Summary:
- The Minister of State for Microfinance in Uganda, Mr. Haruna Kasolo Kyeyune, has temporarily suspended money lending licensing due to perceived unfair policies, urging caution among citizens and planning negotiations with lenders in the coming year.
Mr. Haruna Kasolo Kyeyune, the Minister of State for Microfinance, recently made a significant announcement in Kampala during the launch of the Financial Institution Performance Tool, hosted by the Association of Microfinance Institutions of Uganda. The announcement pertained to the temporary suspension of money lending licensing in Uganda, a decision rooted in the perceived unfair policies adopted by a majority of lenders.
Addressing the media, Minister Kasolo disclosed that the hiatus in money lending licensing would persist until he could convene a meeting with lenders early in the upcoming year. The primary objective of this meeting would be to negotiate and establish fair working terms, addressing the grievances that prompted the suspension. Kasolo clarified that the decision was prompted by complaints received in his office, prompting him to advise the executive director of the Uganda Microfinance Regulatory Authority (UMRA) to temporarily cease the issuance of certificates for money lenders, especially considering that all existing certificates were set to expire in December.
Highlighting the gravity of the situation, Minister Kasolo not only acknowledged the complaints but also emphasized the need for caution among Ugandans when engaging with lenders. He stressed the importance of thoroughly reviewing agreements and other terms before signing any financial contracts. Kasolo’s advice aimed to empower individuals to make informed decisions, safeguarding them from potential pitfalls and debt traps associated with money lending practices.
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