The verdict in three sentences
In Uganda, MTN MoMo (code *165#) and Airtel Money (code *185#) capture most mobile payments in UGX. Merchant collection runs 0.5 % to 2 % plus a government levy, with a daily limit of UGX 7M at advanced tiers. USSD success sits between 85 % and 92 %, making a retry logic essential to avoid losing sales.
Fee grid by operator in Uganda
2026 orders of magnitude (UGX), excluding API subscription.
| Operation | MTN MoMo | Airtel Money |
|---|---|---|
| Merchant collection | 0.5 % to 2 % | 0.5 % to 2 % |
| Cash withdrawal | 1 % to 3 % | 1 % to 3 % |
| P2P transfer | 0.5 % to 2 % + levy | 0.5 % to 2 % + levy |
| USSD code | *165# | *185# |
| Daily limit (advanced) | UGX 7M | UGX 7M |
| USSD success rate | 85 % to 92 % | 85 % to 92 % |
Uganda (UGX) vs Cameroon (XAF): two logics
Comparing the Ugandan market with Cameroon's CEMAC zone situates the parameters for cross-border work.
| Parameter | Uganda (UGX) | Cameroon (XAF) |
|---|---|---|
| Dominant operators | MTN, Airtel | MTN MoMo, Orange |
| Merchant fee | 0.5 % to 2 % + levy | 1 % to 2 % |
| USSD codes | *165# / *185# | *126# / #150# |
| Daily limit | UGX 7M | ~2,000,000 XAF |
| KYC tiers | 3 levels | 3 levels |
| Government tax | Transaction levy | Variable |
Mini case study
Roland, a restaurateur in Kampala, collects UGX 25M/month in tickets of 8,000 UGX. At 1.5 % merchant collection plus levy, his monthly fees run near UGX 375,000. By tuning his checkout to favour merchant payment rather than costly customer withdrawals (up to 3 %), he avoids pushing fees onto customers and improves till conversion.
FAQ
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MTN or Airtel: which to prioritise in Uganda?
Both are essential and their grids are close (0.5-2 % merchant). Offer both at checkout to cover the whole base and cut abandonment.
Is the UGX 7M daily limit enough?
For most SMEs, yes. It reflects the advanced tier; enhanced KYC raises it based on merchant volume.
Why isn't USSD success 100 %?
Network drops, insufficient balance and USSD timeouts explain the 8-15 % of failures. Automatic retries recover part of them.
Does the government levy change my pricing?
Yes, factor the transaction tax into your display price so margins stay predictable across baskets.
Can I handle Uganda and Cameroon in one checkout?
Yes, via a multi-country aggregator that routes each transaction to the right operator by country and currency (UGX or XAF).
Let's talk about your project. We configure MTN MoMo and Airtel in Uganda with built-in USSD retry. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.