The Deposit Protection Fund (DPF) has grown its asset base to about Shs2.3 trillion, a significant rise from approximately Shs470 billion when it became an independent institution in 2017, underscoring the increasing strength of Uganda’s financial safety net.
The Fund, which protects depositors in financial institutions licensed by the Bank of Uganda, currently guarantees deposits of up to Shs10 million per depositor per institution, a level that covers about 98.5 percent of all deposit accounts in the country.
Speaking during a review of the Fund’s performance, DPF Chief Executive Officer Dr Julia Clare Olima Oyet said the institution has continued to strengthen confidence in Uganda’s financial system while supporting the country’s economic transformation agenda.
She noted that the Fund is now halfway through its 2022–2027 Strategic Plan and has maintained steady growth through prudent investment and sound financial management.
According to the Fund’s latest financial results, total assets increased by 17 percent, rising from Shs1.62 trillion at the end of June 2024 to Shs1.89 trillion by June 2025. Investments in government treasury instruments also grew from Shs1.60 trillion to Shs1.87 trillion, while total reserves rose from Shs1.56 trillion to Shs1.83 trillion over the same period.
Comprehensive income also improved, increasing from Shs213 billion to Shs267 billion, reflecting stronger investment returns and continued operational efficiency.
Dr Olima Oyet said the Fund will prioritise technology investments during the new financial year to modernise its operations and improve service delivery. She also revealed that discussions with the Ministry of Finance, Planning and Economic Development are expected to begin on a proposal to increase the deposit insurance limit from Shs10 million to Shs20 million.
Finance Minister Henry Musasizi, who met the DPF Board and management to review the institution’s performance, reaffirmed government’s commitment to maintaining a stable and resilient financial sector.
He said a stronger deposit protection framework would enhance public confidence in banks, encourage savings and investment, and contribute to sustainable economic growth and job creation.
DPF Board Chairperson Ben Patrick Kagoro said the institution has remained financially sound and aligned with national development priorities, noting that its assets have increased nearly five-fold since it became operational as an independent legal entity.
Established under the Financial Institutions Act, the Deposit Protection Fund operates as a government agency that insures deposits held in licensed banks and other supervised financial institutions. Member institutions contribute to the Fund based on their deposit base and risk profile, enabling it to compensate customers if a participating institution fails.
Uganda’s banking sector currently holds more than Shs41.6 trillion in customer deposits spread across over 17 million accounts, providing a strong funding base for the country’s financial system.
The DPF has previously supported payouts to protected depositors following the closure of institutions such as EFC Uganda Limited and Mercantile Credit Bank Limited. Deposits exceeding the insured limit are recovered through the liquidation process and sale of assets of the failed institution.
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