The State Minister for Microfinance, Mr. Haruna Kyeyune Kasolo, has lifted the general ban on money lenders and imposed it on online lenders during a Tuesday dialogue organized by the Uganda Microfinance Regulatory Authority (UMRA) at Hotel Africana in Kampala. Kasolo called on money lenders to operate within the law.
In December 2023, Mr. Kasolo temporarily halted the issuance of licenses to money lenders due to concerns over unfair policies.
The Minister cited the influx of unregulated online lenders, raising concerns about their lack of established operating practices. He further warned that all unlicensed money lenders operating in Uganda will be publicly exposed through media channels to protect the general public.
As the chief guest, Mr. Kasolo also commended UMRA’s Executive Director, Mrs. Edith Namugga Tusuubira and her team for their regulatory and supervisory efforts in achieving strong performance from Ugandan money lenders.
Additionally, the Minister pledged to discuss with President Museveni potential funding options to “grease” the operations of lending companies. He stated, “I can talk to the government to fund money lenders only on condition that they will avail 24% interest to clients per year so that the people can get cheap capital and do business.”