Purpose - The purpose of the study is to examine knowledge management (KM) initiatives of financial institutions (FIs) in Uganda and their levels of performance, in order to understand what role KM plays in the creation of high performance financial institutions in Uganda. In this paper, our argument is that research needs to focus on the actual KM processes experienced by employees if we are to understand (1) how KM initiatives influence organisational outcomes and (2) the transition of an organisation to a high performance organisation (HPO). Research Approach - We carried out specific in-depth research; using interviews conducted at relatively more established and well organized financial institutions in Uganda. A qualitative research design was adopted to ensure uniformity and consistency of the data gathering and analysis processes. The Computer Aided Qualitative Data Analysis Software (CAQDAS) was selected for adequately handling the data. The N-vivo package served primarily as a support tool in: (1) managing the interview transcripts, (2) reflecting on the emerging themes, and (3) interpreting the body of evidence. Findings - We found that (1) the financial institutions (FIs) have different reasons for investing in KM, ranging from tapping into the competences of the employees, via reducing the costs of operations, to improving products and customer care. (2) the FIs seriously attempt to create increased value for their customers. (3) The improvements by the application of KM lead to new competences and help the FIs to transform into HPOs. (4) The research results also showed that the success of KM is not only dependent on the proper implementation of KM practices, but also on avoiding specific related to failures. (5) The FIs are actively involved in KM to a high/very high extent. Most (82%) acknowledge that they use a knowledge-based approach to help their institutions prepare for the challenges they face. Originality - So far, the relation between KM and HPO has not been extensively investigated, and certainly not for FIs in developing countries. This paper contributes to: (1) the theory of KM as applied in developing countries; (2) the practical orientation of FIs; (3) the formulation of recommendations for the managers of organisations; as well as (4) more effective ways of helping FIs on how to use KM in the transition to HPO. Practical implications - The research results offer the management of FIs in Uganda (and potentially managers of other institutions in other developing countries) to use a HPO framework which may assist them to transferring their organisations into an HPO by using KM.