The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | The Deposit Protection Fund (DPF) is considering reviews to enhance its operational mandate of providing statutory protection to account holders in commercial banks.
The reviews seek to increase the fund’s protection limit for depositors with account balances over 10 million shillings in commercial banks that face closure for various reasons.
Patrick Onen Ezaga, the Director of Communication at DPF, confirms the ongoing reviews, which he says were prompted by demands from depositors with account balances beyond the current protected limit.
According to the Finance Institution Act, the DPF operates as a statutory organ under the Bank of Uganda, which acts as the government receiver or liquidator of financial institutions that collapse.
It operates as an insurance scheme that safeguards account holders from any financial losses in the event their banks close business. Meanwhile, Ezaga indicates there is a section of depositors that raised demands for the scheme to increase its current protection limit beyond the 10 million shillings, a threshold set five years ago.
He says that although the current limit could still cover the majority of the depositors in the banking sector, their decision-making organ found it necessary to also listen to the group of clients that raised concerns.
Ezaga says their teams have conducted research about the proposals, and he is optimistic that once the process is completed, it will partly help to dispel public misinformation and misconceptions about the fund’s operational mandate.
He adds that they are also considering increasing their levels of stakeholder engagement to create a proper public understanding of the roles and responsibilities.
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As a young entrepreneur and student at Kyambogo University, I fully support the Deposit Protection Fund’s (DPF) ongoing review of the protection limit for depositors. In today’s dynamic financial environment, where more Ugandans are saving, investing, and transacting in larger volumes, the current 10 million shilling cap is increasingly outdated and insufficient.
For us money makers—especially those in business and tech who handle significant amounts through commercial banks—this review is a welcome move. It signals that Uganda is beginning to recognize the evolving needs of modern depositors, many of whom are growing beyond the average saver profile. Enhancing the protection limit not only boosts public confidence in the banking sector but also encourages more people, especially youth and informal sector players, to engage with formal financial institutions.
The DPF’s consideration of increased stakeholder engagement is also critical. There is still a huge gap in public awareness about what the fund does and who benefits. Most young entrepreneurs and students, for example, don’t even know their deposits are insured, let alone the existing limit.
In short, increasing the protection limit is not just about safeguarding money—it’s about future-proofing Uganda’s financial system, supporting investment, and empowering a generation of financially active citizens.
regards,
Nyombi Obadiah.