The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | District leaders in Bunyoro sub-region have asked the Uganda Microfinance Regulatory Authority to investigate microfinance institutions that are illegally taking deposits from members of the public.
The call was made at the launch of a campaign organised to create public awareness on the mandate of the authority. The campaign that kicked off at Country Inn in Masindi district on Tuesday, attracted more than 100 money lending institutions, Non-deposit taking Microfinance Institutions and Savings and Credit Cooperatives, from Masindi, Buliisa and Nakasongola districts.
During the campaign, district leaders observed that a number of individual money lenders and institutions are operating in the area without licenses. They also stated that some non-deposit taking microfinance institutions continue to collect deposits from unsuspecting individuals.
Masindi district chairman Cosmas Byaruhanga says that the region has recorded an upsurge of unregulated money lenders in recent years. He explains that on top of some of them taking deposits from unsuspecting customers, they are also stealing their assets after duping them to sign sale agreements.
Byaruhanga explains that every week, he receives complaints of people whose properties have been taken mischievously by money lenders.
Masindi district Commercial officer Moses Kalyegira observes that some microfinance institutions are taking advantage of the fact that contents of the microfinance institutions and money lenders Act are not well known among members of the public. He has advised the regulators to intensify public awareness to save innocent customers.
However, Edith Tusuubira, the Executive Director of Uganda Microfinance Regulatory Authority warns the public against depositing money with Non-deposit taking microfinance institutions. She says that the authority has rolled out public awareness campaigns to educate the public about the regulatory requirements for the tier 4 microfinance institutions and money lenders Act.
Some licensed money lenders, however, complained that the Tier 4 Microfinance Institutions and money lenders Act,2016 only protects the borrowers.
George Bamutulaki, the manager More Money Lending Firm located in Kikuube district says the act is not supporting lenders and asked the government to amend it so that it can help money lenders in recovering their money.
The Uganda Microfinance Regulatory Authority was established by section 6 of the Tier 4 Microfinance Institutions and Money Lenders Act, to regulate, license and supervise all tier 4 microfinance institutions and money lenders in Uganda. These include SACCOs, Non-Deposit taking microfinance institutions, Self-Help groups, Community-based microfinance institutions.
In 2019, UMRA licensed 736 institutions around the country.
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