Uganda’s agent banking transactions surge to Shs41 trillion

KAMPALA. The value of transactions conducted through agent banking networks rose by 65.2 per cent to Shs41.3 trillion in the year to March 2026, pointing to growing reliance on agency banking for everyday financial services.

The latest figures contained in the Ministry of Finance, Planning and Economic Development’s Microeconomic Indicators and Developments (MIND) July 2026 update show that the value of agent banking transactions increased from Shs25 trillion in March 2025 to Shs41.3 trillion in March this year.

The volume of transactions also increased by 37 per cent, from 10.9 million to 15 million during the same period.

The ministry attributed the increase in transaction volumes mainly to higher activity in float purchases and cash deposits, reflecting continued use of agent banking outlets for cash-in and cash-out services.

The growth comes as Uganda continues to expand financial access through agent banking, which allows customers to access basic banking services closer to their homes and businesses without visiting conventional bank branches.

The data also points to increased business activity, with 2,092 businesses registered in July, a 25 per cent increase compared with the previous month.

At the Uganda Securities Exchange, the All Share Index rose by four per cent to 2,141.28 in July, signalling improved performance across listed counters.

Gross fixed capital formation, a measure of investment in fixed assets such as buildings, machinery and infrastructure, also increased by 1.4 per cent to Shs14.459 trillion in the financial year 2025/26.

Meanwhile, residential property prices continued to edge upwards. The Residential Property Price Index rose to 119.64, representing a 1.2 per cent increase in the fourth quarter of the 2025/26 financial year.

The cost of electricity for extra-large industries, however, increased by two per cent in July to Shs207.7 per kilowatt-hour.

The higher tariff comes at a time when manufacturers and other large energy users continue to face pressure to keep production costs competitive.

On the consumer side, food price pressures eased slightly during the month. Monthly inflation for food and non-alcoholic beverages fell by 0.5 per cent in July, compared with no change in June.

The decline was largely driven by monthly food inflation, which fell by 0.5 per cent in July, compared with a 0.2 per cent decline in June.

However, the improvement in food prices was accompanied by worsening air quality in Kampala.

Particulate matter pollution increased by 42 per cent, from 37.7 micrograms per cubic metre in June to 53.4 micrograms per cubic metre in July.

The ministry attributed the deterioration to dry and dusty weather conditions during the month.

The July indicators also show an improvement in malaria-related mortality, which declined by 43 per cent, from 2.3 deaths per 1,000 people in June to 1.3 deaths per 1,000 people in July.

The labour market was affected by restrictions on travel to some Middle Eastern countries following the Ebola outbreak in Uganda.

No migrant workers were officially registered in July after Saudi Arabia, the United Arab Emirates, Qatar and Kuwait imposed travel restrictions in response to the outbreak.

Uganda has since been declared Ebola-free, easing concerns that had disrupted movement of migrant workers.

On the global commodities front, the International Monetary Fund’s Commodity Price Index declined by 11 per cent, from 216.61 in June to 193.20 in July.

The decline was partly driven by a four per cent fall in prices of precious metals, including gold, silver, palladium and platinum.

For Uganda, movements in international commodity prices remain important because the country’s export earnings and import costs are exposed to global price changes.

Taken together, the July indicators paint a mixed picture of the economy, with stronger financial transactions, business registrations and investment activity occurring alongside higher industrial power costs, worsening urban air pollution and weaker international commodity prices.