Uganda regulator hands relief to Kenyan lenders

DTB-UGANDA

DTB Centre, Home to DTB Bank, Uganda in Kampala. PHOTO | MORGAN MBABAZI | NMG

Uganda’s central bank has said foreign-based commercial banks do not need its approval to lend funds originating abroad, bringing relief to Kenyan banks that had been rattled by a court ruling last week that declared some syndicated loans illegal.

The Bank of Uganda said it did not regulate lending that involved “using funds obtained from foreign banks that do not take deposits from the public in Uganda.”