The Deposit Protection Fund of Uganda (DPFU) has begun compensating depositors of EFC Uganda Limited Microfinance, which was liquidated by the Bank of Uganda in January due to liquidity issues.
During a press conference at the DPFU offices in Kampala City on Monday, February 12, 2024, 374 depositors received a total of Shs10 million, while 779 customers shared Shs125 million.
These payments were made to individuals who had deposits below the Shs7 million compensation limit.
Compensation for a second category of depositors, including companies, organizations, and group savers, has also begun. This category comprises 37 depositors who will receive a total of Shs52.6 billion.
Yusuf Mukiibi, Director of Finance and Operations at the Bank of Uganda, revealed that 1250 depositors will not be compensated because their loan balances were equal to or greater than their deposit amounts.
The DPFU received a list of 2066 EFC Microfinance clients from the Bank of Uganda, but after evaluation, only 816 clients with a total deposit value of Shs52.8 billion were found eligible for compensation.
The DPFU’s compensation process helps to mitigate the financial hardship caused by the microfinance institution’s closure.
The DPFU is a government-established fund that protects depositors’ money in licensed banks and microfinance institutions in Uganda.
The compensation process is ongoing, and more depositors are expected to be paid in the coming weeks.