Bank of Uganda liquidates EFC Uganda, revokes its license

Bank of Uganda liquidates EFC Uganda Limited, revokes its license, and orders winding up of affairs.

Bank of Uganda liquidates EFC Uganda Limited, revokes its license, and orders winding up of affairs.

KAMPALA – Bank of Uganda (BoU) has placed EFC Uganda Limited, a microfinance institution, under liquidation, revoked its license, and ordered for the winding up of its affairs.

In a statement, BoU Governor Dr Michael Atingi-Ego said EFC has continuously failed to resolve its undercapitalization and poor corporate governance.

“This action has been taken because Bank of Uganda has determined that the continuation of EFC Uganda Limited’s activities is detrimental to the interests of its depositors due to the institution’s failure to resolve its significant undercapitalization and poor corporate governance,” he said on Friday.

Bank of Uganda and the Deposit Protection Fund of Uganda, he added, will inform depositors of the arrangements that will be put in place to enable them to access all of their deposits.

“All other creditors are requested to submit their claims to the Office of the Director Financial Stability, Bank of Uganda within 30 days from the date of this statement. All borrowers of EFC Uganda Limited must continue to service their loan obligations by making payments at Bank of Uganda offices and branches,” he said.

“Any person possessing property of EFC Uganda Limited should deliver it to Bank of Uganda and hand it over to the Office of the Director, Financial Stability,” he added.

BoU said in accordance with the law, no steps may be taken by any person to enforce any security over the property of EFC Uganda Limited (MDI) and no other proceedings or execution of legal process may be commenced or continued against the institution or its property.

Late last year, EFC Uganda closed up to five of its key business service centers within the Greater Kampala Metropolitan Area (GKMA) including Kireka, Mukono, and Nateete will close on November 21 while Kalerwe and Nansana.

“Starting from October 24th, 2023, EFC Uganda will embark on the process of closing down five of its business service centers to help streamline business processes while leveraging on partnerships in the banking sector,” the EFC said, describing the development as a strategic decision.

“It should be noted that EFC’s services to its esteemed clients will seamlessly continue through its cash handling branches at both Kamwokya Branch, on EFC House, Plot 45 Kira Road, Kamwokya and Ndeeba Branch, on Master Wood Plaza, Masaka Road, Ndeeba, the bank said at the time.

EFC Uganda Limited was among the microfinance institutions in Uganda licensed and supervised by the Bank of Uganda.

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