Kampala, Uganda | By Michael Wandati | Deputy Speaker of Parliament, Thomas Tayebwa, has called for an investigation into alleged harassment and unethical behavior by certain online lending platforms. His concerns stem from personal experience, which he shared on social media.
In a post on X (previously known as Twitter), Mr. Tayebwa described how he was contacted by a representative from Mangu Cash, an online lending company. The caller reportedly issued threats, demanding that he locate an unidentified individual who had listed him as a next of kin.
The Deputy Speaker condemned the approach, urging authorities to scrutinize the operations of such firms to protect consumers from exploitation.
This incident has brought to light the pressing need for regulatory oversight in the rapidly growing digital lending sector.
“I have just received a call from some tough-speaking lady claiming to be from Mangu Cash, threatening to deduct their loan money if I don’t produce some random person who put my name as their next of kin when they were borrowing. I think a lot of criminality is going on,” he wrote, tagging Police CIID Director Tom Magambo.
Deputy Speaker Thomas Tayebwa’s plea for intervention highlights increasing public alarm over the aggressive debt recovery strategies used by certain online lending firms.
While digital lending has expanded financial inclusion by reaching those underserved by traditional banking systems, complaints about intrusive and unauthorized communication have cast doubt on the ethical standards within the sector.
Mr. Tayebwa has called on financial regulators and law enforcement agencies to take decisive action, emphasizing the need to address these exploitative practices and ensure consumer protection.
“Police Director CIID Tom Magambo, you need to interest yourself in this sector; many Ugandans might be dying quietly,” Tayebwa added, noting the potential hidden impact on financially distressed citizens.
Critics have raised alarm over the lack of oversight in the digital lending industry, where borrowers are often required to provide contact details for “next of kin.” These contacts, though uninvolved in the loan agreements, are frequently targeted for debt recovery in cases of default, leading to allegations of harassment and breaches of privacy.
Deputy Speaker Thomas Tayebwa expressed concern over the role of mobile money platforms in facilitating these practices. He urged telecom companies to ensure their services are not exploited by lenders engaging in unauthorized debt recovery and emphasized the importance of their involvement in curbing these abuses.
Regulatory bodies like the Bank of Uganda (BoU) and Uganda Communications Commission (UCC) are striving to address the challenges posed by the sector’s rapid expansion. However, limited legislation governing digital lending has hindered enforcement efforts.
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In response to growing complaints, the BoU has warned unlicensed lenders and encouraged the public to report instances of harassment.
Tayebwa’s appeal adds momentum to calls for enhanced consumer protections and privacy safeguards. His statement is expected to pressure authorities to take stronger action against unethical practices in the industry.
Meanwhile, public awareness campaigns on online and mainstream media such as Beera Steady are educating Ugandans on digital fraud and lending risks.
Citizens now look to government agencies and law enforcement for meaningful reforms to safeguard borrowers and their contacts from exploitation and harassment.
