Lloyds Forex Bureau, one of Kampala’s longest-standing foreign exchange and remittance operators, has formally exited the market after voluntarily ceasing operations, the Bank of Uganda (BoU) has announced.
In a notice issued on November 13, 2025, the central bank confirmed that Lloyds had stopped offering money remittance services on September 29, 2024, and had also ceased operating as a foreign exchange bureau, marking its complete withdrawal from the sector.
The business, established in 1997 and headquartered on Entebbe Road, had become a familiar service point for corporate and individual clients over the past three decades.
Bank of Uganda noted that customers with outstanding claims, particularly those involving funds meant for remittance, to submit supporting documentation to the Director, Non-Bank Financial Institutions Department by December 5, 2025.
A pattern of closures, non-renewals, and voluntary exits
Lloyds’ exit is part of a broader pattern that has been reshaping Uganda’s forex bureau industry over recent years.
Several bureaus have left the market under varying circumstances, signalling both regulatory tightening and shifting economic dynamics.
Some institutions have exited after failing to secure renewed licences, a process that reflects increasing regulatory scrutiny.
A key recent example came in early this year, when Bank of Uganda declined to renew the licence of Empire Forex Bureau, effectively removing it from operation.
Non-renewal typically results from concerns about compliance, documentation, governance standards, or capital adequacy.
It represents one of the mechanisms through which the central bank enforces discipline in the sector.
Tight Rules, Big Money: Energy Ministry Restricts Gold Trade to Licensed Operators as Central Bank Enters a UGX 20 Trillion Market Other closures have resulted from direct enforcement. The central bank has, in the past, shut down bureaus linked to high-profile business groups following investigations into operational or compliance breaches.
The industry has also seen multiple voluntary withdrawals, where operators choose to discontinue business, often citing financial pressures or changing market conditions.
Some firms, such as Kase Forex Bureau, publicly declared voluntary cessation of remittance operations while maintaining the forex business.
Historical revocations add further context to the shifting landscape, include Arua Forex Bureau, which had its licence revoked by the Bank of Uganda in 2019.
Beyond regulatory actions, economic pressures have had a profound impact.
The forex bureau sub-sector experienced a dramatic drop in income following the Covid-19 disruption.
In 2021, the Bank of Uganda annual report noted that annual sector earnings plunged from UGX 12.3 billion to UGX 3.8 billion, a fall that sharply reduced profitability across the industry.
This downturn was driven by reduced travel, lower foreign currency inflows, and depressed remittance activity during and after the pandemic.
As revenues shrank, over 10 forex bureaus and three money remitters were forced to permanently exit the sector after struggling to meet rising compliance costs, rent obligations, and capital requirements, prompting some to shut down voluntarily or downsize operations.
