Finance Minister Henry Musasizi reaffirmed government’s commitment to supporting a stable and resilient financial system after meeting the DPF Board of Directors and management to review the institution’s performance and future plans.
DPF Board Chairperson Ben Patrick Kagoro said the Fund has remained financially sound and aligned with government priorities, with its assets increasing five-fold over the past years.
DPF is a government-established institution responsible for protecting depositors’ money in licensed financial institutions, especially if a bank or credit institution fails.
The Fund works like an insurance scheme for bank deposits. Financial institutions covered under the scheme contribute money to the Fund, which is then used to compensate depositors if a member institution is closed and cannot meet its obligations.
Every licensed bank and other covered financial institution pays contributions to DPF. These payments are based on their deposits and risk profiles.
DPF Chief Executive Officer Dr Julia Clare Olima Oyet said the Fund continues to protect depositors, with the current insurance limit of Shs10 million per depositor per bank covering 98.53% of all deposit accounts in Uganda.
She said the Fund will soon engage the Ministry of Finance, Planning and Economic Development over a proposal to double the deposit insurance coverage limit to Shs20 million.
“DPF is a strategic institution designed to strengthen confidence in the financial sector, thus contributing to Government’s tenfold growth agenda,” Dr Olima Oyet said.
Musasizi welcomed the Fund’s growth, saying a stronger deposit protection system would improve public trust in financial institutions, attract investment and support economic growth.
The minister said government would continue supporting initiatives aimed at building a stable financial environment capable of promoting job creation and long-term development.