Kapelebyong District has taken a bold stance to crack whip on unlicensed money lending entities in the district, a decision that stems from growing complaints from communities over alleged exploitation of borrowers.
In a letter dated November, 5, 2026, Chief Administrative Officer (CAO) Simon Peter Akileng, directed all Senior Assistant CAOs and Town Clerks to compile lists of all money lenders in their areas.
He said the move is in response to several complaints arising from the communities across the District accusing some money lenders operating without valid licenses from the Ministry of Finance, Planning and Economic Development (formerly Uganda Microfinance Regulatory Authority), for exploiting them through exorbitant interest rates.
Akileng directed Senior Assistant CAOs and Town Clerks to compile lists of money lenders in their areas and submit them for verification by the District Commercial Officer to establish their licensing status, legitimacy and possession of operational permits.
Under the law, money lenders must hold a valid licence from the Ministry of Finance, Planning and Economic Development, formerly regulated through UMRA, in addition to an operational permit from the Sub County or Town Council where they operate.
Licensed money lenders in Uganda are legally restricted to a maximum interest rate of 2.8 percent per month, which equals 33.6 percent per annum, according to regulations under the Tier 4 Micro Finance Institutions and Money Lenders Act.
Operators found without the required licences and permits risk enforcement action, including being stopped from doing business until they meet the legal requirements.
The letter was copied to the Resident District Commissioner, the District Chairperson, the Secretary for Finance, Planning and Administration, and the District Commercial Officer.
SOURCE: URN
