KAMPALA, Uganda — The launch of the MoMo Advance overdraft product has propelled MTN Mobile Money lending to Shs 2.5 trillion, marking a nearly 80 percent increase in loan value over the past year.
The company’s mobile lending portfolio grew from Shs 1.4 trillion in 2024 to its current Shs 2.5 trillion high by the end of December 2025. This surge in credit value was matched by a massive expansion in the user base, with the number of unique borrowers growing from 3.5 million to more than 8 million in a single year.
MTN Mobile Money Managing Director Richard Yego identified the MoMo Advance product, which debuted in September 2024, as the primary engine behind the growth. The service allows customers to complete digital payments even when their wallet balance is insufficient, a feature that has quickly made it the company’s most popular credit offering.
“Lending has been a major driver of transaction volume and customer empowerment throughout last year and it will continue to be the case this year,” Yego said.
The performance report highlights a broader shift in how Ugandans access credit. While the majority of transactions—approximately 95 percent—are still conducted via USSD codes, there is a growing trend toward the use of the MTN mobile money app.
To capitalize on this momentum, the company plans to introduce upgraded applications for agents and merchants. These platforms will facilitate more sophisticated financial activities, including the payment of taxes, salaries and supplier transactions, while moving investment services from USSD to more secure app-based interfaces.
Despite the rapid internal growth, MTN continues to rely on strategic partnerships with traditional financial institutions to offer a variety of microloan products, bridging the gap between informal and formal banking.
