Kampala. Government through the Justice Law and Order Sector (JLOS) is set to enact a law that will regulate asset financing.
Mr Andrew Khaukha, the project manager of the committee that has been set up to draft the law, yesterday said the main aim of the law is to increase the volumes of financial lease transactions in the country.
Asset financing is where a given bank buys an asset on behalf of an individual who then pays a certain amount of money on a monthly basis until the money used to buy out the asset is covered and the asset becomes the individual’s property.
Mr Khaukha said currently, there is no appropriate law that courts can apply to address conflicts that ensue between banks and individuals involved in asset financing contracts.
“If the law is passed by Parliament, it will help ordinary farmers as they will be able to acquire farming equipment to carry out commercial farming at conducive rates while knowing that there is a law that protects them,” said Mr Khaukha
In order to fast-track the law, JLOS has constituted a committee that includes Solicitor General Francis Atoke, Chief Registrar Paul Gadenya, Secretary to the Treasury Keith Muhakanizi and URA Commissioner General Doris Akol. Others are Ms Justine Byagenda, a representative of Bank of Uganda, and the managing director Dfcu Bank, Mr Juma Kisaame.
SOURCE: Daily Monitor