Title: Internal Control and Performance of Commercial Banks in Kampala, Uganda: A Case Study of UBA Bank, Kansanga-Kampala, Uganda
Author(s): Kyampeire Scovia
Year 2024
File: PDF

This study explores the relationship between internal control mechanisms and the performance of commercial
banks, focusing on UBA Bank located in Kansanga-Kampala, Uganda. The effectiveness of internal control
systems is crucial for ensuring the stability and success of financial institutions, particularly in emerging
economies like Uganda. By employing a case study methodology, data was collected through interviews,
questionnaires, and document analysis to investigate the internal control practices implemented by UBA Bank
and their impact on its performance indicators. The findings reveal a significant correlation between the
strength of internal control measures and the financial performance of UBA Bank in Kampala. Through
rigorous internal auditing, risk management, and compliance procedures, the bank has managed to mitigate
operational risks, enhance transparency, and improve overall performance metrics such as profitability, asset
quality, and operational efficiency. Moreover, the study identifies specific challenges and opportunities faced
by UBA Bank in implementing effective internal control mechanisms within the unique context of the
Ugandan banking sector. The study contributes to the existing literature by providing empirical insights into
the role of internal control in shaping the performance of commercial banks in Uganda, particularly within the
dynamic environment of Kampala. The findings underscore the importance of continuous evaluation and
enhancement of internal control systems to adapt to evolving regulatory frameworks and emerging risks.
Additionally, the study offers practical recommendations for UBA Bank and other commercial banks in
Kampala to strengthen their internal control mechanisms and optimize performance outcomes in the
competitive banking landscape of Uganda.
Keywords: Commercial banks, UBA Bank, Ka