Uganda’s mobile money industry maintained strong expansion in the first quarter of 2026, reinforcing its position as a key driver of financial inclusion and digital economic activity, even as the broader telecommunications sector recorded a moderate decline in revenues, reports Pedson Mumbere.
New figures from the Uganda Communications Commission (UCC), based on Bank of Uganda data, show that active mobile money subscribers defined as users engaged within a 90-day period rose to 36.7 million, up from 36.3 million at the close of 2025.
The steady growth signals deepening reliance on mobile-based financial services, which continue to play a central role in payments, savings, and peer-to-peer transfers across both urban and rural markets.
However, the telecom industry experienced a contraction in earnings during the same period. Gross sector revenue declined to UGX1.60 trillion in the January–March 2026 quarter, down from UGX1.66 trillion in the previous quarter.
Industry analysts attribute the decline to seasonal spending patterns following the festive peak in Q4, as well as temporary disruptions in internet connectivity and phased restoration of services around the January 2026 General elections, which affected data consumption and digital commercial activity.
Despite the revenue dip, the mobile money ecosystem continued to demonstrate resilience and scale.
Total registered mobile money accounts including inactive users rose sharply to 58.7 million, up from 53.6 million, highlighting sustained onboarding of previously unbanked populations into formal financial systems.
The sector also benefited from continued expansion in digital infrastructure.
Uganda’s national fibre-optic backbone grew to 71,740 kilometres during the quarter, further strengthening connectivity, network capacity, and service reliability across the country.
Key indicators from the quarter underline the sector’s dual trajectory of user growth and revenue pressure.
Active mobile money users reached 36.7 million, while active smartphone connections rose to 20.3 million, up from 20 million in the previous quarter.
At the same time, gross telecom revenue declined to UGX1.60 trillion from UGX1.66 trillion.
Transaction volumes also moderated slightly, with mobile money platforms processing 2.37 billion transactions, compared to 2.48 billion in Q4 2025.
Nevertheless, usage levels remained high, reflecting continued integration of mobile money into daily commerce and household financial activity.
Voice services retained strong traction, with domestic on-net traffic reaching 20.9 billion call minutes over the quarter, underscoring the continued relevance of traditional voice communication alongside digital services.
Internet consumption remained robust despite election-related disruptions, with public data download traffic reaching 256.8 million gigabytes.
On average, active mobile users consumed approximately 3GB of data per month, reflecting growing reliance on streaming, social media, and digital business platforms.
Mobile money usage patterns also showed consistent activity, with the average user conducting around two peer-to-peer transactions per month, each valued at approximately UGX100,690.
Market observers anticipate a rebound in telecom revenues in the second quarter of 2026, supported by improved political stability, continued smartphone affordability, and ongoing policy discussions around sector taxation and digital economy regulation between government and industry stakeholders.
