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Bank of Uganda to pay off EFC Uganda customers after its liquidation

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The Bank of Uganda has asked the microfinance institution’s former customers to submit their account details so as to be paid following the liquidation of EFC Uganda Limited.

On 19th January 2024, the Bank of Uganda (BoU) placed EFC Uganda Limited under liquidation, revoked its license, and ordered the winding up of its affairs.

As provided for under the Financial Institutions Act 2004 as amended, protected deposits of up to Shs10m per depositor shall be paid by the Deposit Protection Fund (DPF). BoU as the statutory liquidator of EFC Uganda Limited says it will pay the unprotected deposits.

Accordingly, the Central Bank on Monday, 05 February 2024 asked all depositors with deposit balances above Shs10m to submit their particulars to the Director Financial Stability, Bank of Uganda within seven days to facilitate payment of their deposits.

The particulars are a letter confirming the account name in EFC Uganda Limited, and the names and signatures of the signatories to the account(s), alternative bank account(s) registered in their name(s), and National Identification Card(s) of signatories.
Others are the mobile phone number(s) of the account holder(s), certificate of Incorporation and location (for companies), and Memorandum and Articles of Association (for Companies).

“Payment of unprotected deposits will be made with effect from February 19, 2024, after verification of the information submitted,” Kenneth Egesa, the BoU Director Communications, said.

Previously, commercial banks were required to maintain a minimum paid-up capital of Shs120bn and credit institutions were required to maintain a minimum paid-up capital of Shs20bn. These capital thresholds have been increased to Shs150bn for commercial banks and Shs25bn for credit institutions, to be implemented by June.

The minimum capital requirement for microfinance deposit-taking institutions was increased from Shs500mn to Shs10bn, although this was later reduced by parliament to Shs5bn.

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