BUSIA.A section of residents in the border district of Busia have resorted to crossing into Busia County in neigbouring Kenya, to withdraw money from their mobile money accounts due to restrictions on cash withdrawals in Uganda.
The decision follows government-imposed internet shutdown and restrictions on cash withdrawals from mobile money accounts, while sending money is still allowed.
The restrictions, which started on January 14, 2026, ahead of the presidential and parliamentary elections, have not yet been lifted. Currently, most mobile money outlets managed by agents in the district and other parts of Uganda are closed.
Residents at the Busia border are now sending their funds from Ugandan MTN and Airtel accounts to Kenyan mobile money wallets, withdrawing Kenyan shillings, and then exchanging them back into Ugandan shillings.
They say this does not affect them significantly because transaction charges in Kenya are lower than in Uganda, and the money they receive is equivalent to the amount deposited in their accounts.
“Mobile money businesses are not working. As you are aware, Uganda is not for the weak or strong but for the wise. For us to survive, some people have been transferring their mobile money to Safaricom, then travelling to Kenya to withdraw it. If you have Airtel Money, transfer it to Airtel Kenya and withdraw it from agents in Kenya. The rates are cheap,” said Mr Hamphrance Abangi, an internet café operator in Busia.
He said he allows clients to send money through his account, then crosses into Kenya to withdraw, helping them navigate the restrictions.
The Solo Village chairperson, Mangeni Wacha, explained that restrictions on mobile money transactions have affected many people, making it difficult to support sick relatives or meet urgent household needs.
“In my village, the ordinary people who are unable to maneovre around the restrictions are suffering a lot. Many of them have relatives who wire support through mobile money. Imagine having a sick relative but the only support you can get is through mobile money. They should lift the restrictions since elections are done,” he said.
Mr Francis Wanyama from Busia said life has become harder due to withdrawal restrictions and appealed to the government to lift them, as elections for major posts have concluded.
Lyaka Hellen, a mobile money agent, Majanji Road, Busia town, reported losing Shs20,000 daily in commissions she used to earn before the restrictions. She added that the alternative of residents withdrawing money in Kenya has caused Ugandan agents significant losses.
“The government should lift the restrictions. I’m only selling airtime because withdrawals are restricted. Customers who want to deposit are very few. I have been surviving on withdrawal commissions. The lives of mobile money agents at the border have been significantly affected,” she said.
There is a country-wide outcry by the mobile money clients that they cannot withdraw cash from the agents. Some mobile money users have indicated that they are unable to settle payments even for emergencies like medical bills.
Mobile money has been a key driver of financial inclusion in Uganda, allowing millions of people, particularly in rural areas, to access banking services, send money, and save. In Uganda, active mobile money accounts number in the tens of millions, with low-value daily transactions dominating the system. Government restrictions ahead of elections are intended to prevent misinformation, fraud, and electoral violence.
However, human rights groups warn that such shutdowns can undermine access to essential services, including financial services. Experts note that while digital finance is resilient, sudden restrictions erode trust in mobile platforms and push users toward alternative, sometimes riskier solutions, like cross-border withdrawals.
The impact is felt across households, businesses, and micro-economies. Mobile money agents lose vital commissions, residents face additional travel costs, and communities experience delays in receiving funds.
The consequences extend beyond personal inconvenience. When agents close up shop and daily commissions vanish, local micro‑economies suffer, and households lose critical buffers against shocks. The travel to Kenya to access funds, while creative, underscores how digital systems can be resilient yet fragile in times of crisis.