Centenary Bank has expanded its financial services portfolio by entering Uganda’s custodial services market, targeting institutional investors, pension funds, and asset managers in a move expected to strengthen confidence and liquidity in the country’s capital markets.
The new offering will provide asset safekeeping, transaction settlement, and regulatory compliance support—core functions seen as critical to the growth of long-term investment structures.
Speaking at the launch, Bank of Uganda Governor Michael Atingi-Ego described the development as timely and strategic.
“Custodial services are the bedrock of trust in any financial system.They protect ownership, validate transactions, reduce risk, and sustain confidence across markets.”
He noted that Uganda’s institutional investment landscape is expanding rapidly, particularly within the retirement benefits sector, which currently manages an estimated shs13 trillion in assets.
“The importance of professional and well-governed custodial arrangements cannot be overstated,” he said, pointing to the continued growth of collective investment schemes and insurance funds.
According to the Governor, strengthening custodial frameworks will improve transparency, enforce asset segregation, and minimize operational risks across the financial system.
“They enhance transparency, ensure asset segregation, and reduce operational risks, ultimately strengthening financial stability.”
He added that the development could have far-reaching implications for the broader economy.
“Improved custodial infrastructure will help attract both domestic and international investment, deepen capital markets, and mobilize long-term financing for national development.”
Atingi-Ego said Uganda’s macroeconomic outlook remains stable, with growth projected at between 6.5% and 7%, supported by controlled inflation and strong foreign reserves.
“The economy remains resilient,” he said, noting that upcoming oil production is expected to further boost growth.
Despite this progress, he acknowledged structural gaps, especially in the pensions space.
“Challenges remain, particularly in the pension sector, where custodial services could unlock more efficient and secure investment.”
“This is more than a corporate milestone. It is a catalyst for Uganda’s broader economic transformation.”
Centenary Bank Managing Director Fabian Kasi positioned the launch as part of a broader strategic shift within the bank.
“It is a statement about how the bank sees its role in Uganda’s financial markets—as a partner in trust, governance, and long-term institutional growth,” he said.
Kasi emphasized that custodial services must evolve alongside the financial system.
“To redefine custody is to acknowledge that it can no longer remain in the background. As markets mature, custody must evolve from a back-office necessity into a strategic enabler of transparency, efficiency, and confidence.”
He highlighted the central role of trust in institutional investment decisions.
“Institutional investors operate on confidence—confidence in data, governance, systems, and processes. Custody sits at the centre of this trust architecture.”
Kasi added that robust infrastructure is essential for sustainable capital formation.
“Capital grows best where infrastructure is strong, assets are secure, reporting is accurate, compliance is embedded, and technology supports scale without compromising control.”
Centenary Bank enters the segment with assets exceeding shs8.6 trillion and a loan portfolio of more than shs4 trillion, serving over 300,000 enterprises nationwide.
“We bring a strong and resilient financial foundation, underpinned by disciplined risk management and sustained profitability,” he said.
He also underscored the importance of collaboration across the financial ecosystem.
“Custody does not function in isolation. It works best when banks, regulators, fund managers, trustees, and policymakers operate in alignment.”
