In a bid to protect Ugandans against outrageous interest rates by money lenders, government intends to introduce regulations to operationalize section 90 Tier 4 of the Micro Finance and Money lenders Act 2016.
Speaking to journalists after the Caucus meeting at State House Entebbe, the Government Chief Whip, Hon. Hamson Obua said that it’s the mandate of the caucus is to support the party chairman especially if it’s something that affects Ugandans.
The NRM party parliamentary caucus has agreed with party chairman Yoweri Kaguta Museveni to introduce regulations to operationalize section 90 of Tier 4 of the Micro Finance and Money Lenders Act 2016.
This was revealed by the Government Chief Whip, Hon. Hamson Obua made remarks during a press conference after the Caucus meeting at State house in Entebbe.
He added that the law empowers the ministry of Finance, to come up with regulations and the President’s directive in in line with the subject matter.
Obua said that the President’s directive follows a general outcry from the public stemming from outrageous interest rates charged by money lenders.
“Money lenders in Uganda are charging outrageous interest rates. And if they are found to be charging interest rates outside the law, they will be criminalized,” said Obua.
This is aimed at controlling the hiked interest rates charged by money lenders and the caucus asked the Ministry of Finance to process this within two weeks.
“The interest rate being charged by money lenders is outrageous. This needs to be controlled,” said Obua.
In July this year, the Speaker of Parliament, Hon. Anita Among threatened to terminate all Memorandum of Understanding that various money lenders have with a section of MPs in the 11th parliament citing high-interest rates.
This measure comes at a time when members of parliament have been facing serious problems in clearing their debts with money lenders due to interest accumulation.
Obua further said that they also resolved to have an amendment in the law to strengthen the Anti-Corruption legal regime to fight white-collar extortion.
The caucus also resolved to hold the retreat at Kyankwanzi after the independence celebrations under the theme How To Lead?