In ensuring financial sector stability, the DPF works closely with the Bank of Uganda. BoU has a range of options it can use to ensure that contributing institutions exit the sector without inconveniencing depositors. As such, the Bank of Uganda would advise DPF to pay depositors out of the fund, as the very the last option.  This is in line with the International Best Practice.


  • DPF protects a large percentage of retail depositors. More than 90 percent of the depositors in the sector are fully covered by the UGX 3,000,000 limit.
  • DPF creates confidence in the financial sector by ensuring that customers are paid their deposits in time in the event a contributing institution is closed.
  • Contributing institutions endeavor to put in place adequate risk management systems in order to avoid penalties levied by the DPF.


  • All types of deposits received by a contributing institution in the normal course of business are protected. These include savings, current accounts and fixed deposits.
  • It also includes foreign currency deposits though these will be converted to Uganda shillings using BoU determined closing exchange rate on the day the institution was closed.

Deposits above the insured limit will be paid by the liquidator after the assets of the closed institution have been sold off. The amount paid out will depend on the recoveries made.


As long as your deposits are with a contributing institution which is regulated by Bank of Uganda and the amount is within the current protected limit of three million shillings, they are protected.

No.  It is only contributing institutions that are required to pay money to the DPF.

According to the Financial Institutions Act, 2004 (as amended), depositors will be paid within ninety (90) days of closure of the contributing institution. DPF will nevertheless, ensure that depositors get their money earlier than the time period provided for in the law.


  • Currently it’s up to three million shillings per depositor per contributing institution. However efforts are underway by DPF to review this limit.
  • It should be noted that DPF determines the ‘protected deposit’ for payment purposes, by getting the total deposits of an individual in a particular contributing institution and deducting any liability of that individual to the institution.

No. Only those contributing institutions licensed and supervised by Bank of Uganda are members of the DPF.


  • All depositors of contributing institutions.
  • The coverage is per depositor per contributing institution.
  • Joint accounts holders are treated as separate persons for the purposes of payment of insured deposits.
  • The money received from contributing institutions is deposited in an account held at Bank of Uganda.
  • These monies are then invested in assets with minimal risks such as government of Uganda treasury bills and treasury bonds. Income from the investment is reinvested.
  • In the event of failure of a Contributing Institution, and subsequent receivership, a depositor of that Contributing Institution can lodge a claim with DPF. Claim forms will be readily available to the public.
  • If DPF ascertains that the affairs of a contributing institution are being conducted in a manner which is detrimental to the interests of depositors, it may, by notice, increase the contributions of that contributing institution beyond the annual contribution stated above.
  • The increased contributions are referred as Risk Adjusted Premiums. These are based on the quarterly ratings resulting from the BoU’s quarterly off-site financial analysis reports.
  • A Contributing institution whose overall performance shows an unsatisfactory or marginal rating shall be charged on a quarterly basis as follows:

 Marginal: additional charge of 0.1 percent of the average weighted deposit liabilities on top of the annual contribution.

 Unsatisfactory: additional charge of 0.2 percent of the average weighted deposit liabilities on top of the annual contribution

  • Annually, DPF serves contributing institutions with a notice specifying the expected annual premium amount and the period within which it should be paid.
  • The annual premium is at least 0.2 per cent of the average weighted deposit liabilities of the contributing institution over the previous financial year.
  • The DPF may from time to time vary the percentage.
  • The annual premium should be paid to the Fund in the period not more than twenty-one days after the date of service of the notice.
  • A contributing institution which for any reason fails to pay its premium to the Fund within the period of 21 days is liable to pay a civil penalty interest of one half per cent of the unpaid amount for every day outside the notice period on which the amount remains unpaid.


  • Annual Premium. All contributing institutions make an annual premium payment to the DPF.
  • Investment Income. The contributions are invested in risk free Government of Uganda treasury instruments and this helps to increase the fund size.


A contributing institution is one which is licensed by Bank of Uganda and periodically makes a financial contribution to the DPF.  These include: Commercial Contributing Institutions, Micro finance Deposit Taking Institutions and Credit Institutions.



  • To contribute to financial sector stability by ensuring that protected deposits are paid on time in the event of failure of a contributing institution, hence building public confidence in the financial sector.
  • To act as a receiver or liquidator of any closed contributing institution if appointed by Bank of Uganda.
  • To perform such other functions as may be conferred upon it by law.


The DPF is a legal entity created by the Government of Uganda to ensure that depositors are paid their protected deposits in the event of failure of a contributing institution.

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