Uganda's New Cash Withdrawal Limits From 2027: What the UGX 50 Million Cap Means for You

From 1 January 2027, Bank of Uganda (BoU) will cap how much cash you can pull out over the counter at any bank, credit institution or microfinance deposit-taking institution (MDI) it supervises: UGX 50 million a day and UGX 250 million a week for individual accounts, and UGX 500 million a day and UGX 2.5 billion a week for corporate and business accounts, according to BoU's own circular, checked in October 2026. The cap only hits cash over the counter — transfers by RTGS, EFT or mobile money bank-to-wallet are unaffected.

What exactly is capped, and from when

The limits apply to cash withdrawals at the counter — walking into a branch and walking out with notes, or an equivalent over-the-counter cash-out. They don't touch how much you can move electronically.

Source: Bank of Uganda, "Introducing Over-the-Counter Cash Withdrawal Limits," 4 June 2026.

Notice the weekly cap isn't simply the daily cap times seven. For individuals, UGX 250 million works out to five days at the maximum UGX 50 million — so you can't max out the daily limit every single working day of the week. The same five-day ratio holds for business accounts.

Two dates matter:

• 1 July 2026 — BoU starts a public awareness campaign so account holders know what's coming and what digital alternatives exist.
• 1 January 2027 — the caps actually take effect.

Nothing changes for anyone before January 2027. If you're reading this now, in October 2026, you can still withdraw whatever your bank's current limits allow — check our Uganda hub for other money rules changing around the same time.

Why Bank of Uganda is doing this

BoU frames it as the next step in the country's shift to electronic payments, not a sudden policy. Its own clearing-house data shows electronic credit transfers climbing from 87.71% to 93.53% of transaction volume, and from 79.33% to 93.00% of transaction value, between the 2017/18 and 2025/26 financial years, with mobile money averaging 25% of transactions a year since 2020/21. The same circular also halves the interbank shilling cheque limit, from UGX 10 million to UGX 5 million — part of the same push to move large payments onto electronic rails instead of paper.

TechCabal reported that the move sits alongside Uganda's broader squeeze on cash-based transactions, which also includes the mobile money excise duty — see our breakdown of MTN MoMo and Airtel Money charges in Uganda for how that 0.5% tax on cash-outs already works.

Does this cover mobile money withdrawals too?

No — not based on what BoU has published. The circular says the limits apply to "all accounts held with supervised financial institutions," which means banks, credit institutions and MDIs. Mobile money wallets sit with MTN Uganda and Airtel Uganda, not with a supervised deposit-taking institution, so an ordinary mobile money agent cash-out isn't covered by this specific cap. BoU's own guidance actually points people toward mobile money bank-to-wallet transfers as one of the digital alternatives to large cash withdrawals, which only makes sense if mobile money itself stays outside the limit.

That's a meaningful gap if you're trying to plan around the new rule: moving money to your mobile wallet and cashing it out there isn't blocked by this circular, even though doing it at scale would still cost you in mobile money fees and the excise duty.

Who actually hits this cap

For most people doing day-to-day banking, UGX 50 million a day is nowhere close. It starts to matter if you're:

• Paying a large one-off bill in cash — settling a contractor, buying land, or paying school fees in bulk at the start of a term.
• Running a business with heavy cash operations — a wholesaler, a transport fleet owner, or anyone who still pays suppliers or staff in notes.
• Withdrawing a lump sum, like an NSSF Uganda benefit payout or savings from a registered SACCO, in one go.
• Building or renovating, where a mid-sized house in Uganda can cost UGX 90 million to UGX 300 million all in, and contractors are often paid in cash per phase.

Say you're a Kampala contractor who needs UGX 150 million in cash to pay a building crew for a month's work. From January 2027, you can't just withdraw it in one trip even if your account has the balance — you'd need at least three separate daily withdrawals at the UGX 50 million cap, and you'd still be inside the UGX 250 million weekly limit. Spread the same job over more than a week, or pay a portion by bank transfer or mobile money bank-to-wallet instead, and you avoid the bottleneck entirely.

How to plan around it

1. Move large payments to RTGS or EFT where you can. Both are explicitly excluded from the cap, and most banks already use them for amounts above a few million shillings.
2. Pay suppliers and staff by bank transfer or mobile money, not cash, wherever they'll accept it. It's faster to reconcile too.
3. Spread big cash needs across the week if you genuinely need physical notes — remember the weekly cap bites before the daily one does if you withdraw at the maximum every day.
4. Talk to your bank early if your business is cash-heavy. BoU has told supervised institutions they can apply for exceptions on behalf of sectors or specific transactions, and banks are expected to risk-profile customers — which means your own limit could end up lower than the headline cap, not higher, unless you ask.
5. Budget for the cheque change too. The interbank shilling cheque ceiling is dropping from UGX 10 million to UGX 5 million on the same timeline, so cheques stop being a workaround for large one-off payments.

What to watch out for

• Your bank's limit could already be lower than BoU's cap. The circular sets a ceiling, not a floor — individual banks can and do set tighter limits based on their own risk assessment of an account.
• Don't assume mobile money is a permanent escape route. It isn't covered by this circular, but Uganda has tightened mobile money rules before (the excise duty itself is one example), so treat it as today's gap, not a guaranteed one.
• Business owners in cash-dependent sectors should start the transition now, not in December 2026. Setting up bank transfer or mobile money payment flows with suppliers and staff takes time, and BoU's sensitisation campaign only starts in earnest from July 2026.
• Some business owners have already raised concerns that patchy internet and limited digital literacy in parts of the country make a hard switch to electronic payments harder than it sounds on paper. If that's your situation, start the conversation with your bank about an exception well before January 2027, not after.

Frequently asked questions

When do Uganda's new cash withdrawal limits start?

The limits take effect on 1 January 2027. Nothing changes before then — BoU only runs a public awareness campaign from 1 July 2026 to prepare account holders, but the caps themselves aren't active until the new year.

What exactly is the new withdrawal limit?

Individual accounts are capped at UGX 50 million a day and UGX 250 million a week. Corporate and business accounts are capped at UGX 500 million a day and UGX 2.5 billion a week, all for cash taken out over the counter at a supervised bank, credit institution or MDI.

Do these limits apply to mobile money withdrawals?

Not based on BoU's published circular. It covers accounts at supervised financial institutions, which doesn't include MTN Uganda or Airtel Uganda mobile money wallets. Cashing out through a mobile money agent still costs you the operator's fee and Uganda's 0.5% mobile money excise duty, but it isn't subject to this specific cap.

Can my bank set a lower withdrawal limit than BoU's cap?

Yes. BoU's circular sets the maximum, and it has told supervised institutions to build risk-based customer profiles that can justify lower, customer-specific limits. If your bank already caps your withdrawals below UGX 50 million a day, that's allowed.

What if I need to withdraw more cash than the daily limit allows?

Use RTGS, EFT or a mobile money bank-to-wallet transfer for the balance — none of those channels are covered by the cap. For a genuine one-off need, you can also ask your bank to request an exception from BoU, which the circular allows on a discretionary basis.

Why is Bank of Uganda doing this now?

BoU says it reflects how far Uganda has already shifted to electronic payments: electronic credit transfers now make up over 93% of both the volume and value of cleared transactions, up from under 88% and 80% respectively a decade ago. The same circular also halves the interbank cheque limit, pushing large payments further toward digital rails.