By Muhimbise George
On Thursday’s Parliamentary seating, the Deputy Speaker of Parliament Rt Hon Thomas Tayebwa opened the sitting by demanding 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.
Tayebwa’s call came after someone purportedly from Mangu Cash, an online lending company 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 Tayebwa to swing into action demanding explanation. Thanks to his ‘down to earth’ character of picking people’s phone calls, even those he doesn’t know! Had he not picked this phone call from a stranger, this issue would not have come to light!
Tayebwa’s experience is just a tip of an 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 Hon Tayebwa raised this issue, I was with Hon Kaberuka James, the MP for Kinkizi West when a constituent — a widow called him crying after being demanded to pay ushs 3 million to a money lender for a loan of shs 300,000.
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-wrotching; 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’s 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 weaponized against the state.
Therefore Tayebwa’s impassioned call 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. 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? Tayebwa’s call is a clarion cry for action. Ugandans are watching—and waiting.
Muhimbise George
muhimbiseg@gmail.com, 0787836515
