KAMPALA, Uganda — Billions of shillings are trapped in Uganda’s banking and mobile money systems, with families facing major legal hurdles to claim their inheritance.
At the center of the issue is an estimated Shs70 billion sitting in dormant mobile money accounts at the Bank of Uganda, according to figures released in 2023.
The true figure today, including dormant bank accounts, could be much higher. The Bank of Uganda declined to comment on the latest totals.
Despite the huge sums, payouts remain painfully slow. Over two years, the central bank only disbursed about Shs268.7 million to claimants, a fraction of what is available.
Why the Funds Remain Stuck
Legal experts blame a complicated and slow system. Ivan Bwowe, a lawyer, says many families simply don’t understand what it takes to legally access a deceased relative’s assets.
“Being next of kin or a spouse is not enough,” Bwowe explained. “Without legal authority—through a Will, Letters of Administration, or Probate—you cannot access the estate.”
Under Uganda’s National Payment Systems Act (2020), a mobile money account becomes dormant after nine months of no activity. If inactivity persists for another six months, the account is closed and the money is transferred to the Bank of Uganda.
Relatives then have seven years to claim the funds by submitting the right legal documents. After that, the money is moved to the Consolidated Fund, essentially becoming government property.
The Paper Trail Families Must Follow
Claiming a deceased relative’s money involves several steps. The family must first obtain a death certificate from the National Identification and Registration Authority (NIRA).
They must then open a file at the Administrator General’s office, which organizes family meetings to identify estate managers.
Once consensus is reached, a “certificate of no objection” is issued, allowing the family to seek Letters of Administration from court. Only after securing these documents can they approach banks or mobile money providers.
Henry Kuloba Wesaka, assistant administrator general, emphasized the importance of following the law:
“In Uganda, it is a criminal offense to deal with a deceased person’s property without Letters of Administration,” Kuloba said. “These letters are crucial to legally manage and distribute an estate.”
The Administration of Estates Act, the Succession Act, and Section 59 of the Financial Institutions Act all back this stringent process.
A Broken System in Urgent Need of Reform
The drawn-out procedures discourage many families from even starting the claim process. In the meantime, billions remain idle at the central bank, while rightful beneficiaries grapple with bureaucracy, family disagreements, and legal costs.
Calls are growing for reforms to simplify the claims process without compromising legal safeguards.
Until then, many Ugandan families may continue mourning not just their loved ones, but also the wealth locked beyond their reach.
