Residents in Busia District, Uganda, are now crossing into Busia County, Kenya, to withdraw cash from their mobile money accounts. This workaround has emerged because the Ugandan government restricted cash withdrawals from mobile money platforms starting January 14, 2026. The restrictions remain in place even though presidential and parliamentary elections have concluded.
The government shut down parts of the internet and blocked cash-out services while still allowing users to send money. As a result, most mobile money agent outlets across Uganda—including in Busia—have closed. People can deposit and transfer funds, but they cannot access physical cash. This has created serious hardship for households that rely on mobile money for daily needs.
To cope, many residents now send money from their Ugandan MTN or Airtel accounts to Kenyan mobile wallets like M-Pesa or Airtel Kenya. They then travel across the border, withdraw Kenyan shillings, and exchange them back into Ugandan shillings. Surprisingly, this method costs less than withdrawing locally would. Transaction fees in Kenya are lower, and the final amount received is nearly equivalent to what they sent.
“Mobile money businesses are not working,” said Hamphrance Abangi, an internet café operator in Busia. “Uganda is not for the weak or strong—but for the wise.” He explained that he helps clients by receiving their transfers into his Kenyan-linked account and withdrawing the cash for them in Kenya. His actions highlight how communities adapt when formal systems fail.
However, not everyone can navigate this workaround. Mangeni Wacha, chairperson of Solo Village, said ordinary people without cross-border connections suffer deeply. “Many have relatives who send support through mobile money,” he said. “Imagine having a sick relative but no way to get the cash you need. The government should lift these restrictions—the elections are over.”
Others echo this plea. Francis Wanyama from Busia said life has become harder and called on authorities to restore normal services. Meanwhile, mobile money agents face steep losses. Lyaka Hellen, an agent on Majanji Road, reported losing 20,000 Ugandan shillings in daily commissions. “I’m only selling airtime now,” she said. “Withdrawal commissions were my main income. Our lives have been severely affected.”
Nationwide, users report being unable to pay for emergencies like medical bills. This is especially troubling because mobile money has long driven financial inclusion in Uganda. Tens of millions of people—especially in rural areas—depend on it for banking, savings, and remittances. Most transactions are small but vital for daily survival.
Officials say the mobile money restrictions Uganda imposed aimed to curb misinformation, fraud, and electoral violence. Yet human rights groups warn that such measures block access to essential services. Experts add that sudden shutdowns damage trust in digital finance. When users cannot access cash, they turn to riskier alternatives—like cross-border withdrawals—which carry extra costs and safety concerns.
The ripple effects are widespread. Households delay payments. Small businesses lose liquidity. Local micro-economies stall as agent commissions vanish. Even creative solutions—like traveling to Kenya—come with time, transport, and exchange-rate costs. These burdens fall hardest on the poor.
Ultimately, the crisis reveals a paradox: digital finance is both resilient and fragile. Systems keep running, but without cash access, they lose real-world utility. As one resident put it, “You can send money, but you can’t feed your child with a balance.” Until the government lifts the mobile money restrictions Uganda, many will continue relying on ingenuity—and long walks across borders—to survive.
