The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | Dr Louis Kasekende, the Bank of Uganda Deputy Governor, has said he is irked by the high charges placed on mobile money transactions every time one sends or withdraws money.
Kasekende told a gathering in Kampala on Wednesday: “I must express our displeasure at the relatively high charges being imposed on some of the financial solutions.”
He added that mobile money charges for sending monetary value within the same network in Uganda is currently about double the applicable rate in Kenya and Tanzania if the local shilling rates are converted into US dollar terms.
A transaction of 1 million shillings can attract charges of up 10,000 shillings with inclusive taxes. Almost the same amount is charged when the receiver attempts to withdraw the money.
Telecoms have blamed high charges on taxes the government has imposed on the platform.
Mobile money in Uganda is one of the most used mode sending and receiving money with figures showing massive growth every year.
As at June 2018, the number of mobile money transactions increased to 1.3 trillion up from 1.1 trillion in June 2017, according to the Bank of Uganda.
The corresponding value of mobile money transactions increased to 73.1 trillion shillings as at June 2018 from 52.8 trillion shillings in the previous year.
Mobile money has been seen as one of the financial inclusion opportunities where people that previously were excluded from the formal banking system can be accommodated.
However, there are fears that increasing costs of using the platform could make more people turn away from it.
Already, the number of people using the platform dropped from 22.8 million in June 2017 to 22.7 million in June 2019.
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