Mobile money adoption has been on a steady rise over the past few years, and it’s clear from how many Ugandans use it for daily transactions. Add in the introduction of MOMO and Airtel Pay, and you have got yourself a complete cashless mode of transacting. But aside from the users, the number of mobile money agents has also grown rapidly, a much-needed growth to feed the growing adoption. In fact, for many Ugandan youths looking to start a side hustle, setting up a mobile money kiosk has become one of those options. We even looked into this in our earlier guide on how to start a mobile money business in Uganda. That said, digital money services by telecom companies can be, and has been, a dangerous game. In past articles, we unpacked common fraud tricks used by bafere (conmen) and how businesses can obtain merchant codes to receive mobile money payments. But today, we’re more focused on the agents themselves. What struggles do they face behind the counter? What’s the other side of this story that many of us customers never get to see?
Today, we are talking about the grievances and challenges mobile money agents in Uganda deal with every day, the negatives and lows of running one of the country’s most popular small businesses. And if you know an agent, or are one yourself, this is definitely for you.
#1. Network & System Downtime
One of the biggest frustrations agents raise is the frequent downtime of mobile money systems. Imagine being in the middle of a busy day with a line of customers, only for the system to suddenly fail. Transactions stall, clients get impatient, and some even accuse the mobile money agent of foul play when the funds take long to reflect.
Research shows that 92% of agents in Uganda have experienced system downtime, and less than half ever get prior warning. Even when warnings are issued, they’re often inaccurate. This leaves agents exposed, helpless, and sometimes dealing with angry customers who think they’re deliberately stalling.
#2. The Constant Battle of Liquidity (Float)
Another headache is float management; balancing cash on hand and e-money. As we shared in our guide on how to start a mobile money business in Uganda, an agent’s ability to manage their working capital can make or break them. Too much of one and not enough of the other means lost business. For instance, a customer wanting to withdraw cash can be turned away because the agent has insufficient funds, while another who wants to deposit may be stuck because the agent’s e-wallet is empty.
Float challenges are worse in rural areas where agents travel long distances to rebalance. And, as you can imagine, this cost and time of rebalancing eats into profits. Many agents complain that telecom providers don’t do enough to anticipate or support their liquidity needs.
#3. Fraud, Scams & Security Threats
Fraud is probably the scariest part of being a mobile money agent in Uganda. From fake SMS confirmations to customers who “accidentally” give the wrong number, to insider scams where even telecom employees collude, agents face it all.
Studies show that over half of agents in Uganda (53%) have been victims of fraud. And with limited refresher training and poor supervision from providers/master agents, many feel abandoned to figure things out on their own.
Then there’s physical security. Mobile money kiosks are attractive targets for robbers, which isn’t all that surprising considering how much some of these agents hold in cash by the end of the day. Armed attacks and follow-home robberies have been on the rise, with agents reporting losses in the millions of shillings, if not their lives as well. In 2024, a mobile money agent on Bishop Tucker Road, well known by UCU students for reliable service, was brutally attacked one evening on her way home, an assault that nearly claimed her life and left her in a dire state.
#4. Taxes & Shrinking Commissions
Running a mobile money kiosk isn’t exactly cheap; space rent, investment in phones and not to mention the working capital requirements. Unfortunately, for many agents, the profits from the business are getting slimmer. The government’s introduction of mobile money transaction taxes has heavily squeezed both customers and agents, with many users reducing their transaction volumes, directly affecting agents’ daily earnings.
On top of that, commissions from telecoms are not always clear or consistent, and agents often complain that they’re too low to justify the high startup costs and daily risks of the business. Some agents who used to handle 30–50 customers a day now serve barely half because customers are not willing to have much of their money chopped off in taxes/fees with multiple transactions.
#5. Regulatory Headaches (The ID Rule)
If you have tried moving some bulk cash above UGX. 1 million via mobile money, then you have definitely had some issue at the kiosk one way or he other.
A recent Bank of Uganda directive requires all transactions of UGX 1 million and above to be accompanied by a valid National ID. On paper, this sounds good for accountability. But on the ground, it’s a nightmare.
Many customers either don’t have National IDs, their SIM cards aren’t registered in their own names, or they just forget the ID altogether, only to endure delays in the transaction. Agents are now forced to keep manual logbooks or invest in biometric systems that are far too expensive. For rural kiosks, this feels like an impossible expectation and risks pushing customers away.
#6. Customer Complaints & Mistakes
Sometimes, it’s not even the agent’s fault. Customers make mistakes; sending money to the wrong number, confusing deposits with airtime purchases, or even forgetting PINs. When this happens, the burden often falls on the agent to explain, mediate, or even absorb the blame.
Reversals, especially for airtime, can take days or never happen. Customers leave frustrated, and agents bear the brunt of the complaints even when the customer is at fault.
#7. Poor Support from Providers
Despite being the backbone of the mobile money ecosystem, mobile money agents frequently feel neglected by the telecoms they serve. Over half of Ugandan agents have never received refresher training, and only a third report ever getting in-person visits from their provider.
When issues like fraud, downtime, or customer complaints arise, support lines are slow or unhelpful, leaving agents exposed. This lack of support adds to the feeling that agents are “on their own.”
#8. Weak Dispute Resolution & Redress
When money goes missing, recovery is often a dead end. Studies show that 61% of mobile money users who experience a problem never take action because they don’t believe it will be resolved. Of those who do file a complaint, their losses are quite big to justify their trouble, and even then, less than half see it successfully resolved.
For agents, even small unresolved losses, like 20,000 or 50,000 shillings, can eat into daily profits. With courts too expensive and slow, and providers slow to act, many agents simply absorb the loss and move on.
Just recently, a wave of public dissatisfaction boiled over on social media when Dr. Jimmy Spire Ssentongo launched the #StopAirtelTheft campaign. This followed the incident where his brother’s Airtel Money account was emptied, despite no saved credentials or PIN on the stolen phone, and a loan was processed illicitly in his name. The campaign unearthed countless others with unresolved or mishandled Airtel fraud cases, many becoming communal online posts demanding refunds and reforms. – John Spire Ssentongo Shakes Airtel Uganda with #StopAirtelTheft Campaign, NymyNet
But then again, while challenges are there, and have always been, Mobile money has transformed Uganda’s financial standing, especially when it comes to digital/cashless finance, giving millions access to convenient transactions and fuelling many small businesses. In fact, Mobile money ranks in the Top 5 Digital payment Systems in Uganda. Thus, telecom providers, regulators, and government stakeholders should recognise these struggles, not just to protect agents, but to strengthen the entire mobile money ecosystem. After all, without the agents, there is no mobile money…yet I still need it to send Jaja the occasional kilo of sugar.
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