Cybersecurity Challenges and Mitigation Strategies in East African Financial Systems: A Ugandan Perspective

Cybersecurity threats have become a critical concern for financial systems in East Africa, including Uganda. The increasing reliance on digital finance services has heightened the risk of cyber-attacks and data breaches. A mixed-methods approach was employed, combining quantitative surveys with qualitative interviews. Data were collected from a sample of 150 financial service providers across Uganda. Analysis revealed that the most frequent cybersecurity threat is unauthorized access (64%), followed by malware infections (32%). The findings underscore the need for robust security protocols and continuous training for employees to mitigate risks effectively. Ugandan financial institutions are advised to implement multi-factor authentication, strengthen data encryption standards, and conduct regular cybersecurity assessments. Cybersecurity, East Africa, Financial Institutions, Uganda, Mitigation Strategies Model estimation used $\hat{\theta}=argmin_{\theta}\sum_i\ell(y_i,f_\theta(x_i))+\lambda\lVert\theta\rVert_2^2$, with performance evaluated using out-of-sample error.