(Kampala) – The Ugandan government has been given a one month deadline to respond to widespread complaints about harassment by unregulated online money lenders, which have targeted citizens and even high-ranking government officials.
Deputy Speaker Thomas Tayebwa, speaking in Parliament on December 19, 2024, called for immediate regulation of online money lenders, emphasizing that their operations are largely unchecked. “We do not want to kill anyone’s business; we are saying let them be regulated. There is no one monitoring them—just harassment,” Tayebwa remarked.
Tayebwa revealed he was personally threatened by an online money lender demanding repayment on behalf of a debtor who had fraudulently listed Tayebwa as next of kin. The Deputy Speaker took to X (formerly Twitter) to voice his frustration, stating, “These groups wield immense power and retaliate against anyone challenging their illegal practices.” Tayebwa added that his wife had also received threats from another company.
The misuse of technology by some online platforms has caused significant distress across Uganda. Tayebwa noted that phone hacking and scams have become prevalent, leaving many people cheated. He urged the Ministry of Information, Communication, Technology, and National Guidance to investigate the broader misuse of technology in the country.
The issue is not limited to Tayebwa. Hon. Fredrick Angura of Tororo South County reported threats from a company called Boda Banja, which claimed he would be arrested if he did not pay a loan taken out by an unidentified person who listed him as a reference. “People are quietly suffering because of these scams,” Angura said.
Hon. Christine Kaaya, Kiboga District Woman Representative, highlighted the need to investigate not only online money lenders but also other apps that fail to deliver on paid services. She cited Afromobile, a platform that previously hosted TV and radio services but allegedly stopped providing content despite receiving subscriptions. Kaaya called for tighter scrutiny of platforms like Mangu Cash and Banja Boda.
State Minister of Finance, Planning, and Economic Development, Hon. Henry Musasizi, assured Parliament that he had engaged the Bank of Uganda on the issue. “The Central Bank has acknowledged the matter and is conducting investigations,” Musasizi said.
| Key Issues Raised About Online Money Lenders | Details |
|---|---|
| Harassment and Threats | Victims, including top officials, are receiving threats. |
| Unregulated Operations | Many online lenders operate without oversight. |
| Misuse of Technology | Includes scams and hacking through mobile platforms. |
| Call for Regulation | MPs and citizens demand stricter control and transparency. |
The government’s response and subsequent action are highly anticipated as citizens continue to raise concerns over the unchecked activities of these companies.
