Bank of Uganda (BoU) has set new daily limits for cash withdrawals starting 1 January 2027. Individuals will be capped at Shs50 million per day and Shs250 million per week.
Businesses and corporate accounts can withdraw up to Shs500 million daily and Shs2.5 billion weekly. Anything above those amounts will need to go through digital channels.
The central bank sent a circular to CEOs of commercial banks, credit institutions, and microfinance deposit-taking institutions to prepare them.
Bank of Uganda’s director of communications Kenneth Egesa confirmed the memo was shared early so banks have time to adjust.
“The circular was distributed to the respective chief executive officer to start preparing for the changes ahead of the effective date of January 1, 2027,” he said.
BoU says the goal is simple: speed up Uganda’s shift to a digital economy. By limiting physical cash, more people and businesses are expected to use Real-Time Gross Settlement, internet banking, mobile money, and other electronic platforms. The central bank argues this will make transactions faster, more transparent, and safer.
Cheques are also being scaled down
Paper payments are next on BoU’s list. The maximum value for a shilling cheque has been halved from Shs10m to Shs5m. Dollar cheques drop from $2,750 to $1,375.
Euro cheques go from €2,250 to €1,125. Pound sterling cheques fall from £2,200 to £1,100. Kenya shilling cheques are cut from KSh300,000 to KSh150,000.
Digital payments are already taking over
The timing fits what’s happening on the ground. BoU data shows Ugandans are moving away from cash fast.
In 2025, electronic money transactions jumped 28% to Shs366 trillion. The number of transactions rose 17.3% to 9.1 billion.
Mobile money led the growth: transaction volumes were up 21.1% to 301.1 million, and value surged 40% to Shs66.1 trillion. Active mobile money users hit 36.3 million, with the agent network expanding 27.5% to over 1.16 million agents nationwide.