The Deposit Protection Fund (DPF) has finished paying individually protected depositors of the closed EFC Microfinance Uganda. Last month, the Bank of Uganda liquidated EFC Uganda Limited, revoked its license, and ordered its affairs to wind up due to violations of capitalization and governance regulations.
Under the Financial Institutions Act 2004, as amended, the DPF protects deposits up to 10 million shillings per depositor, totaling about 2 billion shillings. The Bank of Uganda, acting as the statutory liquidator, will handle the unprotected deposits exceeding this amount, valued at about 50 billion shillings.
Depositors with amounts exceeding 10 million shillings are required to submit personal information by February 12 to facilitate payment. The requirements include confirmation of the account name, signatories’ names and signatures, alternative bank accounts, National ID cards, and mobile phone numbers. Companies must provide additional documentation.
Kenneth Egesa, BoU Director of Communication, announced that payments for unprotected deposits will commence on February 19, 2024, after verifying the submitted information. All affected depositors will receive full payments.
Yusuf Mukiibi, DPF Director of Finance and Operations, stated that 98% of depositors have amounts less than 10 million shillings, while only 2% have higher amounts, which will be managed by BoU.
For deposits up to 10 million shillings, individual account holders with verified information will be paid through Stanbic Bank, Lugogo Branch, starting from February 5, 2024. Depositors must present their National ID cards and mobile numbers.
Depositors with credit facilities will receive reduced payments, and arrangements are being made to pay companies and joint account holders starting from February 12, 2024.
