The Uganda Revenue Authority (Uganda Revenue Authority) has officially moved to end its banking relationship with Stanbic Bank Uganda, marking a dramatic shift in one of the agency’s most important financial partnerships.
In a directive issued on June 4, 2026, Commissioner General John Musinguzi confirmed that all URA accounts held at Stanbic would be withdrawn and transferred to alternative commercial banks within the year.
URA justified the decision by citing concerns over tax compliance, governance standards, and transparency, arguing that institutions handling public funds must meet strict compliance expectations without exception.
The tax authority further noted that Stanbic Bank Uganda had enjoyed a long and highly beneficial relationship with URA over the years, particularly through its role in facilitating large-scale government revenue collection.
However, tensions escalated following an ongoing tax dispute between the two institutions involving an assessment of approximately Shs117.8 billion, which is currently being examined by the Tax Appeals Tribunal (Tax Appeals Tribunal).
The dispute centers on transfer pricing allegations, with URA claiming that certain intra-group transactions within Stanbic’s wider banking network may have reduced taxable income in Uganda.
Stanbic Bank Uganda has rejected the claims, insisting that all its transactions comply fully with international tax regulations and describing the matter as a routine disagreement rather than wrongdoing.
URA has indicated that its current tax collection agreement with the bank, which is set to expire on June 30, 2026, will only be extended temporarily for six months to ensure a smooth transition, and has instructed Stanbic to submit a formal handover plan within 14 days.
