous year.

Returns on equity, a measure of the sector’s ability to generate profits from every shilling of shareholders’ investments, also strengthened.

These numbers suggest that banks are not merely expanding balance sheets but are doing so with greater efficiency and discipline.

Capital and liquidity

Beyond profitability, Bank of Uganda highlights what it considers the sector’s greatest strength: capital resilience.

By June 2025, the banking system’s core capital to risk-weighted assets ratio, which measures the sector’s financial stability, stood at 25 percent, comfortably above the statutory minimum of 12.5 percent.

All supervised financial institutions complied with leverage ratio requirements and systemic risk buffers, providing a robust shield against unexpected shocks.

Such capital levels, the central bank argues, give banks the capacity not only to absorb losses but also to attract additional investment and continue supporting economic growth.

In a region where banking crises have historically imposed high monetary costs, this resilience carries particular significance.

Liquidity conditions were equally strong, with customer deposits rising sharply to Shs41.6 trillion, up from Shs36.4 trillion a year earlier.

Deposits accounted for more than 83 percent of total bank funding, confirming their role as the sector’s primary and most stable source of finance.

Bank of Uganda notes that the growth in deposits reflects sustained public confidence in the banking system, supported by a relatively favourable macroeconomic environment and the absence of major bank failures.

Credit position

Despite global tightening, banks continued to lend, with total loans, according to Bank of Uganda, growing by 9.2 percent, reaching Shs23.9 trillion, an acceleration from the previous year’s growth rate.

The expansion was complemented by alternative lending channels, including government programmes such as the Parish Development Model (PDM) and Emyooga, which have broadened access to credit for households, small businesses, and targeted sectors.

When these programmes are included, private sector credit growth remained in double digits, rising to 13.3 percent. This combination of formal bank lending and state-backed financing has helped cushion the economy against external shocks while advancing financial inclusion goals.

Tougher rules

Yet, while the overall picture is one of strength, the report also documents a quiet but consequential shift in the banking sector’s structure.

Following the increase in the minimum capital requirement for commercial banks from Shs25b to Shs150b, three tier one lenders, ABC Capital Bank, Guaranty Trust Bank, and Opportunity Bank, were downgraded to tier two credit institutions.

The decision reduced the number of licensed commercial banks from 25 to 22, effective July 2024. Tier two institutions operate under a different regulatory framework, focusing primarily on savings and time deposits and facing lower capital thresholds than full commercial banks.

Bank of Uganda, however, noted that the downgrades were not driven by financial distress, but strategic choices by shareholders to align their business models with regulatory expectations and capital realities.

Consolidation without crisis

Unlike past episodes of banking sector contraction, often marked by failures, forced mergers, or depositor losses, the adjustment unfolded without disruption, with no depositor losses, while the system remained stable throughout the transition.

This validated the central bank’s policy approach that emphasises preventive strength over reactive rescue.

By raising capital requirements early, Bank of Uganda sought to ensure that only institutions with sufficient scale, governance capacity, and risk-management sophistication operate at the highest tier.

This approach mirrors trends across emerging and developed markets, where regulators increasingly favour fewer but stronger banks capable of withstanding volatility, technological disruption, and climate-related risks.

However, consolidation carries trade-offs, where fewer commercial banks could mean reduced competition in some market segments, potentially affecting pricing and access to services.

Bank of Uganda acknowledges these concerns but argues that the long-term benefits, financial stability, depositor protection, and reduced systemic risk, outweigh the costs, such as the likelihood of taxpayer-funded bailouts and economic disruption.

A sector entering a new phase

Details in the Bank of Uganda report suggest that the banking sector has entered a new phase of maturity.

Profitability is strong, capital buffers are deep, and public confidence remains high. At the same time, regulation is becoming more demanding, pushing banks to make strategic choices about scale, scope, and sustainability.

For investors, the numbers signal stability and opportunity, while for smaller players, however, the regulatory environment suggests that the era of low entry barriers and light capital requirements is firmly over.

Bank of Uganda is moving ahead with further reforms, including digital supervision systems, enhanced risk-based oversight, and alignment with global prudential standards.

The sector is likely to become leaner, more disciplined, and more resilient.

This is highlighted throughout the report, emphasising that the banking story in 2025 was no longer about survival, but about strength, structure, and the hard choices that come with progress.

President-elect Yoweri Museveni has petitioned the Supreme Court to throw out a challenge to his re-election, insisting that the January 15 presidential polls were conducted strictly by the book.

Mr Museveni’s victory is being contested by Mr Robert Kasibante of National Peasants’ Party, a former presidential candidate, who seeks to have the win overturned, citing alleged widespread irregularities, violence, and misuse of state resources, among other grievances.

At the heart of his defence, filed yesterday through his lawyers despite the public holiday, Mr Museveni maintains that he was duly elected in line with the country’s laws. He argues that even if there had been any minor breaches, which he flatly denies, they were not significant enough to upset the apple cart or warrant annulment by the court.

‘I was validly elected in accordance with the principles laid down in the provisions of the Constitution, the Electoral Commission Act, and the Presidential Elections Act,’ Mr Museveni asserts before the apex court.

Contention

In his January 17 petition, Mr Kasibante contends that the entire electoral process, from voter registration to tallying and declaration of results, was riddled with illegalities and blatant violations of the Constitution, the Electoral Commission Act, and the Presidential Elections Act.

‘The petitioner (Mr Kasibante), dissatisfied and aggrieved by the conduct of the elections held on January 15, challenges the validity of the election. The election was neither free nor fair and was characterised by non-compliance with electoral laws,’ Mr Kasibante states in his petition. The respondents are President-elect Museveni, the Electoral Commission, and the Attorney General. Mr Museveni is represented by KandK Advocates and KandK Chambers.

Allegations of violence

Mr Kasibante accuses Mr Museveni and state security agencies of orchestrating widespread violence, intimidation, and harassment of Opposition candidates and supporters. But Mr Museveni, in his defence filed yesterday on NRM Liberation Day, denies the accusations.

‘The 1st Respondent (Museveni) denies acting through the armed forces to inflict violence upon the candidates as alleged or at all, and avers that there was no violence inflicted on the candidates by the armed forces with his knowledge and consent or approval,’ he insists.

Mr Kasibante alleges that the UPDF and police disrupted Opposition rallies, assaulted candidates, and issued unlawful directives forcing voters to leave polling stations immediately after casting their ballots. He cites incidents such as the Gulu episode, where security personnel reportedly beat NUP supporters, leaving them bleeding profusely.

Misuse of state resources

Mr Kasibante further claims Mr Museveni used government resources during his campaign, including vehicles, security forces, public institutions, and state media, to tilt the playing field. ‘Notably, the New Vision newspaper consistently featured the first Respondent on the front page, displaying full-page coverage with images of the campaign activities throughout the entire election period,’ the petitioner said. Mr Museveni, however, rubbishes the claims.

‘The 1st Respondent (Mr Museveni) shall state that government facilities used during the campaign were restricted to only those ordinarily attached to and utilised by the President in accordance with the Presidential Elections Act, Cap 179. The 1st Respondent further avers that no such illegal use of government resources, which is denied, took place with his knowledge and consent or approval,’ he avers. Mr Kasibante also alleges that police and UPDF vehicles were used to ferry Museveni’s supporters to rallies across the country.

Voter bribery allegations

Mr Kasibante accuses Museveni’s agents, including musician Moses Ssali, alias Bebe Cool, under the ‘Unstoppable Campaign Team,’ of bribing voters in Kampala, Jinja, Mbale, and Soroti with more than Shs100m. He also claims Museveni knew of the alleged irregular giving of Shs3 billion to a group of mechanics in Kampala.

Mr Museveni denies these allegations, saying: ‘The 1st Respondent (Mr Museveni) shall aver that neither Moses Ssali Alias Bebe Cool nor the Unstoppable Campaign Team bribed or induced voters, as alleged or at all, with his knowledge and consent or approval.’ He adds: ‘In specific answer to paragraph 4(a) (29) of the petition, the 1st Respondent denies knowledge of the 2nd Respondent extending Shs3b to some mechanics group in Kampala, and states that no such acts, which are denied, took place with his knowledge and consent, or approval.’

Failure of biometric machines Mr Kasibante also challenges the use of Biometric Voter Verification Kits (BVVKs), claiming they failed miserably during the polls, were unreliable, and lacked a proper legal framework. Sources suggest the failures were likely due to the Internet shutdown, causing voting delays of up to four hours at thousands of polling stations. The EC extended voting by an hour and reverted to manual rolls. Mr Museveni counters that the hiccups did not disadvantage voters, as the voters’ roll was used.

‘I know that the election was conducted in accordance with the principles laid down in the provisions of the law. he persons appearing on the National Voters’ Register/Voters’ Roll and could be identified, were allowed to vote, and it is not true that there was any disenfranchisement that operated to my advantage as alleged or at all,’ he said.

Mr Museveni also defends the counting, tallying, and transmission of results, insisting the process was done transparently, in full view of candidates and their agents. With Mr Museveni’s response filed, the Supreme Court under Chief Justice Flavian Zeija is expected to lay down the law and issue guidelines to ensure the petition is disposed of within 30 days, as required.