Finance Trust Bank becomes a Tier II Credit Institution: 10 things you must know On 29 January 2026, the Bank of Uganda announced that it had authorised Finance Trust Bank Limited to transition from a Tier I Commercial Bank License to a Tier II Credit Institution License, effective 01 April 2026. As expected, the announcement triggered a wave of stakeholder questions—ranging from concern and speculation to uncertainty about what the change means for customers, depositors, and business partners. In this article, CEO East Africa Magazine’s Executive Editor, Muhereza Kyamutetera, who has closely followed Finance Trust Bank’s evolution over the past decade, takes a deeper look at the facts behind the decision—separating perception from reality and grounding the discussion in verifiable data.

Muhereza KyamuteteraFebruary 5, 2026February 5, 2026

Under the leadership of Annet Nakawunde, Finance Trust Bank has continued to post growth in assets, customers, and outreach—demonstrating operational resilience and strategic focus even after transitioning to a lower banking licence.

To begin with, the licence downgrade was not the result of weak performance or regulatory distress. Rather, it stemmed from structural shifts in Uganda’s banking regulatory framework. In recent years, the Bank of Uganda significantly increased minimum capital requirements for Tier I commercial banks, lifting the threshold to UGX 150 billion. This policy move—designed to strengthen systemic resilience and reduce risk in the banking sector—forced several otherwise sound institutions to reassess their strategic positioning, capital efficiency, and long-term focus. Finance Trust Bank’s transition must therefore be understood within this broader regulatory and policy context, rather than as a reflection of…

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