Minister warns against exploitative moneylenders seizing IDs
The Minister of State for Microfinance and Cooperatives, Haruna Kasolo, has sounded an alarm over moneylenders who demand sky-high interest and seize borrowers' National IDs as makeshift collateral. He said anyone caught doing that will be arrested. While launching the Microfinance Forum in Kampala, Kasolo noted some lenders ask for between 30 and 60 percent yearly, well above the official ceiling. He stressed the urgent need to strip reckless operators of their licenses to shield vulnerable Ugandans. Uganda currently has about 645 money-lending firms and 140 microfinance institutions. Rachel Nabisubi reports.
