The Deposit Protection Fund of Uganda (DPF) has grown its assets to about Shs2.3 trillion, up from Shs470 billion when it became operational in 2017..
The Deposit Protection Fund of Uganda (DPF) is a government agency that provides deposit insurance to customers of deposit-taking institutions licensed by Bank of Uganda.
DPF was established as a separate legal entity following the enactment of the Financial Institutions Act Cap. 57. Prior to this, DPF was managed by Bank of Uganda.
DPF Chief Executive Officer Dr Julia Clare Olima Oyet said the Fund continues to protect depositors, with the current insurance limit of Shs10 million per depositor per bank covering 98.53% of all deposit accounts in Uganda.
“DPF is a strategic institution designed to strengthen confidence in the financial sector, thus contributing to Government’s tenfold growth agenda,” Dr Olima Oyet said.
“As the Fund reaches the midpoint of its five-year Strategic Plan (2022–2027), it is a pleasure to report that it has remained steadfast and resilient in its operations,”she stated.
According to her during the reporting period, the Fund’s total assets grew by 17%, rising from UGX 1,622 billion as of June 30, 2024, to UGX 1,890 billion as of June 30, 2025. This growth was primarily driven by increased investments in treasury instruments, which rose from UGX 1,595 billion to UGX 1,866 billion over the same period. Meanwhile, total reserves grew by 17%, increasing from UGX 1,563 billion in FY 2023/2024 to UGX 1,830 billion in FY 2024/2025. Additionally, the Fund’s comprehensive income improved significantly, rising from UGX 213 billion to UGX 267 billion. These achievements highlight the Fund’s commitment to sustainable growth, prudent financial management, and operational efficiency.
“As we embark on the new financial year, embracing technological advancements remains a key priority for the Fund, as it seeks to modernize its systems and processes to meet the evolving demands of the financial landscape.The Fund will soon engage the Ministry of Finance, Planning and Economic Development over a proposal to double the deposit insurance coverage limit to Shs20 million,”Oyet stressed.
Finance Minister Henry Musasizi reaffirmed government’s commitment to supporting a stable and resilient financial system after meeting the DPF Board of Directors and management to review the institution’s performance and future plans.
DPF Board Chairperson Ben Patrick Kagoro said the Fund has remained financially sound and aligned with government priorities, with its assets increasing five-fold over the past years.
DPF is a government-established institution responsible for protecting depositors’ money in licensed financial institutions, especially if a bank or credit institution fails.
The Fund works like an insurance scheme for bank deposits. Financial institutions covered under the scheme contribute money to the Fund, which is then used to compensate depositors if a member institution is closed and cannot meet its obligations.
Every licensed bank and other covered financial institution pays contributions to DPF. These payments are based on their deposits and risk profiles.
Musasizi welcomed the Fund’s growth, saying a stronger deposit protection system would improve public trust in financial institutions, attract investment and support economic growth.
The minister said government would continue supporting initiatives aimed at building a stable financial environment capable of promoting job creation and long-term development.
The DPF guarantees that in the event of a bank closure, account holders at licensed institutions are protected up to UGX 10 million per account
The fund’s expansion reflects broader sector health, with total deposits in the banking sector hitting UGX 41.6 trillion across more than 17 million deposit accounts. This robust growth positions the fund to effectively execute its mandate, which includes paying out protected deposits to customers of closed banks like EFC Uganda Limited and Mercantile Credit Bank Limited
While the DPF is equipped to cover basic retail accounts in full, it has stated that raising the protected limit above UGX 10 million could potentially trigger fraud or reckless lending behaviors within the banking sector. Deposits exceeding the insured threshold are typically recovered through the standard liquidation and asset auctioning process of the failed institution.
