Uganda’s agent banking industry has entered a new phase with latest data from Bank of Uganda painting a picture of a sector in full bloom.
As of June 2025, the shared agent banking platform, which allows banks to offer interoperable services through a common infrastructure, had expanded to 24 institutions, including 23 commercial banks and one microfinance deposit-taking institution.
The numbers tell an extraordinary story. Agent banking transactions soared by 76.1% during the year, rising from UGX 16.7 trillion in 2024 to UGX 29.4 trillion in 2025.
Transaction volumes also rose sharply by 50.5%, from 8.3 million to 12.5 million.
To match this demand, banks widened their physical networks dramatically. The total number of agents under the shared system rose 49.1%, from 15,288 in June 2024 to 22,793 a year later.
Bank of Uganda notes that much of this expansion came from the determined efforts of Centenary, KCB, and PostBank, which together accounted for a significant share of new recruits.
Through its CenteAgent network, Centenary has built one of the most extensive financial service footprints in Uganda, reaching deep into rural and semi-urban communities where branches are sparse.
Yet even in this growth story, a cautionary note emerged: the active agent ratio fell from 58% to 48%, reflecting the inevitable lag between rapid recruitment and actual business activity as new agents take time to build clientele and liquidity.
Banking beyond walls
Agent banking has become the cornerstone of Uganda’s financial inclusion strategy replacing queues in city branches with mobile outlets scattered across villages, markets, and transport hubs.
It’s a model built on human proximity and technological integration, where a shopkeeper in Gulu or a boda stage attendant in Mityana can now access financial services once restricted to bank counters.
The surge in transactions and values reveals the power of this hybrid model. It signals that customers increasingly trust agents with their money, relying on them not just for small withdrawals but for larger, more meaningful transfers, salary payments, supplier settlements, and bill payments.
How Stanbic Bank CFO Ronald Makata Blends Governance, Technology and Human Leadership to Drive PerformanceWhile Centenary leads in scale, KCB Bank is redefining agent banking through innovation.
Armed with fewer branches but strong digital DNA, the bank has pursued an aggressive strategy to expand its agent footprint using technology as leverage.
Its KCB Agent App has become a vital tool for growth, allowing agents to perform real-time transactions securely and efficiently.
However, KCB’s journey has also highlighted the risks that accompany fast digital growth.
Recently, CEO East Africa Magazine reported how the bank’s agent banking platform faced a technical glitch that led to unauthorized overpayments at some outlets.
Although the issue was quickly contained, it served as a reminder that the road to innovation is rarely smooth.
Once known for its conservative, slow-moving style, PostBank has reinvented itself as a modern, agile player.
Its transition to a Tier 1 commercial bank opened a new chapter with agent banking being central to this rebirth.
PostBank has leveraged its historic postal network and deep rural roots to build a powerful agent ecosystem, connecting underserved populations to the formal financial system.
Its agents numbered at close to 6,000 as of June 2025, handle government-linked payments, including pension disbursements and transfers under the Parish Development Model (PDM).
