Housing Finance Bank’s Michael Mugabi elected Uganda Bankers’ Association chair

KAMPALA — The Chief Executive Officer of Housing Finance Bank, Mr Michael Mugabi, has been elected the new chairperson of the Uganda Bankers’ Association (UBA), taking over leadership of the umbrella body at a time when the banking sector is reporting strong growth and improving profitability.

Mr Mugabi was elected during the association’s Annual General Meeting held at Serena Hotel Kampala on May 15. He replaces Mr Julius Kakeeto, whose two-year tenure as chairperson ended this year.

Other members elected to the new executive committee include Ecobank Uganda Managing Director Ms Grace Muliisa as vice chairperson, Standard Chartered Bank Uganda CEO Mr Sanjay Rughani as honorary treasurer, and I&M Bank CEO Mr Robin Bairstow as honorary auditor.

The committee also includes Mr David Wandera, CEO of Absa Bank Uganda, representing Tier One financial institutions; Mr Moyo Nkisolathi, CEO of Brac Uganda Bank, representing Tier Two and Three institutions; and Mr Francis Ogwang, country manager of the East African Development Bank, representing development finance institutions.

Mr Mugabi assumes office as Uganda’s banking industry continues to register steady growth despite global economic uncertainty, inflationary pressures, and fiscal challenges.

Presenting the sector’s 2025 performance report during the AGM, outgoing chairperson Mr Kakeeto said the industry recorded significant improvements across key financial indicators.

According to the report, total banking sector assets grew by 16 per cent from Shs53.3 trillion in December 2024 to Shs61.7 trillion by the end of 2025.

Customer deposits also rose by 17 per cent, increasing from Shs35.5 trillion to Shs41.7 trillion over the same period.

The report further showed improved asset quality, with non-performing loans dropping from 4.8 per cent in 2024 to 3.4 per cent in 2025.

Profitability also strengthened, with total comprehensive income reaching Shs2.17 trillion by the end of the year, while the industry’s cost-to-income ratio improved to 67 per cent.

Mr Kakeeto said the banking sector remained critical to Uganda’s economic growth through financing businesses, supporting investment, and promoting financial inclusion.

“The banking sector continues to serve as a vital engine for Uganda’s economy, providing essential interventions to support sustainable growth and national development,” he said.

During his tenure, Mr Kakeeto said the association focused on strengthening the industry’s role in supporting government’s long-term economic transformation agenda, particularly through financing agro-industrialisation, tourism, mineral development, and science and technology innovation.

The association also advanced implementation of its Environmental, Social and Governance (ESG) roadmap aimed at improving sustainability reporting and strengthening climate-related financial disclosures within the banking industry.

UBA additionally expanded stakeholder engagement initiatives, including anti-fraud campaigns, alternative dispute resolution mechanisms, and programmes promoting women’s economic empowerment.

However, Mr Kakeeto acknowledged that the industry continued to face challenges, especially in relation to taxation and fiscal policy.

He said the association had maintained engagements with the Uganda Revenue Authority and other government agencies on tax-related matters affecting the financial sector.

Looking ahead, bankers expressed optimism about the country’s economic prospects, citing anticipated oil revenues, stable inflation, and continued growth in private sector activity.

However, they warned that risks such as geopolitical instability, rising public debt, and fiscal pressures could still affect economic performance.

Mr Kakeeto urged the new leadership to continue advocating regulatory reforms and policies that support investment and innovation within the banking sector.

The Uganda Bankers’ Association brings together commercial banks and other supervised financial institutions operating in Uganda.