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Uganda's payments licensing regime is anchored in the National Payment Systems Act, 2020 (NPSA) and the National Payment Systems Regulations, 2021, which vest the Bank of Uganda (BoU) with sole authority to license operators of payment systems, payment service providers (including electronic money issuers) and issuers of payment instruments. Three licence categories exist (PSO, PSP, IPI) with tiered minimum capital, and BoU issued the first Class-A PSP and e-money licences to MTN and Airtel's newly incorporated mobile-money subsidiaries in May 2021.
Bank of Uganda maintains a primary Acts and Regulations register confirming its statutory role as licensing and supervisory authority for payments and deposit-taking.
This licensing perimeter draws a clear line between deposit-taking banks supervised under the Financial Institutions Act and the growing population of non-bank payment service providers and electronic money issuers now brought under direct Bank of Uganda oversight for the first time.
Outlook
No further licensing-perimeter changes are expected imminently, but the NPS Act 2020 framework remains the active governing basis against which subsequent Bank of Uganda conduct, safeguarding and product-innovation measures will continue to be assessed.
Licensing, Authorisation & Market Access
The National Payment Systems Act, Cap 59 designates the Bank of Uganda as the licensing, supervisory and enforcement authority across Uganda's digital payments landscape, with jurisdiction covering both payment service providers and e-money issuers. This standing authority structure is unchanged this cycle, but BoU has signalled it intends to turn that authority inward on its own governing framework: the Deputy Governor's February 2026 remarks confirmed BoU is conducting an end-of-term evaluation of the National E-Payments Strategy 2021-2026 and is simultaneously developing a Second National E-Payments Strategy covering 2026-2031, with a stated priority within that successor strategy to review the NPS Act regulatory framework itself.
This is a materially different signal than routine guidance-level adjustment. A strategy-level commitment to review the primary licensing statute suggests BoU sees the current framework as potentially insufficient for the scale and pace of market growth it is now supervising, rather than merely in need of updated implementing regulations. For payment service providers and e-money issuers operating under the current NPS Act licensing regime, this represents a live watch item: the substance of any resulting framework change is not yet specified, but the direction of travel — a fundamental review rather than incremental guidance — has been stated as a strategic priority.
The bank-PSP versus non-bank PI/EMI distinction is relevant context for how any resulting framework change might land: a review of the NPS Act's core licensing architecture would need to address how obligations differ between bank-affiliated payment service providers and non-bank payment institutions and e-money issuers, a distinction inherent to the existing licensing categories the Act already recognises.
Outlook
The near-term signal to watch is the publication timeline and content of BoU's Second National E-Payments Strategy (2026-2031), expected around the fourth quarter of 2026. Whether the stated NPS Act review priority translates into a concrete legislative amendment process, or remains a strategic aspiration within the strategy document, will determine whether this becomes a binding market-access change or remains a watch-list item for a future cycle.
Sources and findings (6)
- T1https://ulii.org/akn/ug/act/2020/15/eng@2020-09-04/source
- T3https://aln.africa/insight/the-regulatory-framework-for-fintechs/
- T3https://www.theworldlawgroup.com/membership/news/key-features-of-ugandas-national-payment-systems-act
- T3https://www.tadvocates.com/blog-single.php?id=28
- T3https://www.kaa.co.ug/an-overview-of-the-national-payment-systems-act-2020/
- T3https://cepiluganda.org/cepil-legal-briefs/the-national-payment-systems-act-2020/