By: MOSES OKEYA and OPIO SAM CALEB
Kamuli: The government is to cancel the Money Lenders Act to end the opportunistic way they mortgage and sell properties of desperate members of the public, the State Minister for Micro Finance has said.
Ms Caroline Amali Okao said the move is to strengthen Saccos and regulate operations of Micro Finance Institutions in order to protect the public from being cheated. “We are moving in to regulate the operations of Micro Finance Institutions, repeal the Money Lenders Act and strengthen Saccos,” Ms Okao said.
The minister disclosed this recently in Kamuli District during Sacco management training sessions organised by the Speaker of Parliament, Ms Rebecca Kadaga. Ms Kadaga is also the Woman MP for Kamuli.
Ms Okao said the government is to implement the plans through the Bank of Uganda Financial Inclusion Project.
The project aims at bridging the gap between vulnerable community members and financial institutions, including money lenders.
The commissioner in-charge of Micro Finance in the Ministry of Finance, Dr Maxwell Adea, attributed poor management of Saccos to weak management systems, multiple membership borrowing and a poor saving culture.
Dr Adea said these challenges are to be addressed through capacity building and financial literacy campaigns.