A former employee has filed a formal complaint with regulators, accusing a prominent Ugandan bank of systematically exploiting its staff through unlawful financial practices, violations of retirement benefits law, and coercive employment policies.
In a petition submitted to the Bank of Uganda, Mr. Michael Mwesigwa, formerly employed by Bank of Africa Uganda Ltd claims that the bank has engaged in a pattern of misconduct aimed at financially trapping employees, particularly during and after their exit from the institution.
Mwesigwa has also filed a suit in the High Court (Commercial Division), citing what he describes as “economic captivity” a situation where staff are allegedly manipulated into continued service and denied their rightful benefits upon resignation or termination.
Among the allegations raised are: the use of Clause 8(a) in staff loan agreements to impose immediate loan recovery, overdraft conversions, and collateral seizures upon resignation or termination; forced conversion of mortgage and unsecured loans into a commercial overdraft without the employee’s consent; and mismanagement of the staff provident fund by compelling employees to use their savings to offset these overdrafts without involving the legally required fund administrators.
Mwesigwa further alleges that the bank revokes preferential staff loan rates upon resignation and enforces unfavorable restructuring clauses, thereby discouraging voluntary exits and entrapping employees in what he terms “constructive financial bondage.” Additionally, he accuses the bank of enforcing overdraft facilities without lawful registration or variation of mortgage deeds, in violation of the Mortgage Act, 2009.
He contends that these practices breach employee contracts and violate several provisions of Uganda’s Constitution, including Article 24 (protection from inhuman and degrading treatment), Article 26 (right to property), Article 40 (rights of workers), and Article 50 (enforcement of rights and freedoms).
“The system is designed to punish anyone who dares to leave. Resignation feels like a financial death sentence,” Mwesigwa stated.
An anonymous current employee has confirmed similar experiences, claiming that staff are afraid to speak out due to fear of job loss and retaliation. “We’re scared. If you challenge the system, you’re pushed out—and financially destroyed,” the source revealed.
Mwesigwa’s petition calls on the Bank of Uganda to investigate the bank’s loan enforcement practices and provident fund handling, audit the application of Clause 8(a) across all staff loan agreements, and ensure full compliance with labor, retirement benefits, and constitutional laws. He also urges the regulator to guarantee that exiting staff can access their provident fund contributions without unlawful conditions.
He has warned that failure to act may compel him to file a constitutional petition under Article 137 of the Constitution.
Copies of the complaint have been shared with the Uganda Retirement Benefits Regulatory Authority (URBRA), the Attorney General, the Bank of Africa Groupe, and the Uganda Bankers Association, urging swift intervention and institutional accountability.
While investigations are yet to begin, the growing concerns and whistleblower accounts have ignited renewed scrutiny of employee welfare practices in Uganda’s banking sector.
