The move represents a significant shift in Uganda’s fiscal strategy.
Instead of promoting electronic payments, regulators are now pushing consumers and businesses away from cash and paper-based transactions and towards digital channels.
From January 1, 2027, individuals will be allowed to withdraw a maximum of $13,700 (UGX50 million) per day and $68,500 (UGX250 million) per week over the counter.
Businesses have a daily withdrawal limit of $137,000 (UGX500 million) and a weekly limit of $685,000 (UGX2.5 billion).
At the same time, the Bank of Uganda has lowered check transaction limits in several currencies, further reducing reliance on traditional payment methods.
The maximum value of Uganda Shilling-denominated checks will be reduced from $2,740 (UGX10 million) to $1,370 (UGX5 million).
Dollar check limits will drop from $2,750 to $1,375, while euro-denominated check limits will be reduced from €2,250 to €1,125.
Limits for pound sterling checks will drop from £2,200 to £1,100, while Kenyan shilling check limits will be reduced from KES300,000 to KES150,000.
Why is Uganda doing this now?
The restrictions come as Uganda experiences a rapid expansion in digital finance.
According to Bank of Uganda data, electronic money transaction values will rise 28% to $100.3 billion (UGX366 trillion) in 2025, while transaction volumes will increase 17.3% to 9.1 billion.
Mobile money, long considered one of East Africa’s most powerful financial tools, continues to drive much of that growth.
Mobile money transaction values rose 40% last year to $18.1 billion (UGX66.1 trillion), while the number of active users rose to 36.3 million.
The country’s mobile money agent network expanded by 27.5% to over 1.16 million agents across the country.
Those figures help explain why Uganda’s central bank is poised for a deeper transition away from physical money.
In a circular issued to commercial banks, credit institutions and microfinance deposit-taking institutions, the central bank said the measures are in line with its goal of creating a “modern, digital-first financial landscape” by promoting the use of secure electronic payment channels.
A wider battle over how money moves
Uganda’s decision reflects a broader trend across Africa as governments seek to formalize more economic activity and strengthen oversight of financial transactions.
Tracking cash transactions is difficult, tax collection, anti-money laundering efforts and financial monitoring are more challenging. Digital payments, in contrast, create transaction records that improve transparency and accountability.
For policymakers, this makes digital finance not only a technological tool but also an economic governance tool.
The move could therefore have implications beyond the banking industry, affecting everything from government revenue collection to the growth of the formal economy.
Despite the growth of digital payments, cash remains deeply embedded in many areas of Uganda’s economy.
Small traders, transport operators, rural communities and informal businesses still rely heavily on physical currency for day-to-day transactions.
For many of them, reliable internet access, banking infrastructure and digital literacy remain inconsistent.
That said, the success of Uganda’s cashless push depends on whether digital payment systems can absorb a larger share of economic activity without creating new barriers for consumers and businesses.
For now, Uganda has sent a clear message that after processing over $100 billion (UGX366 trillion) in digital transactions last year, the country believes the future of money is increasingly electronic, and cash may gradually lose its dominant role.
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