Tayebwa call on illegal online money lenders is very timely

During last Thursday's Parliamentary seating, Deputy Speaker of Parliament Thomas Tayebwa opened the session by demanding an explanation from the Minister of Finance regarding the many online money lending companies that are harassing Ugandans after offering them loans through various mobile apps.

Mr Tayebwa's call came after someone purportedly from an online lending App, called him threatening to sue him over an online loan taken by someone who had used him as a surety, obviously without his knowledge.

This prompted Mr Tayebwa to swing into action, demanding an explanation. Thanks to his 'down to earth' character of picking up people's phone calls, even those he doesn't know! Had he not picked up this phone call from a stranger, this issue would not have come to light.

Mr Tayebwa's experience is just the tip of the iceberg. It is a painful reminder of the unchecked exploitation Ugandans endure on a daily basis. 

Illegal and unregulated lenders both physical and digital, have unleashed a reign of terror on countless Ugandans.

A few hours before Mr Tayebwa raised this issue, I was with Mr James Kaberuka, the MP for Kinkizi West, when a constituent — a widow-- called him crying after she was told to pay Shs3 million to a money lender for a loan of Shs300,000.

Such stories are disturbingly common, the predatory lenders wield power with impunity, taking advantage of people's financial vulnerability and ignorance of the law. 

They demand exorbitant interest rates, seize properties through coercive agreements, and leave families devastated often stripping them of their last semblance of dignity.

The emotional toll of this exploitation is gut-wrenching; a mother forced to sell her only piece of land for a loan she barely benefited from, a father losing the motorcycle that feeds his children, young people haunted by relentless calls from strangers threatening legal action for loans they never knew existed, to say the least.

What makes this situation even more alarming is the blatant disregard for legal frameworks by online money lending platforms. 

They flout Bank of Uganda regulations, impose outrageous charges, and harass borrowers and innocent guarantors alike.

Their operations are not just unethical; they are a national security threat. By collecting sensitive data—such as National ID numbers and personal information—they risk exposing Ugandans to identity theft and even espionage. In the wrong hands, this data could be weaponised against the State.

Therefore, Mr Tayebwa’s impassioned push for tough measures is a wake-up call for the government to decisively confront this menace. It is not enough to regulate these money lenders, they must be held accountable and those operating illegally should face swift closure and prosecution. The financial and emotional scars they leave behind are too deep to ignore any longer.

The government has a moral and legal obligation to shield its citizens from such predatory practices. 

The burden of compliance with financial regulations should not fall on impoverished and often uneducated borrowers. 

Instead, it should be firmly placed on lenders. Stringent laws must be enacted and enforced to make it too risky for any lender to exploit the vulnerable.

This is not just about financial regulation; it is about restoring dignity and hope to those who have been trampled by greed. Mr Tayebwa’s courage in exposing this issue deserves the highest praise because he has spoken for the millions who are voiceless.

Now, the ball is in the government’s court. Will it rise to the occasion and dismantle this exploitative system? Or will it allow the cries of its people to fade into silence once again? Mr Tayebwa’s call is a clarion cry for action. Ugandans are watching—and waiting.

Mr George Muhimbise
[email protected],
0787836515