From market traders and Mama Mbogas to digital influencers and small contractors, Kayongo shares how the product is more than just a loan—it’s an invitation to a bigger relationship. He explains how dfcu is using data and intentionality to walk with entrepreneurs on their growth journey, from hustle to stability and scale.
He also tackles common banking misconceptions, shares insights into how SMEs can build better financial profiles and issues a powerful call: don’t run from your bank—partner with it. This is a conversation about real impact, inclusive access, and financial solutions that meet entrepreneurs where they are.
To begin with, as Head of Enterprise Banking at dfcu Bank, what exactly does your role cover, and how does it connect with the bank’s wider corporate strategy, especially around transforming lives and businesses?
As the Head of Enterprise Banking at dfcu, I take the lead in focusing on the Micro, Small, and Medium-sized Enterprises — that’s the portfolio I’m responsible for. Our main focus as a bank is: how do we support SMEs? Of course, without forgetting our core role, which is to serve our customers, drive the right solutions into the market, and uphold our core values. That means extending finance, offering advisory services, and ensuring that the entire ecosystem around the SME is enabled.
This role is very central to dfcu because, when you look at our strategy, it’s all about Transforming Lives and Businesses in Uganda. And when you empower an SME, you’re touching the real economy — because that’s where most Ugandans actually operate. That’s why enterprise banking is such a critical and strategic segment for us at dfcu Bank.
And you, as a person — but also in the context of your role as a banker and within the bank — what excites you most about leading this portfolio, especially at a time when SMEs are both vulnerable and full of untapped potential?
Yes, SMEs are indeed vulnerable, as you’ve rightly said — but they’re also full of untapped potential. What excites me most is the opportunity to provide solutions that support and ignite businesses. From nurturing a business at its early stages to watching it grow through the different phases — that’s what truly excites me. It’s fulfilling to know that I’m adding value to someone’s vision.
And beyond that, when these businesses grow, they begin to make an impact within their communities — creating jobs, improving livelihoods — and that ties directly into our purpose as dfcu: transforming lives and businesses.
It’s also a unique segment that gives me the chance to engage with different business models and dynamics. So in many ways, while I’m serving our clients, I’m also learning from them. And every time I see real impact happening in a business we’ve supported, that’s what keeps me going.
You sit in a unique place, where how you do your job, and how well you do it, can determine whether your clients successfully transition from SME to the next level of growth, and maybe even become part of corporate Uganda ten years down the road. That journey, of course, requires balancing risk while still being responsive to the real and urgent needs of these businesses. So, how do you — and how does the bank — manage this delicate balance?
Of course, yes — balancing the act between managing risk and supporting businesses can be tricky, but also quite interesting. As a bank, we align our products in a way that’s flexible, especially in how we manage risk. For every product we bring to market, we assess the risks involved and put in place the right mitigants. Most of our solutions are tailored around the cash flows of the SMEs.
Once we build a certain level of confidence — based on the risk management matrices we’ve developed — we’re able to take on that risk. Because, as the saying goes, if you don’t take the risk, someone else will — and they’ll also take the reward that comes with it.
We have rigorous policies embedded within our credit structures, both at the retail and enterprise banking levels. Enterprise banking, in particular, is very dear to us, and every time we design a product or solution, the risk component is a key part of that process. At the end of the day, while we are serving a business, we also have to be very mindful of the risk we are taking on — and that’s why we’re very deliberate in identifying those risks and mitigating them accordingly.
Being in the business, you interact with clients all the time — you hear their stories firsthand. We often talk about “transforming lives,” but for someone out there who might not fully grasp what that means, can you paint a picture of what transformation really looks like on the ground? Based on some of the testimonies you’ve received, what are some examples of businesses that have truly been transformed?
That’s a very dear question for me. When we talk about transforming lives, I think about Uganda as a whole — it’s a growing economy, and our population is also growing. Now, when you look at SMEs, I can confidently say that every day, there is a Ugandan starting a business. And that business is not only impactful to the vision bearer, but also creates employment opportunities, meaning other people benefit from it too. Naturally, the livelihood of that individual and the people around them improves.
At dfcu, we have chosen to play in eight sectors, but where we’ve seen a very strong impact, I would mention trade and finance, agriculture, infrastructure, and education. Let me stick with education for now. When you support someone who has set up a school, and you begin to see that school improve in terms of infrastructure, you also begin to see the ripple effect. The school starts to have an impact on the teachers. The education system begins to grow in that area. And if you’ve helped that school construct a classroom, then the students who come in are now learning in a better environment. In a way, you are shaping the future of that individual student.
When you look at agriculture, you quickly realise how important sustainability is, especially around food. All of us need good food and reliable food sources. And Uganda is one of those countries that is very good at agriculture. So, when I support a farmer, I’m not just helping that farmer — I’m supporting food sustainability. That means I’m supporting a sector where, at the end of the day, every Ugandan benefits. And once people are assured of food, then definitely, we are transforming lives and livelihoods in a real, tangible way.
And I know that as a bank, you’ve been actively driving the digital agenda. What are the different digital offerings or options available specifically for this segment of the market? And along with that, what’s the message to your SME clients? Why should they embrace digitisation?
When you look at the current global trends around digital platforms and technology, it’s clear that every business — everywhere in the world — is moving toward digital solutions. As a bank, we’ve also shown a strong interest in that space, because digital innovation improves the service experience and brings convenience to how customers interact with us.
We’ve made heavy investments in this area, starting right from the onboarding process. Gone are the days when you had to travel miles just to access your bank. Today, we can come to you — whether you’re at home or at your business — and onboard you from there.
We’ve also rolled out tools like the Quick Banking App and our recently launched USSD code, *240#, which allows you to access banking services from wherever you are. These tools are designed to make sure that the customer doesn’t have to be inconvenienced — they can continue running their business in the comfort of their location while still being able to access the bank.
So, in many ways, digitisation improves our proximity to the customer — but more importantly, it empowers them to run their business with greater ease and efficiency.
Uganda is still very much a cash-heavy economy. Let’s say someone runs a shop and closes business after regular banking hours — they still have cash on them. Do you have solutions, like agency networks or other tools, that help such clients manage both their digital and cash needs seamlessly?
Definitely, we do. We currently have close to 3,000 agents across the country, along with over 54 branches nationwide. And while some of our branches close earlier in the day, we also have select branches that operate past 5 pm to serve our customers better.
In addition to that, we’ve recently deployed Cash Deposit Machines (CDMs) — these are strategically placed in high-traffic business areas where we see a lot of commercial activity. What this means is that even after normal banking hours, our customers can still deposit their cash safely.
So, for a business owner who closes late, they can finish their day and deposit funds directly into a CDM, knowing that by the next morning, those funds are already available and accessible through our various digital platforms.
This is how we’ve built an end-to-end ecosystem that integrates both cash and digital channels, giving our customers the flexibility and convenience to bank on their terms, whenever and wherever they are.
Let’s talk about the dfcu Mobi Loan — what exactly is it, what is it designed to do, and what are some of its key features that set it apart?
The dfcu Mobi Loan is a very unique and dear product to us at dfcu, and it comes at a time when there’s a real need for financial inclusion. It’s an unsecured credit facility that we extend to our customers, allowing them to access up to UGX 5 million.
What makes it unique is that many of the solutions on the market today are limited by the amount of credit one can access. But when you look at the average SME — especially micro, small, and medium-sized businesses — most of them have working capital needs of around UGX 2 to 5 million. For example, someone may land a contract worth UGX 5 million, and they only need UGX 2 or 3 million to deliver on it.
Typically, when someone needs money urgently, they’ll call their five closest friends or family members, who, more often than not, might also be financially constrained at that moment. That’s where dfcu steps in. When you bank with us, you don’t need to hustle. We go the whole way and make access to financing easy for you.
One of the key features is repayment flexibility — customers have up to 30 days to repay, which is critical for SMEs as they manage cash conversion cycles. This allows them to plan their repayments and reinvest income more effectively.
Another unique feature is the multiple drawdown option. With most digital loans on the market, once you draw your full limit, you can’t borrow again until it’s fully repaid. But with dfcu’s SME Mobi Loan, you can draw down multiple times from your available limit, giving you more control and flexibility based on your needs.
We also recognise that while smartphones are common, many entrepreneurs — especially those in rural areas — face challenges with internet access or the cost of data. That’s why we introduced a USSD code: *240#. It works without internet, requires no airtime, and allows users to access funds instantly.
And it’s not just about loans. Through *240#, customers can also make utility payments, buy airtime, and even pay school fees — all from the same menu.
So when we say the SME Mobi Loan is dear to us, it’s because it’s designed to meet our customers where they are — combining access, flexibility, convenience, and inclusion in one simple, digital tool.
And since you mentioned that the SME Mobi Loan is unsecured, is there any sort of pre-approval process a client needs to go through? Or is it as simple as just dialing *240# and accessing the loan instantly?
Definitely, when you raise the issue of risk — especially given that this is an unsecured facility — it’s something we’ve taken into careful consideration within our credit policy. So yes, there is a pre-qualification process.
First, a customer must have banked with dfcu for at least six months. That period allows us to build up enough data to understand how much their business is generating, and that’s what we use to determine their loan limit. Not everyone will qualify for the full UGX 5 million; it depends on your turnover, which is essentially your daily banking into your dfcu account.
That’s why we continuously encourage customers to bank consistently — because the more you bank, the higher your limit is likely to be.
Another key factor is credit history. Through the national credit reference system, we can access information on any individual’s borrowing, as long as they have a National ID. We’re able to see how many existing loans you have and assess your ability to take on more credit.
At the end of the day, we want to provide responsible credit financing that supports your business without putting you under pressure. So yes, there are specific metrics we use, and if your banking behaviour and credit history are strong, you’ll qualify for a higher limit.
That’s also why we encourage customers to borrow and repay well — because with every successful repayment, you’re not only building a stronger relationship with the bank but also opening doors to increased limits and more opportunities for your business to grow.
So, let’s say I borrow UGX 4 million — how does repayment work in practice? Can I choose to pay it off early, maybe before the month ends, and then access another facility? Or how exactly are the deductions made?
The repayments are very flexible and really depend on how much money you have available to settle your debt. Let me paint a picture:
Say I borrow UGX 2 million using the Mobi Loan — the system has an early repayment option on the menu. If I choose to repay early, I not only clear the loan, but I also free up my credit limit, making it available for the next drawdown.
Now, if you’re not able to repay early, the system will automatically deduct the money on the 30th day. So it’s important to make sure you have enough funds in your account by then, because repayment will happen automatically.
What we encourage our customers to do is: once you’ve received money, settle the debt right away, so you’re ready for the next opportunity. We’ve seen cases where customers delay repayment even when they’ve received income. It’s better to clear the loan and be ready for the next deal, knowing your limit is restored.
And of course, you have options. The system gives you the choice to repay in full or partially, depending on how much you have at the moment. You’re not restricted to paying 100% in one go, so you have that leeway to manage your repayments based on your cash flow.
And does it matter how much money I already have in my account? For example, let’s say I have UGX 20 million, but I need to complete a UGX 24 million transaction — do I need to wait until my balance is at zero to borrow UGX 4 million, or can I still borrow on top and complete the transaction?
No, you can definitely borrow and top up, even if you already have money on your account. The way we’ve structured the Mobi Loan is almost like giving you an overdraft facility — it allows you to overdraw your account to meet immediate needs.
Breaking Barriers: Charles Mudiwa on Intergenerational Leadership at Makerere For example, if your approved limit is UGX 5 million, and today you need UGX 2 million, you can draw that amount and solve your need. If tomorrow you have another need, you can draw UGX 1 million, and that will also go into its own 30-day repayment cycle. The next day, if you still have UGX 2 million left in your limit, you can draw that as well.
So, it’s really a multiple drawdown model — based on your need and your available limit. Just keep in mind that each drawdown creates its own 30-day repayment window, so you’ll need to track each accordingly.
This structure gives you greater control over your cash flow, allows you to respond to business needs as they arise, and helps you stay on top of your repayments while continuing to grow your business.
How is the interest rate on the Mobi Loan structured, and for example, what’s the average rate a customer would typically pay over the 30-day period?
The way we’ve structured the Mobi Loan is that interest is charged upfront. This is because, like any business, we also need to cover our operational costs, and the interest helps us do that.
That said, we’re very intentional in how we design this facility. We’ve been running it for the past three months, and during that time, we’ve closely studied customer behaviour. What we’re encouraging is for customers to borrow responsibly, make multiple drawdowns, and most importantly, repay on time.
We don’t just look at the customer from a single transaction perspective. At dfcu, we consider the customer in their totality, which means we’re also thinking about how to reward loyalty and good credit behaviour. That’s something we’re planning for in the next phase of the product: to give back to customers who consistently use the service well.
That might be in the form of training through the dfcu Foundation, or even tailored products for businesses that show a strong ability to scale. We want to walk that journey with our customers, not just lend, but also add value as they grow.
In terms of pricing, the average interest rate is about 0.5% per day, which adds up over the 30-day cycle. When compared to the wider market, this rate is actually very competitive and affordable, especially for a business that’s intentional about using the funds productively.
Ultimately, while everyone wants a lower interest rate, the key is to ask: Can your business generate enough return to support the cost of borrowing? And for most SMEs, the answer is yes — if you’re focused, strategic, and using the loan for real growth.
I think you raised something important — the ability to study trends and customer response, and then use that insight to tailor solutions that truly empower clients. Borrowing from that, what are some of the key trends or data points you’re picking up so far? What is this data telling you about the real needs of your clients, for example, in terms of the average amounts being borrowed, or the types of transactions people are using the loan for? And what does that reveal about the broader business challenges they’re facing, of course, without giving away any proprietary information?
When you look at most Ugandans, you quickly realise that everyone has a hustle. And when we study how people purchase goods or respond to business needs, especially through their transactions, a few key patterns emerge.
In most cases, the money being borrowed is used to settle bills, cover operational costs, purchase inventory, or procure services. That kind of data helped us determine the maximum loan limits we could extend, because we wanted to design a product that directly reflects the actual needs on the ground.
And that’s exactly what we found. For this particular segment — especially businesses operating within the central business districts like Central Metro and Greater Kampala — the transaction patterns showed that the typical financing gap often lies in the range of UGX 1–2 million.
It could be a stock-out situation, a pending supplier payment, or an urgent purchase that needs to be made. And because we studied this behaviour closely, we were confident that the way we structured the Mobi Loan would resonate with the realities of our customers.
So yes, data has played a big role in shaping a solution that’s relevant, practical, and impactful.
Are you already seeing any impact stories emerging from customers using the Mobi Loan — businesses that have been able to solve real challenges or seize opportunities because of it? Or is it still too early to tell?
Of course, I wouldn’t say it’s too early to tell — we’ve already seen a clear impact over the past three months. Let me paint a picture, especially from our mainstream market clients in areas like Nabugabo, Owino, Nakasero, and Kalerwe.
Most of these are women — often referred to as the Mama Mbogas — who’ve historically struggled to access credit. For example, someone might be buying pineapples from Luwero, and a bumper harvest hits the market. They might start the day with UGX 500,000 in working capital but need an extra UGX 1 million to take advantage of the opportunity and stock up.
That’s where the dfcu SME Mobi Loan comes in. We’ve seen high uptake early in the morning in these markets, with traders accessing credit on the spot. In fact, when people in the market see others using the *240# code, they rush to register — often because someone they know has already had a positive experience.
Instead of rushing to a moneylender, they’re now able to serve themselves through dfcu’s platform — and that shift is already changing behaviour. We’re also seeing this with small suppliers or contract workers, who would previously look for someone to bail them out, but now simply default to *240#.
So yes, the impact is already visible — especially in market segments where access to quick, responsible credit can unlock real value. And in the next six months, we expect to have even more transformational stories to share.
You mentioned something earlier about women — do women-led businesses receive any special support under the Mobi Loan or dfcu’s broader SME strategy? Or is everyone currently being served on an equal footing?
When it comes to women, dfcu has long been known for our Women in Business (WiB) initiatives. In fact, Women in Business is one of our special-purpose vehicle segments, and it’s a space that’s very dear to us.
We have a fully-fledged Women in Business Centre, which is dedicated to supporting women entrepreneurs. This centre provides training and business advisory services to any woman who wants to grow or strengthen her business.
Beyond that, we’ve also designed tailored financial solutions for women, whether it’s working capital, business expansion, or asset acquisition. Women-led businesses also benefit from preferential interest rates, because we’ve observed — and data supports it — that when you lend to a woman, she often multiplies the value of what she receives.
We’ve also found that women-led businesses tend to be more trustworthy and are often deeply committed to the vision they’re pursuing.
You may have also seen our dfcu Rising Woman Initiative, which is currently running. Through this programme, we’ve selected women entrepreneurs from all six regions of Uganda, offering them business training and also top-up working capital to help grow their enterprises.
So yes — we are very intentional about supporting women in business, and this commitment runs through everything we do, including how we design and deliver products like the Mobi Loan.
Would you say the Mobi Loan is really an entry point to a longer-term relationship with dfcu? Is it designed to bring customers closer, where you borrow, repay, borrow again, build a repayment track record, and eventually grow your profile to qualify for larger facilities? In other words, is this the start of a potentially life-changing journey with the bank?
Definitely, and you’ve said it right—the SME Mobi Loan is really an inroad to the bigger picture. I also like how you put it—how are we utilising data? Because we are very intentional with every single person who takes up the SME Mobi. Like I said, for some businesses, UGX 5 million may actually be a small amount. But as you borrow and pay, borrow and pay, we are looking at that data. And once we see that consistency—if you’ve borrowed two or three times—you’re likely to receive a call from a dfcu staff member to have a more detailed discussion.
Because for us, it’s not just about you taking this loan. We are genuinely interested in how we can help improve your business. We want to understand your vision—where you’re going—and see how we can walk that journey with you and take your business to the next level. So yes, the *240# is just an entry point. It’s just an opener to the bigger relationship we envision with our customers.
Based on your experience in SME banking—and banking more broadly—what are some of the key insights you’ve picked up over time, especially regarding how startups and small businesses engage with banks? What are some of the common misconceptions—both the good and the bad—that you’ve seen among entrepreneurs when it comes to banking, credit, or even financial relationships? What do you think most people are not seeing or perhaps misunderstanding about how banks can support their business growth?
The biggest myth people often associate with SMEs is that they are too risky. But in reality, it’s not necessarily that they are risky—it’s that many of them are not well documented or may lack the right tools and structured approaches to doing business. However, when you sit down and take time to understand their vision and the path they want to take, you’ll realise that these entrepreneurs are loyal to their businesses and incredibly impactful within their communities.
So, the real conversation should be: how do we nurture these SMEs so they can achieve the full potential they’re striving for? Yes, many of them may not have formal structures in place, but when you observe closely, you’ll see that Ugandans are extremely entrepreneurial. It’s just that most haven’t yet been exposed to the structured way of running a business.
I strongly believe that as financial institutions—and especially when we collaborate with government and development partners—we can help SMEs realise their dreams. Of course, we don’t ignore the risk factor. It’s real. But once you identify someone with a genuine passion for their business and give them the right tools and support, trust me, the impact they can create is truly remarkable.
You know, banks can be quite intimidating, especially when someone owes money and hasn’t yet paid. For many SMEs, the default reaction is often to go silent or hide from the bank. But where I come from, there’s a saying: “If you have meat and you plan to eat it, you can’t hide it from the fire”—and it’s the same with a bank loan; hiding won’t solve the problem. So what message or practical tips would you give SMEs about how to engage with their bank—especially dfcu—when they find themselves going through difficult times or struggling to meet their loan obligations?
I really like that statement—never run away from your banker. Because at the end of the day, you are running a business. And in business, you’ve taken on a cash-related risk. No matter how well you plan, there will always be unforeseen eventualities that can impact your cash flow.
The key question becomes: how do I make my bank a strategic partner, especially when I’m facing difficulties? You should be able to run to your banker and find a solution together. Because yes, your business might be struggling today, but the real story is about how we help you get back up. That starts with being honest about what has gone wrong and working with the bank to structure something that helps your business recover and return to stability.
One thing I always tell entrepreneurs is—Don’t treat your bank like a fire extinguisher. Don’t wait until the fire is burning to come rushing in. If you’ve been distant from your banker, and then show up in a crisis, you may not get the support you could have gotten if you’d involved us earlier. This is a story we need to write together, in real time, as your business evolves.
Here at dfcu, we have a saying: “When the bush is on fire, even the chameleon changes the walking style of its ancestors.”You know how a chameleon walks—slow and careful. But when the bush is on fire, it speeds up. Why? Because if it doesn’t, it gets burnt. That’s the same urgency a business owner needs to have. You must understand the dynamics of your business and environment, and act quickly.
Let your banker be your partner. The moment you notice shifts in your business—whether good or bad—talk to us. Banks often have insights, projections, and information that can help you respond better. When you engage early, we can walk with you and grow with you.
So my advice is simple: don’t hide from your bank. Instead, bring your bank closer—let’s build a partnership that’s mutually beneficial. That’s what we believe here at dfcu.
What message would you give to a business owner who’s still hesitant to use the dfcu Mobi Loan? And related to that, many SMEs, especially those in the informal markets, tend to spend money at source. They get paid and spend immediately, without channelling that money through their bank accounts. But if they routed these transactions through the bank, it could help build their financial profile and creditworthiness. What practical tips would you share to help such entrepreneurs enhance their bankability, raise their credit profile, and ultimately increase access to finance?
Absolutely. And I think you’ve said it well. To any business person out there, it’s important to understand that the banking systems have evolved. Gone are the days when you’d walk into a bank with a land title and expect immediate financing. For many SMEs, the belief has been: “As long as I have good security, I’ll get the money.” But things have changed.
Today, what we want to understand is the rhythm of your money. I can confidently extend credit to someone who consistently banks with us because I can see their financial behaviour. Their bank transactions become the source of truth. So, my call to business owners is: let your money flow through the banking system.
At dfcu, we say—your bank statement is your profit and loss statement. It’s also your balance sheet. It tells us how your business is growing. Without that information, we can’t make timely, accurate credit decisions. Anyone can claim their business is doing well, but banking consistently is the clearest demonstration of your cash flow and business health.
And beyond the numbers, make your banker your partner, just like your lawyer, your doctor, your accountant, or your tax advisor. Let your banker be part of your story – and that’s exactly why dfcu is here. We want to be the partner that walks the journey with you.
Don’t just see your bank as someone you run to in a crisis. Look at us as a sounding board, someone to consult as you plan for the next 5 or 10 years of your business. That relationship will help you understand your own business journey, not just in terms of finance, but in identifying new markets, emerging risks, and even answering questions like: Is this the right time to borrow? Should I build savings first? When you’re intentional and informed, you’re better placed to take your business to the next level.
