Supplement from Ministry of Finance

Dec 11, 2017

Uganda Microfinance Regulatory Authority (UMRA) board inaugurated, urged to streamline SACCOs, money lenders

There were cries of joy when investors from Global Finance opened shop and promised a 15% monthly interest for savers. Members who recruited their friends, family and acquaintances were also promised 10% of the new investment. It was a deal that was just too good to leave.

However, in the end, some 3,000 people, many with millions of shillings in the company were left to scratch their head in distress when offi cials from the company simply vanished in thin air.

Cognizant of that there are numerous stories of Ugandans getting conned by unlicensed fi nance services providers and in many cases, money lenders who charge exorbitant rates of interest, parliament recently passed the Tier 4 Microfi nance Institutions and Money Lenders Act 2016.

The Act also established the Uganda Microfi nance Regulatory Authority (UMRA) to license and regulate of all Tier 4 micro fi nance institutions (MFIs) including Savings and Credit Cooperative Societies (SACCOs). UMRA will also regulate Non Deposit-Taking MFIs, Financial NGOs, and Self Help Groups (SHGs); the licensing, management and control of money lending business.

The Act also repealed the Money Lenders Act, Cap. 273. While Bank of Uganda currently regulates Microfi nance Deposit taking Institutions with minimum capital of sh500m, there was no one looking at institutions lending credit below that of sh500 million. Recently, the State Minister for Microfinance, Haruna Kyeyune Kasolo, inaugurated UMRA's board at the Rwenzori house complex with a mandate to streamline the actions of money lenders and SACCOs.

The new board is chaired by Jackline Mbabazi. Other members include Joyce Okello, Naome Kibaju, Robert Bariyo Barigye, Charles Oleny Ojok, Ndyanabo Richard and interim executive director Avu Elly Biliku. CLICK HERE FOR MORE ON THIS INFORMATION 

 

 

 

 

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