KAMPALA, Uganda — A four-day internet shutdown stalled 1.4 trillion shillings in fintech payments, according to industry data released by the Financial Technology Services Providers Association.
The disruption highlighted the country’s growing dependence on digital finance as liquidity dried up and billions in daily payment flows remained frozen across the network. FITSPA reported that for each day the internet remained off, Uganda’s digital economy lost an estimated 357 billion shillings in stalled transactions.
Vincent Mwijukye, chairman of FITSPA, said the cost was systemic and deeply felt by households, businesses and financial institutions. By the fourth day of the blackout, the cumulative impact had reached 1.4 trillion shillings.
Records from the Bank of Uganda as of June 2025 show that payment service providers process about 325 trillion shillings annually, which averages to 893 billion shillings in digital transactions each day. FITSPA estimated that approximately 40 percent of that daily volume could not be processed during the shutdown.
When you look at it day by day, the numbers are staggering, Mwijukye said. For each of the four days the internet was off, close to 357 billion shillings could not move through the system.
Although the Uganda Communications Commission granted exceptional approval for digital financial services to continue operating, Mwijukye said the directive was implemented abruptly and lacked coordination. Many fintechs were shut down because internet service providers did not uniformly apply the exemptions.
This lack of coordination meant even essential services experienced outages. While USSD services were partially restored on the second day, functionality was limited to savings and account access. Users were unable to make withdrawals or deposits.
USSD helped people check balances or save, but it did not solve the liquidity problem, Mwijukye said. People could see their money, but they could not use it.
The 40 percent reduction in digital transaction usage hit traders, transport operators and small businesses that rely on daily cash flows. Many informal businesses with thin margins were forced to close.
The shutdown exposed weaknesses in how critical digital infrastructure is protected during periods of restriction, FITSPA said. The group is calling for stronger engagement with regulators to prevent similar disruptions.
The Bank of Uganda did not immediately respond to requests for comment. Telecom operators MTN and Airtel said it was too early to assess the full impact of the shutdown on their revenues and operations.
