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

From 1 January 2027, you won't be able to withdraw unlimited cash over the counter at a Ugandan bank. Individuals will be capped at UGX 50 million a day.

The limit only applies to cash. Transfers by RTGS, EFT or to mobile money aren't affected. Business accounts get higher limits. The details are in Bank of Uganda's circular, checked October 2026.

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 a similar over-the-counter cash-out. They don't limit how much you can move electronically.

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

Notice that the weekly limit isn't simply the daily limit times seven. For individuals, UGX 250 million is five days at the UGX 50 million maximum, so you can't take the daily maximum every working day of the week. Business accounts work the same way, at five times the daily limit.

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 limits take effect.

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

Why Bank of Uganda is doing this

BoU describes it as the next step in Uganda's move to electronic payments, not a sudden policy. Its own clearing-house data shows electronic transfers rising from 87.71% to 93.53% of the number of transactions, and from 79.33% to 93.00% of their value, between 2017/18 and 2025/26, with mobile money averaging 25% of transactions a year since 2020/21. The same circular also halves the limit on interbank shilling cheques, from UGX 10 million to UGX 5 million, as part of the same push to move large payments from paper to electronic channels.

TechCabal reported that the move is part of Uganda's wider squeeze on cash, 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, based on what BoU has published. The circular says the limits apply to "all accounts held with supervised financial institutions", meaning banks, credit institutions and MDIs. Mobile money wallets are held with MTN Uganda and Airtel Uganda, not with a supervised bank, so an ordinary mobile money agent cash-out isn't covered. BoU's own guidance points people to mobile money bank-to-wallet transfers as one alternative to large cash withdrawals, which only makes sense if mobile money is 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. See our Uganda mobile money charges calculator for the exact cost at any amount.

Who 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 big one-off bill in cash, such as paying a contractor, buying land or paying school fees in bulk at the start of term.
• Running a business that handles a lot of cash, like 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 withdraw it in one trip, even if your account has the money. You'd need at least three separate daily withdrawals at the UGX 50 million limit, and you'd still be inside the UGX 250 million weekly limit. Spread the job over more than a week, or pay part of it by bank transfer or mobile money bank-to-wallet, and you avoid the problem completely.

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 need physical notes. Remember that if you withdraw the maximum every day, you'll hit the weekly limit before the daily one stops you.
4. Talk to your bank early if your business uses a lot of cash. BoU has told banks they can apply for exceptions for whole sectors or specific transactions, and banks are expected to assess each customer's risk. That means your own limit could end up lower than the headline limit, 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.

Things to watch for

• Your bank's limit could already be lower than BoU's. The circular sets a maximum, not a minimum, and banks can and do set tighter limits based on their own view of an account's risk.
• 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 start on 1 January 2027. Nothing changes before then. BoU is only running a public awareness campaign from 1 July 2026 to prepare account holders, and the limits don't apply 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 rest, because none of those are covered by the limit. For a genuine one-off need, you can also ask your bank to request an exception from BoU, which the circular allows at BoU's discretion.

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.