The Independent Uganda: You get the Truth we Pay the Price
KAMPALA, UGANDA | THE INDEPENDENT | NCBA Bank Uganda’s customer base has surged to 14 million, largely driven by users of its mobile lending and saving platform, MoKash. According to management, MoKash was a key contributor to the bank’s strong financial performance in 2024, helping push revenues and profits up by 40 percent to 46 billion shillings before tax.
Operated by MTN Uganda, MoKash, a mobile phone-based platform, was established in 2016 by the Commercial Bank of Africa, which later merged with NIC Bank to become NCBA in 2020, and has since headlined micro lending in the country. Deposits on MoKash savings accounts are also protected by the Deposit Protection Bank since the product owner, NCBA, is regulated by the Bank of Uganda, giving extra security to the users’ funds.
Philippa Muzahura, Head of Digital Business, says the growth is largely due to the fast increase in penetration, which is a global phenomenon, but also the ease of getting microloans. “MoKash is a digital game-changer that allows Ugandans to save and borrow instantly via MTN, with no paperwork and loans starting at just 3,000 shillings. It continues to drive real financial inclusion,” she says.
The product has largely benefited personal income borrowers, but also the micro and small business operators. “The ability to get up to 1.5 Million Shillings instantly and with no requirement of security is what has made the MoKash a household name,” she said, adding that it gives traders the convenience of borrowing in the morning and paying back by close of business after selling.
Anyone who has the MTN mobile money account automatically qualifies to be a MoKash customer, while the loan limits depend on how much the account is used for mobile money transactions, borrowing and paying back, as well and saving. The MoKash savings account gives the savers a 5 percent interest per annum, depending on the level of savings.
The total savings on the MoKash accounts have grown to 35 Billion Shillings, while loans so far given out through the platform now total more than 2.8 trillion, according to Muzahura. “Can you imagine the opportunities that would have been lost if it were not for this product? People have been able to grow their businesses, meet emergencies, and more importantly, those without formal bank accounts,” she says, emphasising the importance of the product in driving financial inclusion.
Despite the loans having no security, the Non-Performing Assets ratio has remained below 3.8 percent, compared to the national average of 5.9 percent in December 2023, according to the Uganda Bankers’ Association. This means that for every 100 Shillings lent out, 5.9 is lost to payment defaulters. Most of the customers (58.8 percent) are male, but the bank says that the share of female customers is growing steadily, from less than 30 percent when the product was launched.
When it comes to borrowing, the share of males grows bigger, to 63 percent, while female borrowers are 37 percent, but more females (about 52 percent) are saving than men. The mainstream borrowers from NCBA Bank grew to 3 million. “Our strong 2024 performance, 40 percent growth in profit before tax and double-digit asset growth, reflects disciplined execution, smart risk management, and our commitment to delivering sustainable value,” said James Mulandi, Chief Finance Officer. CEO Mark Muyobo said, the Bank’s growth in the last five years of its existence shows the potential in the industry, not only in Uganda, but East Africa as a whole.
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