By Moses Kaketo
Pride Microfinance Limited, which is now Pride Bank, was on “fire” approximately ten years ago. With a dominant market share, the financial institution dominated Uganda’s microfinance industry. In addition to upending the sector, the innovations launched by the institution pose an equal threat to her colleagues and the big boys.
Pride Mobile’s youthful, creative, and aggressive staff helped the institution grow rapidly. Pride was the first to introduce fingerprint verification and group loans/lending. For instance, Pride Mobile made it possible for users to transact anywhere, at any time. Then, abruptly, the once-active, combative organisation fell silent. diminished market share, etc. Large-scale fraud and billions of shillings lost were the sole reasons it made the news. The norm was internal fraud, particularly cooperation. Fraudulent loans, asset theft, cyber fraud, and deposit slip frauds were among the frequent fraud incidents.
The once vibrant brand lost it. Some of her best talents quit, including those behind great innovations.
The financial institution was essentially inert for a long time. Most of her branches appeared deserted and lost customers. Only recently, when the government-owned institution changed its name to Pride Bank, Tier II, did I learn about it once more.
Speaking at a ceremony to mark the transition to a bank, Fred Omach, the board chairman, said, “This is not merely a name change or a cosmetic rebranding. It marks a strategic repositioning, from serving the grassroots to now offering a broad range of competitive schemes, while still holding on to our core mission—financial inclusion.“
Analysts and insiders, however, dispute the board chairman’s assertions, arguing that this was only a name change or cosmetic rebranding. They also add that the transformation was motivated by a number of factors, including the fierce rivalry in the microfinance sector, where Pride had lost to rivals.
“Whether it is a decision to grow or a strategy to consolidate, changing tiers in Uganda’s financial landscape is a deliberate business move, not a regulatory push,” said Kenneth Egesa, Director of Communications at the Bank of Uganda.
We understand the industry had become hot. In fact, too hot for Pride.
Even their newfound love’s bank status isn’t any better. For now, the winners are the< the consultant behind the deal, people behind the process (rebranding comes with a lot of money involved), and the CVs of bosses get a boost—“I “transformed microfinance into a bank.
Fraud, loss of billions.
At Pride, fraud was a frequent occurrence not long ago. That happened almost two years ago in May 2023. The hackers took roughly UGX 1.3 billion with them. In a different occurrence, the bad actors gained access to one of her Kampala branches’ vaults and stole an estimated 700 million UGX worth of foreign currency.
Financial institutions employ bank vaults, which are secure spaces, to keep and safeguard cash, valuables, and critical papers. These instances might just be the beginning. What about the events that are not covered by the media? A name change or cosmetic rebranding could help the brand, which was in poor shape.
Hit from all sides
It is also true that the financial institution had been encircled, threatened, and abandoned. Her market share had been eaten into, leaving her with so little. The aggressive entrants were also coming for the balance. According to the microfinance regulator, there are over 50 registered SACCOs, 4 registered microfinance institutions, over 150 non-deposit-taking institutions, etc.
Nearly every month, a new aggressive microfinance, SACCO, or money lender is joining the industry, some accepting as low as UGX 2000 per day. These new entrants have invested in technology—their mobile devices are linked. They issue receipts immediately upon registering a deposit.
They work 24/7. Their staff are everywhere, in all markets, at boda boda stages, on the streets, etc.
Meanwhile, Pride was waiting for the same customers at their over 40 branches from 8:30 to 4:30 pm. Monday to Saturday and closed on Sunday, not aware that the customers they are waiting for have already been served.
No wonder more and more branches were posting losses. Pride’s market share was eaten in. Something had to be done: run for dear life, read, and turn into a bank.
Cash cow, group loan—no more.
Group lending, also known as group loans, was once a cash cow for Pride, bringing in millions. Not anymore. Ugandans no longer borrow in groups. Otherwise, when one person in the group fails to pay, all members are affected. Several customers exited the product, which reduced the profitability of the institution. The model meant joint liability, weekly repayment meetings, compulsory savings, and collateral substitutes. These mechanisms had challenges (including paying loan installments for defaulting members, high interest rates, excessive group pressures, time-consuming weekly repayment meetings, nonparticipation of Pride staff in recovery of loans, and, more so, inadequate loan amounts), which led to attrition of clients. You guessed right: what happens when a cash cow dies?
More branches posting losses
As more and more talented staff left , cash cow Group loans falling apart, And the rampant fraud, more and more customers also started the exodus journey.
As a result, an increasing number of Pride branches began to report losses. More than half of her over 40 branches were really reporting losses, according to reports (this is still the case as of June 2025). This does not represent a robust organisation. The cosmetic rebranding was timely, it’s true. I hope the employees that were taken from Centenary Bank and BRAC will aid in the bank’s turnaround. Pride has one contact office, four enhanced contact offices, and forty-two branches nationwide.
No innovations
One might be right to say. The term product innovation had been scrapped off in Pride’s books. Pride has for the last ten years not introduced any new product- Pride mobile, and Group loans could have been their last. Never mind, we are in competitive market and customers move on easily. Customer loyatly in uganda is very poor. With no technology to talk about, Pride’s customers still walk into the bank, while customers of other financial institutions walk with their bank. They are able to transact 24/7. It is also true, majority Pride branches do not have ATM machines ( as of July 2025) now you know why most branches are posting losses, the Financial institution was still in the analogy.
Leadership at Pride: No change 10+ years later
Pride’s Veronicah Gladys Namagembe has been MD for over 20 years. The board chairman Fred Omach has held the position for over eight years, while Executive Director has served in this capacity for over ten years. Reminds of presidents Museveni’s book, What is Africa’s biggest problem, Leaders who overstay.
At what point should leaders say enough is enough and give a chance to others to give it a try? Even the best dancer leave the floor, maybe Pride would be a commercial bank competing with likes of Absa, Stanbic? if there was leadership changes earlier. Do the current leadership still have what it takes to stir the bank to the next level? Time will tell
The good
On a positive note, the development- upgrading to Tier 11, means Pride can now freely and easily hire the best talents in the banking industry. Since staff are readily available andc already vetted by the regulator- bank of Uganda. However, to attract the best you need to pay them handsomely and also be able to retain them.
Yes, capital is not their challenge they can easily be capitalised by the government, as promised yesterday Finance Minister Matia Kasaija, but if fraud is not checked, no clear strategy to grow the business, this capital can easily be wiped out in a few years.
Equity Bank, Finance Trust Bank, Opportunity Bank, and BRAC are among the banks that have already made the switch from microfinance to banking. But since making the switch in 2019, BRAC Uganda has continued to struggle, with its profit dropping from a peak of 20 billion to UGX 2 billion. Additionally, Opportunity Bank received a demotion to Tier 11. It is stated that Finance Trust Bank’s success is just coincidental. At one point, the Nigerian bank Access Bank saved the bank from demotion after it was suffering. The bank presents itself as a women’s bank yet offers nothing specifically for women, and it lacks a defined clientele focus and a niche market.
Right now, Pride, we hear the noise on the radio, TV, and other media. However, the issue still stands: what is the actual situation on the ground?
The writer is a content creator, marketing, and distribution expert. He can be reached via WhatsApp at +256782507579.