Prime Minister, Leader of Opposition Clash over Mobile Loans

Prime Minister Robinah Nabbanja on Thursday criticised what she described as a growing culture of habitual borrowing among citizens, including those with financial means, sparking a sharp rebuttal from the Leader of the Opposition who accused the government of double standards.

Speaking during parliament’s Prime Minister’s session, Nabbanja decried the prevalence of short-term loans accessed via mobile money platforms operated by MTN and Airtel. She recounted the common tendency of people warning senders against certain phone lines because of outstanding deductions.

“Including myself, it is affecting everybody,” Nabbanja said. “There is a habit of people borrowing even when they are able.”

The Prime Minister framed the remarks as a concern over personal financial indiscipline in an economy where digital credit has expanded rapidly. Mobile money loans have become a primary source of quick finance for many Ugandans, particularly those in the informal sector.

In 2025 alone, borrowers accessed at least Shs 2.75 trillion through these platforms, with MTN Mobile Money accounting for the bulk, approximately Shs 2.7 trillion, and the number of its borrowers rising from 2.2 million to 3.4 million. 

Leader of the Opposition Joel Ssenyonyi (Nakawa Division West) immediately rejected the characterisation as “very insensitive.” He questioned the basis for assuming borrowers have means and linked household debt pressures to broader economic conditions.

“How do you know they are able?” Ssenyonyi asked. He argued that many Ugandans turn to MTN and Airtel because they are financially constrained, not out of profligacy.

Pointing to the government’s own frequent requests for parliamentary approval to borrow, he added: “You borrow all the time. So let’s stop mocking the people of Uganda.”

Government borrowing is regulated under the Public Finance Management Act, 2015, which requires parliamentary authorisation for loans, establishes principles of fiscal responsibility, and is supported by periodic Charters for Fiscal Responsibility that set medium-term debt ceilings. 

Recent charter objectives aim to contain nominal public debt relative to non-oil GDP, with targets guiding a gradual reduction toward 50 percent by the early 2030s. finance. Finance ministry figures show Uganda’s total public debt stock stood at Sh130.9 trillion (about US$35 billion) by the end of 2025, up from previous quarters, with domestic debt comprising the larger share at around 54.5%.

Debt levels as a percentage of GDP have hovered in the low-to-mid 50s in recent reporting periods. Henry Musasizi, the Finance Minister has maintained that the debt remains sustainable over the medium term, citing fiscal consolidation efforts, though interest payments and refinancing needs continue to absorb a significant portion of resources.

During the same sitting, State Minister for Urban Development Margaret Muhanga argued that individual over-indebtedness poses distinct risks, stating that while the country is not in immediate danger from its borrowing, citizens are. She questioned the regulatory environment that allows widespread digital lending.

Musasizi also interjected, noting that parliamentarians themselves participate in approving budgets that necessitate borrowing and that such funds are directed toward government obligations rather than consumption.

Digital lending has improved financial inclusion and provided rapid access to small sums for emergencies, school fees, or working capital. At the same time, high effective interest rates, short repayment windows, loan stacking, and the linkage of defaults to national identification numbers have raised concerns about over-indebtedness and its impact on household resilience.

Unpaid mobile loans can affect credit histories maintained by licensed credit reference bureaus. Nabbanja’s intervention fits a pattern of government messaging on fiscal prudence, both at the household and national levels. In previous appearances she has urged better preparation of projects before loan disbursements to avoid idle funds and rising commitment fees. 

Opposition lawmakers counter that persistent deficits, ambitious infrastructure plans, and rising domestic borrowing costs shift the burden onto citizens through taxes, inflation pressures, and limited public service delivery.