Iganga, Uganda: Iganga Central Market Chairperson Elvis Tanaziraba has been arrested amid allegations of embezzling traders’ funds under the Katale Loan Scheme, following a directive from the Senior Presidential Advisor on Political Affairs, Hajat Hadijah Namyalo, also known as Chief Muzzukulu.
The arrest came on Friday, October 24, after Hajat Namyalo ordered local authorities to take action against officials implicated in the mismanagement of funds amid an uproar from the disgruntled vendors.
Tanaziraba was arrested and detained alongside his vice, Ms Batole Aisha and taken to Iganga Central Police station to answer allegations of collecting huge sums of money disguised as loan application fees under false promises that they would receive loan capital from the fund established by the President.
Over 400 groups, each comprising at least 10 traders, reportedly paid UGX 30,000 for registration and bank account opening, but traders say they never received the loans, prompting growing outrage and petitions to the Office of the National Chairman (ONC).
One of the vendors, Kakaire Isma, the chairman of the bicycle riders and abattoir section of the market, said the chairman, along with his vice and the Community Development Officer, asked them to pay an extra UGX 100,000 per file to process documents purportedly meant for funding.
“We cannot allow corruption to frustrate the efforts of hardworking Bazzukulu. Those who mishandle the Katale Loan funds must face the law,” Hajjat Namyalo directed, instructing the Iganga Resident District Commissioner (RDC), Mr Hamwada Ismael Pinto, to immediately have the implicated officials arrested for further probe.
Katale Loan Scheme, launched by President Museveni in May this year, was established to support small-scale vendors with affordable credit (interest of 8 percent), aimed at improving their working capital and expanding businesses in markets across Uganda.
Hajjat pledges action, rallies youth to wealth creation initiatives
Speaking to the vendors, Hajjat Namyalo assured them that the ONC would follow up on the Katale Loan Scheme irregularities to ensure all responsible officials are held accountable. “We’re taking this matter seriously. These funds belong to Bazzukulu, not to individuals who think they can enrich themselves at your expense,” she said.
The ONC boss also decried the deplorable state of Iganga Central Market and questioned why the municipality, considered Busoga’s business hub, still operates under poor conditions.
“It’s unacceptable that traders here still sell in muddy, unsafe environments.This is a matter we will raise with the Ministry of Local Government and relevant agencies to push for a modern market in Iganga,” Namyalo added.
On wealth creation, Hajjat Namyalo encouraged traders and youth to fully embrace government programs such as the Parish Development Model (PDM) and Emyooga, saying these initiatives were designed to help citizens grow economically.
She also appealed to residents to support President Museveni and the NRM in the upcoming 2026 general elections, arguing that electing NRM leaders across all levels would ease service delivery and project approvals.
“You cannot expect full development when you vote leaders who frustrate government programs. This time, let’s vote wisely for the NRM to ensure the resolutions we pass truly benefit the people,” she said.
If you would like your article/opinion to be published on Uganda’s most authoritative news platform, send your submission on: [email protected]. You can also follow DailyExpress on WhatsApp and on Twitter (X) for realtime updates.
