The Bank of Uganda (BoU) has issued a stern public warning against the misuse of Uganda Shilling banknotes, specifically targeting the growing trend of turning cash into decorative floral bouquets, money cakes as gift arrangements during celebrations.

In a statement released on 6th February 2026, at its headquarters in Kampala, the Central Bank cautioned florists, event designers, gifting stylists, and the general public against using brand-new banknotes that are glued, taped, stapled, pinned together or otherwise altered for decorative purposes.

“The public has been cautioned against any practice that mutilates, defaces, or compromises the integrity of Uganda Shilling currency,” the Bank stated.

The Bank of Uganda explained that such practices significantly damage banknotes, rendering them unfit for circulation and mechanical processing.

“This practice destroys the utility of banknotes, making them unusable in cash-processing and distribution equipment such as cash-counting machines and ATMs,” the statement noted.

BoU further warned that the trend carries a direct economic cost, as damaged notes must be withdrawn from circulation earlier than expected.

“It leads to premature withdrawal and replacement of banknotes at an avoidable cost to the public,” the Bank added.

While clarifying that it does not object to the giving of cash gifts, the Central Bank emphasized that such gifts must respect the intended function of currency.

“Cash gifts should conform to the normal use of currency to facilitate payment transactions, in order to preserve the Uganda Shilling’s role as a medium of exchange and a store of value,” the statement said.

Uganda’s action aligns with similar measures adopted by two neighboring countries. In the same week, the Central Bank of Kenya and the National Bank of Rwanda released parallel warnings, pointing to banknote damage and the costly early replacement of currency.

Both institutions also reminded the public that national laws penalize the defacement of currency.

The Bank of Uganda advised members of the public seeking clarification to contact its Director of Communications, reaffirming its commitment to curbing the trend and safeguarding the functional integrity of the national currency.

The warning serves as a reminder that while creative gifting trends may be popular, the protection of national currency remains a shared responsibility, and key to ensuring its durability, usability, and economic value.