- He accuses BOU of failing to consult the public on the matter.
- Mabirizi says the Country is just recovering from two Lock downs.
City Lawyer Hassan Male Mabirizi Kiwanuka has written to Finance Minister with a copy to Bank of Uganda & Uganda Bankers Association Objecting to what he has termed as the Irrational increase in minimum capital requirements for Financial Institutions for up to over 1000%.
In his letter dated 26th August 2921, Mabirizi cites lack of public participation of the relevant authorities and further accuses Bank of Uganda of wanting to copy from regional countries without considering the peculiar circumstances of Uganda.
Mabirizi is accussing Bank of Ugand of solely reliying on already registered Institutions which may not want new competitors instead of the general public who may want to start financial institutions.He has asked the minister not to sign any instrument to that effect.
Despite suffering two Lockdowns and a slump in Economic activities between 2020-2021,it is public knowledge that Bank of Uganda is having proposals to irrationally increase minimum paid up capital requirements for Commercial Banks by 500% from 25bn shillings to 125bn shilings, that of credit Institutions by 250% from 1 bn to 25 bn and that for microfinance deposit taking institutions bu over 100% from 500m to 10bn.Lawyer Mabirizi
Mabirizi adds that Bank of Uganda is further confused by regional comparisons, yet Uganda has a unique economy which expelled foreign investors in 1972, experienced several wars among other challenges.
according to Mabirizi, the Economy is just recovering from two Lockdowns, and that it would by unfair to increase the minimum Capital requirements for banks to run their business.