March 2, 2024

Bank of Uganda closes EFC Uganda Limited

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The Bank of Uganda (BoU) has announced the liquidation and revocation of EFC Uganda Limited’s license.

According to a letter released by the Bank of Uganda Deputy Governor, Mr. Michael Atingi-Ego, the Bank exercised its powers under Sections 72 (1) and 12 (1) (d) and (g) of the Microfinance Deposit-Taking Institutions (MDI) Act, 2003, as amended.

However, Atingi Ego said that “the Bank of Uganda (BoU) has, effective today, January 19, 2024, placed EFC Uganda Limited under liquidation, revoked its license, and ordered the winding up of its affairs.”

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Furthermore, Ego says the move was taken after the BoU determined that the continuation of EFC Uganda Limited’s activities is detrimental to the interests of its depositors due to the institution’s failure to resolve its significant undercapitalization and poor corporate governance.

EFC, a microfinance institution that was licensed and supervised by the Bank of Uganda, has been ordered to wind up its services across the country.

In conclusion, the bank has yet to inform depositors on how to access their deposits, urging creditors to submit their claims to the Office of the Director of Financial Stability within 30 days.

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