Overview:

Salaried workers in Uganda can now access up to 500 million shillings in unsecured credit with KCB Bank. The move aims to tackle credit barriers and allow for better long-term financial planning without the need for collateral.

KCB Bank Uganda has increased the limit on its unsecured personal loans to 500 million shillings (£104,000), as it seeks to reposition borrowing as a long-term financial planning tool.

The bank has also extended its maximum repayment period to 10 years, one of the longest terms currently available in the Ugandan retail market.

By removing the need for collateral, such as land or property, the lender says it wants to make it easier for salaried employees to fund “intentional” investments like education, property or new business ventures.

Miranda Bageine Musoke, head of retail banking at KCB Bank Uganda, said the move was designed to help customers move away from “reactive” borrowing.

“When income is used strategically and supported by the right financial solutions, it becomes a tool for growth, stability and long-term security,” she said.

The bank has promised a 48-hour approval process for the new loans. Officials say the 120-month repayment window will allow borrowers to manage their monthly cash flow without compromising their daily financial stability.

The expansion comes as data from Statista suggests nearly 70% of Ugandans see limited access to credit as the main obstacle to reaching their financial goals.

KCB, which is regulated by the Bank of Uganda, operates 15 branches and a network of more than 500 agents across the country.