The Uganda Microfinance Regulatory Authority (UMRA) has disclosed that the government will issue its final decision on the resumption of issuing operating licenses to online money lenders next week. Ms. Racheal Vanesa Nakawoya, the manager for microfinance institutions at UMRA, conveyed that State Minister of Microfinance, Mr. Haruna Kyeyune Kasolo, will make a definitive announcement on the matter during a scheduled meeting.
According to Nakawoya, the meeting, slated for next Wednesday at Hotel Africana, will convene online money lenders and other stakeholders, with Minister Kasolo’s attendance to provide the final directive.
The halt on issuing licenses to online money lenders was initiated by Minister Kasolo on January 29, citing concerns about the unclear nature of their operations and their potential for exploiting Ugandans due to their untraceability.
During their recent annual general meeting, members of the Uganda Money Lenders Association (UMOLA) criticized the government’s ban on digital money lenders, suggesting that not all online money lending businesses are unregistered and advocating for dialogue and consultation instead.
UMRA had previously developed digital lending guidelines in response to public outcry over exorbitant interest rates charged by online money lenders. However, Minister Kasolo suspended the licensing processes, pending further review.
