Centenary Bank Launches Custodial Services, Aims to Deepen Uganda's Financial Markets

Key facts

• Centenary Bank launched custodial services on May 5, 2026.
• The bank's total assets exceed Shs 8.6 trillion.
• Uganda's retirement benefits sector manages over Shs 30 trillion in assets.
• Over 80 percent of investments in Uganda are concentrated in government securities.
• Centenary Bank serves more than 300,000 enterprises.
• The bank has a customer base of 3.4 million people.
• Centenary Bank is the seventh institution to offer custodial services in Uganda.

A New Era for Uganda's Financial Landscape

Centenary Bank has officially entered the custodial services arena, marking a significant development in Uganda's financial sector. The launch, which took place on Tuesday, May 5, 2026, at Mestil Hotel in Kampala, positions the bank as the seventh institution to offer such specialized services in the country. This move is anticipated to bolster investor confidence and strengthen the nation's financial market infrastructure, a critical component for sustained economic growth. The introduction of CenteCustody Services arrives at a time when Uganda's retirement benefits sector alone oversees an estimated Shs 30 trillion in assets. However, the infrastructure for safeguarding these funds has historically been underdeveloped and concentrated among a few players. Centenary Bank's entry, with its substantial total assets exceeding Shs 8.6 trillion and a loan book of over Shs 4 trillion, signals a potential shift towards greater accessibility and robustness in asset management. Bank of Uganda Governor Michael Atingi-Ego lauded the initiative, describing it as a "landmark moment" for Uganda's financial system. He emphasized that the strength and credibility of financial institutions and their supporting systems are paramount for economic progress. Custodial services, he noted, are fundamental to protecting ownership, validating transactions, reducing risk, and fostering market confidence.

Addressing Gaps and Fostering Trust

Governor Atingi-Ego highlighted persistent gaps within the financial system, particularly concerning the pension sector. He pointed out that over 80 percent of investments remain concentrated in government securities, a situation that constrains the diversification necessary for mature capital markets. Custodial services, he explained, are built on the bedrock of trust, which is essential for the efficient functioning of markets. Transparency, accountability, and investor protection are thus central to building confidence among both local and institutional investors. The new service aims to provide clients with a unified platform to hold and manage a diverse range of financial assets. This includes government securities, equities, retirement assets, collective investment schemes, and corporate instruments. By offering a comprehensive solution, Centenary Bank seeks to meet evolving investor needs and support long-term financial planning requirements. Ms Linda Daisy Nabakooza, Chief Manager at the Uganda Retirement Benefits Regulatory Authority, urged Centenary Bank to leverage its extensive customer base of 3.4 million. Her call was for the bank to extend retirement coverage beyond urban centres, reaching underserved populations such as rural farmers. She stressed that governance is the cornerstone of the entire ecosystem, and any lapse directly impacts the ordinary Ugandan saving for their future.

A Promise for Future Generations

Fabian Kasi, Managing Director of Centenary Bank, framed the launch as "more than a launch; it’s a promise for the future." He articulated that the bank is building a system designed to support investors, institutions, and future generations in securely holding and growing wealth. This initiative reinforces the bank's broader commitment to supporting governance structures, deepening financial markets, and cultivating a culture of long-term savings. Benoni Okwenje, the bank's General Manager for Financial Markets, elaborated on the essential role of custody services in strengthening market systems and broadening participation. "It’s about trust, access, and unlocking opportunity for everyone," he stated. When investors are assured that their assets are held securely, managed transparently, and reported accurately, they become more inclined to engage with formal financial markets. Mr Okwenje further noted that Centenary Bank's nationwide presence is a key asset in extending custody services beyond metropolitan areas. This reach will facilitate easier access and onboarding for institutional investors across the country into formal investment systems. He reiterated the indispensable need for robust regulatory and governance frameworks to ensure transparency, asset protection, and reliable reporting.

Regulatory Imperatives and Market Evolution

The launch of CenteCustody Services aligns with a broader push within Uganda's financial sector to deepen capital markets, enhance institutional trust, and expand access to structured investment products. The shift from manual to automated custody systems has already demonstrated significant improvements in risk management and innovation for institutions that adopted them early, General Manager at Sanlam Allianz. Mr Musa Ssebufu from the Insurance Regulatory Authority underscored the growing importance of custodial services, noting that they are increasingly becoming mandatory. Insurance firms offering guaranteed funds, for instance, are now required to adopt custodial services underpinned by the pillars of trust, transparency, accountability, and customer protection. This regulatory push underscores the evolving standards for safeguarding financial assets. Mr Mugalya also described the move to automated systems as a "regulatory requirement and a strategic enabler for growth and product innovation." This suggests that embracing modern custody solutions is not merely a compliance matter but also a strategic imperative for financial institutions seeking to expand their offerings and operational efficiency in an increasingly sophisticated market.

Expanding Reach and Empowering Investors

Centenary Bank's extensive network, supporting over 300,000 enterprises, provides a unique advantage in extending the reach of custodial services. By making these services more accessible to institutional investors nationwide, the bank aims to democratize access to formal investment systems. This expansion is crucial for unlocking opportunities for a wider segment of the market. The emphasis on trust, transparency, and accountability by regulatory bodies and bank officials alike signals a concerted effort to build a more reliable financial ecosystem. As Governor Atingi-Ego pointed out, sustained economic growth is intrinsically linked to the reliability and credibility of the financial institutions and systems that underpin it. The introduction of these services is expected to encourage long-term savings by enabling secure investment in instruments such as government bonds and equities. This, in turn, contributes to the deepening of capital markets and the overall financial health of the nation.

The bottom line

• Centenary Bank's launch of custodial services aims to enhance Uganda's financial market infrastructure.
• The move is expected to boost investor confidence and broaden access to financial instruments.
• Regulators highlight the need for diversification beyond government securities and improved governance.
• Centenary Bank plans to leverage its large customer base to extend services to rural and underserved areas.
• Custodial services are increasingly becoming a regulatory requirement, especially for insurance firms.
• The initiative supports the broader goal of deepening capital markets and fostering long-term savings in Uganda.