KAMPALA, Uganda — Absa Bank Uganda is turning to consumer education to address the challenge of bad debt, launching a financial literacy campaign Thursday designed to curb the industry’s nonperforming loan rates.
The initiative targets a persistent issue in the Ugandan lending market: borrowers who access credit without a clear strategy for repayment or business growth. By focusing on financial discipline and loan structuring, the bank hopes to improve the quality of its credit portfolio.
Moses Rutahigwa, the retail and business banking director at Absa Bank Uganda, said nonperforming loans are often the result of poor financial decisions or the diversion of funds to unproductive uses. He noted that while the bank provides accessible financing, the new campaign is intended to ensure customers borrow with purpose and confidence.
The campaign comes as the Ugandan banking sector sees slight improvements in credit risk. According to the Bank of Uganda, the industry’s nonperforming loan ratio fell to 3.66% in September 2025 from 3.74% in the previous quarter. Despite the recovery, bank officials say education remains the most effective tool to prevent future defaults.
Throughout the year, the bank will use its branches and digital channels to offer guidance on debt management and business planning. The launch featured insights from finance coach Newton Buteraba and business leader Robert Kabushenga, who discussed the discipline required to manage credit sustainably.
The effort mirrors national strategies led by the Bank of Uganda and the Uganda Bankers Association to strengthen the financial system through consumer protection and informed decision-making.
Absa Bank Uganda, a member of the Johannesburg-listed Absa Group Ltd., currently operates 39 branches across the country. As part of this literacy-led approach, the bank is promoting a range of credit products, including personal loans up to 400 million Ugandan shillings and unsecured business loans up to 200 million shillings.
