KAMPALA, Uganda — The Bank of Uganda (BOU) has introduced new limits on over-the-counter cash withdrawals and reduced cheque transaction thresholds as part of efforts to accelerate the country’s transition to a cash-lite economy.
The changes, which take effect on 1st January 2027, were announced in a circular dated May 29, 2026, and addressed to chief executive officers of commercial banks, credit institutions, and microfinance deposit-taking institutions.
Under the new rules, individuals will be allowed to withdraw a maximum of Sh50 million per day and Sh250 million per week over the counter. Corporate and business account holders will be limited to Sh500 million daily and Sh2.5 billion weekly.
According to the central bank, the measures are intended to support its e-payments strategy and the broader national digitisation agenda.
“In line with the Bank of Uganda e-payments strategy, which aims to promote a cash-lite economy as part of the broader national digitisation agenda, the Bank of Uganda has reduced the interbank cheque value limits and introduced over-the-counter cash withdrawal caps,” the circular states.
BOU said the interventions reflect its commitment to building a modern, digital-first financial system by encouraging customers and businesses to shift from paper-based transactions to secure electronic payment channels.
Reduced Cheque Limits
The central bank has also lowered the maximum value of interbank cheques across several currencies.
The limit for Uganda shilling cheques has been reduced from Sh10 million to Sh5 million. US dollar cheque limits have been cut from $2,750 to $1,375, while euro cheque limits have been lowered from €2,250 to €1,125. Pound sterling cheque limits have been reduced from £2,200 to £1,100, and Kenya shilling cheque limits from KSh300,000 to KSh150,000.
BOU’s Director of National Payment Systems said the delayed implementation date will provide sufficient time for existing cheque instruments to be cleared and paid before the new thresholds come into force.
Key Limits at a Glance
| Transaction Type | Current Limit | New Limit (From 1st Jan 2027) |
|---|---|---|
| Interbank cheque (UGX) | Sh10m | Sh5m |
| Individual cash withdrawal (daily) | — | Sh50m |
| Individual cash withdrawal (weekly) | — | Sh250m |
| Business cash withdrawal (daily) | — | Sh500m |
| Business cash withdrawal (weekly) | — | Sh2.5bn |
| USD cheque | $2,750 | $1,375 |
| Euro cheque | €2,250 | €1,125 |
| Pound cheque | £2,200 | £1,100 |
| Kenya shilling cheque | KSh300,000 | KSh150,000 |
