UMRA concerned about hiked SHG registration fees
The Uganda Microfinance Regulatory Authority (UMRA) officials are concerned about hiked non-uniform registration fees for Self Help Saving Groups (SHGs) across the country.
In 2022, UMRA issued operational guidelines for SHGs as defined under section 99 of the Tier 4 Microfinance Institutions and Money Lenders’ Act, 2016.
The objectives of the guidelines were to assist Self Help Groups in establishing financial stabilization mechanisms, and increase transparency.
UMRA spokesperson, Mr Edward Bindhe says they have received complaints that each district charges its own registration fees ranging from Shs60,000 – Shs150,000 and this may be considered high to some Self Help Groups.
“We have registered a public outcry that some local governments are charging exorbitant fees. For example here in Luweero, some people are saying they are charging sixty thousand per registration. In West Nile, some people were complaining that they were charged one hundred thousand. So, what is happening is that through the Ministry of Finance, we notified the Ministry of Local Government to get guidance on how we can implement a uniform fee for all the local governments,” Bindhe said.
He says they have embarked on sensitizing SHGs regarding the same.
