The formulation of a law to allow agency banking is in the final stages, Bank of Uganda has said.
Louis Kasekende, the deputy governor of BOU, said the “Financial Institutions Act 2004 will be amended to provide for agency banking, bank assurance and Islamic banking so, the banks will be allowed to offer those products.” He was speaking during the launch of KCB’s branch at Forest mall recently.
Kasekende said cabinet had already looked at the draft bill. With agency banking, an agent such as a supermarket is given the skills to offer basic banking services while acting on behalf of the bank. Joram Kiarie, the managing director of KCB, said it was about time Uganda adopted agency banking, as the service is already in Kenya.
“KCB has done this before, especially in Kenya. We have up to 8,100 agents throughout Kenya and the people’s response has been good,” he said
Kasekende said small and medium enterprises are yet to fully embrace SME banking. Kiarie said KCB is already in Kikuubo to serve the SMEs there.
Source : The Observer