Overview:
The proposal was presented on Thursday during a meeting between Finance Minister Henry Musasizi and the DPF board and management, where the institution reviewed its performance and outlined its strategic priorities.
The Deposit Protection Fund (DPF) has proposed increasing the deposit insurance limit from Shs10 million to Shs20 million per depositor per financial institution in a move aimed at strengthening public confidence in Uganda’s banking sector.
The proposal was presented on Thursday during a meeting between Finance Minister Henry Musasizi and the DPF board and management, where the institution reviewed its performance and outlined its strategic priorities.
DPF Chief Executive Officer Dr Julia Clare Olima Oyet said the current insurance limit of Shs10 million fully protects 98.53 per cent of all deposit accounts in Uganda.
She said the fund would soon engage the Ministry of Finance on the proposed increase in coverage to Shs20 million to enhance depositor confidence and further strengthen financial sector stability.
“DPF is a strategic institution designed to strengthen confidence in the financial sector, thus contributing to government’s tenfold growth agenda,” Dr Oyet said.
Board chairman Ben Patrick Kagoro said the fund has remained financially sound and aligned with government priorities since it became operational in 2017.
He said the value of the fund has grown fivefold over the past eight years, from Shs470 billion to about Shs2.3 trillion, placing it in a strong position to support financial sector stability.
Speaking at the meeting, Mr Musasizi pledged government’s support for the Deposit Protection Fund, saying a stable financial system is essential for attracting investment, creating jobs and sustaining long-term economic growth.
The Deposit Protection Fund was established to protect depositors by compensating them in the event a regulated financial institution fails, thereby promoting confidence in Uganda’s financial system.