In August 2016, MTN Uganda, together with Commercial Bank of Africa (CBA Bank), launched MoKash, a digital service that allows mobile money subscribers to access microloans and also save money using their mobile phone. This development was met with great applause and optimism from various financial experts and customers alike. It was hailed as a moment that ensures financial inclusion for people excluded from the formal banking system.
However, that wasn’t the case with several politicians and the technological breakthrough has instead attracted queries from Parliament.
Stephen Chikovore, Old Mutual General Insurance’s CEO in Uganda to Step Down in January 2026Legislators are concerned that the platform is operating in an opaque legal regime. One such MP is Kenneth Lubogo, of Bulamogi County, who raised concerns about MoKash on August 10. The MP challenged the government to explain under which legal framework MTN Uganda, telecom by registration, was joining the savings and borrowing financial sector.
Ugandans are accustomed to receiving loans from banks, micro-finance institutes, SACCOs, and money lenders or Bank Lambert (loan sharks); so MTN MoKash’s entry into the market raised more questions than answers among politicians.
While submitting on the matter, Lubogo argued: “MTN has got about nine million subscribers and they are lending at 9% per month. If four million subscribers borrowed Shs10,000 each in a month, MTN would make Shs3.6 million in profit. I would like the Ministry of Finance and Ministry of ICT to explain if MTN has become a financial institution.
