Kampala, Uganda: The State Minister for Microfinance, Hon. Haruna Kasolo Kyeyune, has announced a government crackdown on unregulated digital moneylenders, warning that their unchecked operations pose a growing risk to financial stability and consumer protection.
Speaking during the 3rd Annual National Microfinance and Savings Groups Conference 2025 held on Monday, November 10, at Hotel Africana, Kasolo said many digital lending platforms operate “in the shadows,” making them difficult for authorities to trace, monitor, or hold accountable.
“Digitisation has been instrumental in expanding access to financial services, but this must go hand in hand with regulation,” Kasolo said. “Government will start scrutinising all moneylenders before licensing them. We shall confirm their financial capacity to ensure they don’t exploit Ugandans.”
Push for Financial Discipline and Consumer Protection
Kasolo said the ministry is working with the Bank of Uganda and Uganda Microfinance Regulatory Authority (UMRA) to tighten oversight on emerging fintech and digital credit platforms.
He noted that while technology has expanded access to credit, some digital lenders use predatory interest rates, hidden fees, and data privacy violations to exploit borrowers — practices the government now intends to curb. “No one should profit from desperation. Financial inclusion must empower, not impoverish,” Kasolo emphasized.
The conference, held under the theme “Sustainable Financial Inclusion for Environmental, Economic and Social Impact,” was attended by policymakers, microfinance institutions, and savings groups from across the country.
Ramathan Ggoobi, the Permanent Secretary and Secretary to the Treasury, lauded Uganda’s progress in expanding financial inclusion, revealing that access to formal and informal financial services now stands at 81% of the population — a sharp rise over the past decade.
“Eight out of every ten Ugandans are now part of the financial system,” Ggoobi said. “This improvement is driven by innovative products under programmes like the Parish Development Model (PDM) and Emyooga, which are transforming access to finance for the excluded.”
Ggoobi outlined government’s total investment of Shs11 trillion in wealth creation and access-to-finance initiatives aimed at empowering communities and supporting enterprise growth.
These include; Shs1.9 trillion in Uganda Development Bank (UDB), Shs4.4 trillion in the Parish Development Model (PDM), Shs760 billion in Emyooga, Shs463 billion in the Agricultural Credit Facility, Shs207.5 billion in the Youth Livelihood Programme, Shs12.5 billion in the Youth Venture Capital Fund, Shs168 billion in the Uganda Women Entrepreneurship Programme (UWEP), and Shs100 billion in the Small Business Recovery Fund.
Ggoobi said these targeted interventions were designed to bridge economic inequality, promote inclusive financing, and accelerate entrepreneurial growth across the country.
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