Centenary Bank has become the seventh entity to venture into custodial services in Uganda.
The bank launched the services during a function held at Mestil Hotel in Kampala on Tuesday.
Speaking during the launch, Bank of Uganda Governor, Michael Atingi-Ego described the launch as a “landmark moment” for Uganda’s financial sector, particularly as the country pursues an ambitious plan to grow its economy to $500 billion by 2040.
“Custodial services are the bedrock of trust in any financial system,” he said. “They protect ownership, validate transactions, reduce risk, and sustain confidence across markets.”
The Governor noted that Uganda’s retirement benefits sector alone manages an estimated shs13 trillion in assets, while collective investment schemes and insurance funds continue to expand—making strong custodial frameworks increasingly essential.
He emphasized that well-governed custody systems enhance transparency, ensure asset segregation, and reduce operational risks, ultimately strengthening financial stability.
According to the central bank governor, improved custodial infrastructure will also help attract both domestic and international investment, deepen capital markets, and mobilize long-term financing for national development.
He said Uganda’s economy remains resilient, with growth projected between 6.5% and 7% in the near term, supported by stable inflation and strong foreign reserves. The anticipated start of oil production is expected to further accelerate economic expansion.
However, the Governor pointed out that gaps remain, particularly in the pension sector, where custodial services could unlock more efficient and secure investment.
“This is more than a corporate milestone. It is a catalyst for Uganda’s broader economic transformation.”
Centenary Bank Uganda Managing Director Fabian Kasi described the development as more than a product rollout.
“It is a statement about how the bank sees its role in Uganda’s financial markets—as a partner in trust, governance, and long-term institutional growth,” he said.
Kasi said the move reflects a shift in how custody is perceived.
“To redefine custody is to acknowledge that it can no longer remain in the background.As markets mature, custody must evolve from a back-office necessity into a strategic enabler of transparency, efficiency, and confidence.”
Kasi emphasized that trust remains central to institutional investing.
“Institutional investors operate on confidence—confidence in data, governance, systems, and processes. Custody sits at the centre of this trust architecture.”
He added that strong custody systems are essential for sustainable capital growth.
“Capital grows best where infrastructure is strong, assets are secure, reporting is accurate, compliance is embedded, and technology supports scale without compromising control.”
Centenary Bank enters the space with total assets exceeding shs8.6 trillion and a loan book of over shs 4 trillion, supporting more than 300,000 enterprises across Uganda.
“We bring a strong and resilient financial foundation, underpinned by disciplined risk management and sustained profitability,” Kasi noted.
Kasi also stressed that custody thrives within a broader ecosystem.
“Custody does not function in isolation. It works best when banks, regulators, fund managers, trustees, and policymakers operate in alignment.