Building a Bank for Uganda’s Next Chapter

 

Under your leadership, KCB Bank Uganda has undergone significant growth and transformation. How would you describe the bank’s evolution and strategic direction in Uganda’s increasingly competitive banking sector?

I’ve been in this role for about six years, and when we started, we went through what we called a shake-up to reposition ourselves. The environment around us had completely changed. The KCB that originally came into Uganda was largely following regional trends, with less focus on the opportunities within the local market. That had to change.

That was the reset we began in 2019 and 2020, although COVID-19 disrupted some of that momentum. At Group level, we were also entering a new strategic cycle, so we took the opportunity to rethink the business. We focused much more deliberately on supporting local enterprises and identified about five key dominant sectors. One of the biggest gaps we recognised was digitisation and the use of technology in how we deliver banking.

We also changed where we were putting our energy. We became much more active in manufacturing and pivoted away from a heavy commercial real estate focus towards areas such as agro-processing, social services, digital financial services and regional trade.

But the reset wasn’t just about the business. It was also about our people. We wanted to make them more customer-centric, but also hungrier, because our ambitions had fundamentally changed.

Today, our ambition is to be dominant in the sectors where we play. For us, that means being at least a top-five player or at the top of the market. We’ve seen very encouraging growth over the last five years, and we believe there is still much more ahead of us.

 

Uganda continues to attract investment across infrastructure, manufacturing, agriculture and energy. From a banking perspective, where do you see the strongest opportunities for long-term growth?

I think you follow the money.

On one hand, you look at where investors and entrepreneurs are putting their money, and on the other, you look at where government is investing. Infrastructure spend cannot be ignored. It is necessary, it is transformative, and there is significant money involved.

Our focus has been to support the local players in that space through equipment finance and contract finance, while also supporting regional players in construction and agro-processing.

We’ve also supported tourism, particularly the hotel sector, as well as services, health and education. And we continue to push manufacturing and what we call the import-substitution agenda, targeting both local and regional markets.

There is a particularly interesting opportunity in markets such as South Sudan, Eastern Congo, Northern Tanzania and Rwanda. A number of locally based businesses are positioning themselves to serve these markets, helped by improving transport corridors and access to energy. It is becoming easier to manufacture from Uganda and reach those markets.

In agro-processing, we are also starting to see a real shift towards value addition. Coffee is a good example. We are seeing more players establish light-processing capabilities. Sugar is becoming increasingly end-to-end, and we are seeing opportunities in milk, beef, fish and grains such as simsim and sunflower.

What is exciting is that these opportunities are serving both the local and export markets.

 

Do you have specific initiatives through which KCB is supporting Uganda’s agro-industrial sector?

Yes, absolutely. We take a sector-based approach. We have teams that understand particular sectors, but we also operate what we call value-chain ecosystem banking.

If we support the main manufacturer, we don’t just stop there. We look at the suppliers and the broader ecosystem around that business.

Take agriculture, for example. If we finance a sugar grower, there is the anchor plantation, but there are also outgrowers and transporters moving produce from the outgrowers to the mill. We want to understand and support that entire ecosystem.

The same applies to manufacturing. If we support an FMCG business, for instance, there is the import or purchase of raw materials, but there is also the distribution and delivery side of the business.

For us, it is really about ecosystem banking—understanding the entire value chain and how the different players depend on each other. We’ve also invested significantly in platforms that are helping businesses digitise their operations and, importantly, their business cycles.

Digital transformation is reshaping banking across Africa. How is KCB Uganda using digital banking, mobile platforms and agency banking to expand financial inclusion and improve customer experience?

First of all, it is core to our strategy. Our last strategic cycle, which coincided with our reset period, was themed Beyond Banking. The idea was to move beyond traditional banking and think differently about how we serve customers.

One of the biggest things we did was completely revamp our digital offering. We rebuilt our mobile app, which had been almost non-existent, and we significantly increased our investment in agency banking. We now have around 500 agents, and we are part of the Agency Banking Corporation, which provides a shared platform.

One of the beauties of digitisation is that it doesn’t just give customers convenience. It gives you the ability to scale and reach people in ways that traditional brick-and-mortar banking simply cannot. 

We’ve also partnered with the two major telcos here, MTN and Airtel, and we continue to build partnerships with smaller fintechs.

That is important because we have to be future-ready. Customer preferences are changing, and so are demographics. Around 75% of Uganda’s population is under 35. When you look at that demographic, you realise that the only way you are going to reach a large part of that population is through digital channels.

And with the evolution of electronic money, which is also an important Central Bank and government agenda, we believe we are well positioned for what is coming.

 

Has this growth in digital banking and partnerships helped KCB reach previously underserved segments of the population?

Absolutely. We were never traditionally players in micro-lending and micro-savings. Through our partnerships with MTN and Airtel, we can now offer products in those spaces. So, we have become players in that segment.

The growth has been remarkable. We have probably grown ten times in about two years—growth that previously took us almost 15 years to achieve. That is the impact of the digital push.

And once you start serving these customers and understanding their behaviour better, you begin to see opportunities to serve them in more ways. We are looking at areas such as insurance, particularly health insurance, as well as more customised and bespoke offerings. The better we become at using data and analytics, the better we can understand what customers actually need.

But for me, the most critical thing is that we are gradually introducing more people to formal financial services—whether that is borrowing, paying, saving or running a micro-enterprise.

That is a very important part of financial inclusion.

 

SMEs and regional trade remain central to East Africa’s economic development. How is KCB supporting entrepreneurs, cross-border commerce and businesses operating across the region?

I’ll start with cross-border commerce because that has always been one of KCB Group’s key strengths. We operate a shared banking platform across the markets in which we operate, including Burundi, Rwanda, Tanzania, Kenya, Uganda and South Sudan, and more recently the DRC.

For many of our customers, what would traditionally have been a cross-border payment can effectively become an inter-account transfer. Subject to the currency requirements, it can be fairly seamless.

We build on that. For regional corporates and even some local corporates, we also have a dedicated Regional Corporates Desk that focuses specifically on cross-border trade and facilitates import and export transactions.

Then there are the smaller players—the people selling second-hand merchandise, buying produce or running businesses across borders. Again, because of our shared platform, it becomes much easier for them to transact.

That is how we position ourselves: we are a regional player, and we want to facilitate your trade across the region. As we continue integrating our digital capabilities, another important opportunity is giving customers who come into the KCB ecosystem through our telco partnerships the ability to make cross-border transfers directly from their wallets.

 

Since your appointment as Managing Director, what would you say has been your biggest milestone as a leader?

Obviously, growth. Growth is a given imperative. We have literally tripled our balance sheet, grown profitability four times and grown our workforce almost four times. We have also invested heavily in our people.

But if I had to put one thing at the centre of it, I would say it is our customers. For me, it starts with significant growth in our customer base because customers are the engine of our growth.

We have also made a heavy investment in digitisation, and we are now seeing the returns from that investment. We have increased our market visibility and become part of Uganda’s trillion-shilling banking league.

More importantly, I think we have established ourselves as a bank that is responsive to customer concerns, ambitious and determined to become a market leader. So, if you ask me what the milestone is, I would say it is the combination of customer growth, digitisation, the change in our operating model and, most importantly, our people.

That is the milestone.

 

What have been the key drivers of this momentum, and how do you intend to sustain it?

One is investment in people. And that has a dual approach: people and technology. Those are two of our biggest drivers, and I believe they will continue to give us a competitive edge.

Another is our continued focus on key growth sectors.

We remain a universal bank, but we are not a bank that is going to run around trying to do everything. We are becoming more focused—not necessarily specialised, but deliberately focused—on the sectors where we see the strongest growth opportunities.

Then there are our partnerships.

We continue to invest in the platforms that support those partnerships. Through Group investments, we are rolling out a new agency banking platform and a new merchant platform. These digital investments and partnerships will continue to underpin our growth.

At the same time, we will remain active in major infrastructure projects.We were one of the earliest financiers of the EACOP project, and we continue to walk that journey, again aligning ourselves with national priorities.

I believe that combination of people, technology, partnerships and sector focus will continue to work for us.

 

As cybersecurity and operational resilience become increasingly important, how is KCB strengthening its technology capabilities while maintaining customer trust in a digital-first environment?

First, I think the important thing is creating awareness of both the risks and opportunities that come with a digital environment.

Second, we have to understand customer behaviour. We invest in awareness and in training our staff because technology is only as strong as the people using it.

Third, there are the safeguards around our platforms. We continue to maintain robust controls and operating-system security, and that has supported the growth of our digital customer base. We have had very limited incidents, if any, and where something does happen, we go to great lengths to investigate it and reassure our customers.

But we also cannot be deterred by every misstep. Digital is the future, and the digital-first agenda will only become more deeply embedded in the bank’s overall operating model. Our responsibility is to keep improving how we manage the risks while continuing to innovate.

 

Is your cybersecurity network managed regionally or locally?

It is a dual approach.

Because we operate on a shared platform, there is a Group dimension to our cybersecurity, but we also have a strong local component. We have teams here in Kampala and in Nairobi working together to oversee our cybersecurity posture.

Looking ahead, what is your outlook for Uganda’s banking sector and the broader economy?

I think you can fairly say that Uganda’s banking sector is now more resilient.

If you look at the results from last year, most banks were showing double-digit growth and increased profitability. On average, many were reporting profitability of around UGX 10 billion or more.

We have also seen increased capitalization, as required by the Central Bank, more active participation by banks in infrastructure projects, and a continued push towards digitisation.

So, the sector remains resilient.

I don’t necessarily see a lot of consolidation, largely because of the ownership structure of the banking sector, but I do see room for expansion into new segments. We are seeing that in areas such as micro-earning and micro-savings, as well as in the government’s ATM strategy 10-fold strategy.

The banking sector also operates in a very well-regulated environment. It is liberal, but the Central Bank is both engaging and tough where it needs to be. That provides a level of assurance and stability.

It is a great environment, but it is going to become very, very competitive. Banks will have to keep asking themselves how efficient they can become and how well they can respond to an evolving customer.

But ultimately, I still believe banking is a high-growth, high-return sector.

Why do you believe KCB is a partner of choice, particularly for new players entering the Ugandan market?

We’ve been in this region for a long time. There is no doubt about that.

We pride ourselves on being a bank that is, just like the country, open for business. We are happy to listen, but more importantly, we position ourselves as a partner to anyone who wants to grow. That is the journey we want to take with our customers.

Of course, a lot of banks will say the same thing. But I think the difference for us is that we have strongly demonstrated it in Uganda over the last five years. We have actively taken positions, walked the journey with our customers and tried to understand their businesses.

Part of our shift from being primarily focused on regional trade to also supporting local industry has required a degree of risk appetite.

We are prepared to take that risk with both new and existing players who are venturing into new sectors.

So, I would say KCB is open for business. We want to walk that journey of prosperity with prospective investors, new businesses and existing customers.

 

What is your message of confidence to new investors and businesses looking at Uganda?

I think they need to understand one thing first and foremost: Uganda is open for business.

We have a growing population, which will be an important market in the future, if it isn’t already. We also have access to land and resources that create significant opportunities. The country has also realised that it is resource-rich. That gives us opportunities beyond the traditional areas such as tourism. Many of our minerals will be required in the future.

And then there is the huge opportunity in being the food basket of Africa. That is an opportunity we could lose if we don’t move decisively enough towards commercial agriculture. A lot of our agriculture is still organic and relatively informal. Take milk, we now produce powdered milk. There was a time when, particularly during the rainy season, we simply did not have enough capacity to process what our farmers were producing. Today, one of our customers is a very active exporter and continues to look for new markets in food-deficient countries.

Fish is another example. We have been exporting smoked fish.

There is a whole story around Uganda’s opportunities, but I think the story has not been told well enough, and it has not always been supported as strongly as it should be.

And that, for me, is the opportunity. Uganda has the resources, the people and the potential. What we need is the ambition, investment and partnerships to turn that potential into sustained economic growth.