KCB Bank Uganda is grappling with the aftermath of a major glitch in its agent banking system that, according to credible reports, resulted in agents across the country receiving more cash than they had requested. The incident, which occurred between midday and midnight on Tuesday, is feared to have cost the bank billions of shillings, with many agents said to have fled after benefiting from the erroneous payouts.
The Incident
Sources familiar with the matter told CEO East Africa Magazine that the anomaly affected KCB’s countrywide agent banking network, creating a situation where withdrawals and transfers were dispensing higher amounts than inputted. The bank has reportedly alerted law enforcement authorities, with several agents believed to be under investigation or on the run.
The magnitude of the financial exposure remains unclear, but industry observers suggest that the loss could run into billions of shillings, given the widespread nature of the glitch.
The issue, we understand, has since been fixed, services restored to normal, and the bank has since started a process to recover the lost money, since there are digital trails to the erroneous transactions.
The Bank Responds
When contacted for comment, Sarah Apio, KCB Bank Uganda’s Brand & Communications Manager, acknowledged the incident but did not provide specifics on the root cause or the size of the losses. In a written response, she stated:
“KCB Bank Uganda is aware of the incident you referenced and reassures all stakeholders that our core banking systems and customer funds remain safe and secure.
Most importantly:
• Customer funds and accounts are fully protected.
• Services across our banking channels continue as normal.
We remain committed to transparent communication and will provide further updates as appropriate.”
Her response underscored the bank’s priority of protecting customer confidence, emphasizing that client accounts were not compromised and that normal service delivery continues. However, she stopped short of disclosing the financial toll or confirming whether the glitch stemmed from a technical malfunction, a cyber compromise, or insider manipulation.
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The lack of clarity around the cause of the system breakdown and the exact financial loss has left many questions hanging. Analysts note that agent banking—an increasingly important channel for financial inclusion in Uganda—relies heavily on trust and robust systems. A breach of this nature, even if temporary, could dent public confidence in both the bank and the wider sector.
What remains unknown is whether the excess funds disbursed can be recovered, what corrective measures the bank is putting in place, and how regulators like the Bank of Uganda are being engaged.
Broader Implications
The glitch comes at a time when Uganda’s banking sector has been leaning aggressively on digital and agency banking to extend reach and reduce operational costs. With cash volumes transacted through agent networks rising sharply, any vulnerabilities can have significant financial and reputational consequences.
KCB Bank Uganda, part of the regional KCB Group, has been steadily expanding its footprint in the country. Its reputation for resilience and innovation will now be tested by how quickly and transparently it resolves this incident, reassures the market, and plugs any systemic gaps.
For now, the bank insists that customer deposits remain secure and that its systems are stable. As Apio reiterated:
“Customer funds and accounts are fully protected… services across our banking channels continue as normal.”
Stakeholders, however, will be watching closely for more detailed disclosures in the coming days.
This is a developing story. CEO East Africa Magazine will provide more details as they become available.
