Kampala, Uganda | By Michael Wandati | The Minister of State for Microfinance, Mr. Haruna Kasolo Kyeyune, has announced a temporary suspension of money lending licensing in Uganda, citing perceived unfair policies by a majority of lenders.
The decision was disclosed during the launch of the Financial Institution Performance Tool in Kampala, organized by the Association of Microfinance Institutions of Uganda.
Speaking to journalists, the minister revealed that money lending licensing in Uganda would remain on hold until he convenes a meeting with lenders early next year to negotiate and establish fair working terms.
Kasolo emphasized that the move was prompted by complaints received in his office, and he has advised the executive director of UMRA (Uganda Microfinance Regulatory Authority) to temporarily halt the issuance of certificates for money lenders, considering that all certificates are set to expire in December.
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“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.
Additionally, Minister Kasolo urged caution among Ugandans when dealing with lenders, emphasizing the importance of carefully reviewing agreements and other terms before signing. This, he suggested, would help individuals avoid falling into debt traps.
