The Minister of State for Microfinance, Mr Haruna Kasolo Kyeyune, has temporarily halted money lending licensing in Uganda, citing unfair policies by most of the lenders.
The minister who was launching the Financial Institution Performance Tool in Kampala yesterday under the Association of Microfinance Institutions of Uganda told journalists that until he holds a meeting with the lenders early next year to agree on working terms, the licensing has been suspended.
“Because of the complaints that have come in my office, I have advised the executive director of UMRA [Uganda Microfinance Regulatory Authority] to halt the issuance of certificates of money lenders because I know that all certificates are expiring in December,” Kasolo said.
The minister further urged Ugandans to be careful with lenders when borrowing money, and that they should take their time to read the agreements and other terms provided thoroughly before signing to avoid falling into debt traps.
