Minister Promises Crackdown on Underground Digital Loan Companies

The state minister for microfinance Haruna Kasolo has emphasised the need for government to regulate the digital money lenders sector.

Kasolo says many of the digital money lenders services are hidden and untraceable which makes it difficult for the government to monitor them.

“Digitisation has been instrumental in expanding access to financial services but this must go with regulations”, Kasolo asserts.

“government is also going to start scrutinizing all money lenders before giving them licences, we will first confirm those qualified and have enough money so that they don’t exploit Ugandans,” he added.

He was speaking at the 3rd Annual national microfinance and savings groups’ conference 2025 taking place at hotel Africana.

The conference is under the theme: sustainable financial inclusion for environmental, economic and social impact.

The conference is being held to address the challenge of access to finance especially for people who are excluded from participating in the growth of the economy.

The permanent secretary and secretary to the treasury Ramathan Goobi says Uganda’s financial inclusion journey is becoming impressive as this has increased to 81% among Ugandans.

This is due to the financial inclusion products that have started impacting the people like the PDM and this means that about 8 of the 10 Ugandans are included in the financial system, he says.

“The government has invested 11 trillion shillings in wealth creation funds as part of the efforts to ensure access to finance, Goobi remarked.

1.9 trillion shillings has been invested in UDB, 4.4 trillion shillings invested in PDM, 760 bn shillings in emyooga, 463 bn shillings in agricultural credit facility, 207.5bn shillings in the youth livelihood programs,12.5 bn shillings in youth venture capital fund,168bn shillings in Uganda women entrepreneurship program, and 100 bn shillings in small business recovery fund.