Julius Kakeeto elected chairperson of Uganda Bankers Association

Mr Julius Kakeeto, the Chief Executive Officer of Post Bank Uganda, has been elected the new chairperson of the Uganda Bankers Association (UBA).

Mr Kakeeto takes over from Ms. Sarah Arapta who served for a two-year term of office (2021- 2023).

The new UBA leaders were elected at their Annual General Meeting, which took place in Kampala on Friday.

Mr. Kakeeto, who previously served as the UBA Vice Chairperson for two years (2021 – 2023), is joined by other members elected on the executive committee.

They include; Mr. Michael Mugabi, CEO of Housing Finance, as Vice Chair; Mr. Edgar Byamah, CEO of KCB Bank as Treasurer and Mr. Mumba Kalifungwa, CEO Absa Uganda as Auditor.

Other committee members are Mr. Sanjay Rughani, CEO of Standard Chartered Bank, Ms. Patricia Ojangole, CEO of Uganda Development Bank, and Shafi Nambobi, the CEO, of UGAFODE. The Executive Director of UBA, Mr. Wilbrod Owor, serves as secretary to the Executive Committee.

Speaking at the meeting, Ms Arapta, the outgoing UBA Chair and CEO Citi Bank Uganda, noted that in terms of spending for 2023, the banking industry’s total direct taxes that was paid by members was UGX 1.29 trillion, up from 1.08 trillion in 2022 with spending on ICT increasing to Ugx 694 billion in 2023 up from ugx 392 billion.

The contribution to NSSF increased to Ugx 157.3 billion up from 131 billion in 2022 with a total staff number of 19,428 (53% female and 47% male). She further noted that the best gift the industry had given its customers in October 2023, was to drop the practice of early loan repayment fees charged on outstanding loans, which was agreed to by the entire membership under UBA.

This decision to halt the early repayment fees was aimed at facilitating the loan market with flexible options and alternatives in constraining economic circumstances and by extension the growth of private sector credit.

In her last message as chairperson of UBA, Ms Arapta highlighted that in the strategy session with UBA Member CEOs held on 19th January 2024, the meeting discussed key and emerging issues, trends and drivers for the strategy period of 2025-2027 including real and potential challenges ahead.

She highlighted fraud, tax administration and dispute management issues as some of the key challenges the industry was facing and called upon the new leadership to continue with engagements on these fronts.

Ms. Sarah, further called upon the new leadership and members of UBA, to continue to nurture the industry gender initiatives of the UBA Women Economic Empowerment Programme, focusing on both female staff and entrepreneurs.

The new leadership assumes responsibility at a time when the industry has registered growth in total assets of banking industry by 8% from UGX 45.8 trillion in 2022 to UGX 49.5 trillion in 2023, customer deposits increased from UGX 31.5 trillion in 2022 to UGX 33.96 trillion in 2023 representing a growth of 7.8%, industry access channels, especially agent banking points across the country increased to 33,437 bank agents by close of 2023, the industry further operated 984 ATMs and 856 branches.

Industry gross loans also increased by 7.6 % from UGX 19.6 trillion in 2022 to UGX 21.1 trillion in 2023 with the top five sectors’ credit portfolio by member financial institutions making up 89.1% of the total industry loan book. These sectors included household and personal loans (UGX 4.85 trillion), real estate (UGX 4.31 trillion), trade (UGX 3.72 trillion), manufacturing (UGX 2.89 trillion) and agriculture (UGX 2.53 trillion).