Cooperatives & Communities

UMRA, URSB summon money lenders for crucial meeting in Kampala

KAMPALA – The Uganda Microfinance Regulatory Authority [ UMRA ] in partnership with Uganda Registration Services Bureau [URSB] has organised a workshop aimed at sensitising selected money lending companies in the country on compliance requirements.

The workshop to be held on November 30, 2022, at Hotel Africana in Kampala will also explain how money lenders can join security interest in movable property registry system [SIMPO] run by URSB, which among other responsibilities, is responsible for registration of companies in the country.

Under the Tier 4 Microfinance Institutions and Money Lenders Act, 2016, UMRA is mandated to regulate, license and regulate all money lenders including SACCOS to help them achieve compliance and proper operational standards.

According to the letter signed by executive director Edith Tusuubira on November 7, 2022, representatives of 60 money lending companies such as Divine Group Limited, Police Savings Association Limited, Asante Financial Services, and Guru Partners Limited among others are required to attend the half-day meeting.

During the meeting, UMRA will seek to address some of the numerous financial and money lending challenges some of which emanated from the Covid-19 pandemic, particularly the failure of clients to pay off their loans and interest as scheduled by money lenders.

According to the day’s schedules, among the issues to be handled during the meeting will be an overview of security interest in movable property registry, which has been a source of clashes between money lenders and their clients.

News sites have been awash with a story, in which Prime Minister Robinah Nabbanja intervened in a controversial court case where a mother of eight was sentenced to six months in prison after she failed to pay back a debt of Shs 6 million she picked during the Covid-19 lockdown.

Mengo Chief Magistrate’s Court had sentenced Gertrude Nalule to Luzira, before Premier Nabbanja intervened to pay off the debt.

Nabbanja noted that such scenarios are several in the countryside, arguing courts to always consider to dig deep into the issues at hand before they dispense justice.

UMRA says it also works to limit predatory lending and unethical practices that make it hard for clients to pay off their debts.

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