The Uganda Microfinance Regulatory Authority- UMRA is to start issuing licenses to money lenders.
Elly Avu Biliku, Executive Director UMRA, says that licensing which will start this month will put an end to moneylenders who cheat borrowers.
Biliku notes that the Tier Four Microfinance and Money Lenders Act of 2016 gives them the mandate to license, regulate, and supervise operations of financial institutions outside the ambit of Bank of Uganda and money lending activities.
He says that Institutions and individuals who have ill motives such as defrauding citizens will not be licensed.
However, Male Mabirizi Kiwanuka, the General Secretary Money Lenders Association of Uganda said that UMRA should relax the regulations.
He explains that a regulation like requesting each money lender to be incorporated as a company is discriminatory.
The showdown is on.
