MTN mobile money loans hit UGX 2.5 trillion as borrower base doubles

KAMPALA, Uganda — MTN Mobile Money loans reached Shs 2.5 trillion in 2025, driven by a surge in digital credit adoption and a significant expansion of the company’s borrower base.

The value of loans disbursed through the platform grew nearly 80% from Shs 1.4 trillion in 2024. This growth was accompanied by a 128% increase in unique borrowers, which rose from 3.5 million to more than 8 million during the same period.

Richard Yego, managing director of MTN Mobile Money Uganda Ltd., attributed the performance to the MoMo Advance overdraft product, launched in late 2024. The service allows customers to complete transactions, such as bill payments and airtime purchases, even with insufficient wallet balances.

“Lending has been a major driver of transaction volume and customer empowerment throughout last year and it will continue to be the case this year,” Yego said.

The company’s lending portfolio now includes several microloan products developed through partnerships with financial institutions. While 95% of loan transactions are currently processed via USSD codes, MTN is seeing a shift toward its mobile application as users seek more integrated financial services.

To support further expansion, MTN plans to upgrade its merchant and agent platforms in early 2026. The new enterprise system will enable businesses to process more complex transactions, including salary payments, tax settlements, and supplier transfers.

The rise in mobile lending comes as the company continues its structural separation from the core telecommunications business to focus on its fintech ecosystem. MTN currently maintains an active network of nearly 250,000 agents and 100,000 merchants across Uganda.