By Weswa Ronnie
MBALE CITY
At least 26 money lending companies are at the risk of facing closure by Mbale city authorities after failing to cooperate with government directives.
This was revealed by Milly Lornah Kharonah, the Mbale City Commercial Officer on Thursday, 25th April, 2024 while launching Unifi Microfinance Mbale branch located Republice Street, Industrial City Division in Mbale City.
According to Kharonah, Mbale city being a commercial center has a number of microfinance institutions, banks and money lending companies.
She adds that Uganda Microfinance Regularity Authority (UMRA), a government agency under Ministry of Fiancé which regulates all financial institutions passed a directive of stopping all financial institutions from withholding personal requirements such as National Identification Cards, ATMs, land titles among others before offering someone a loan.
Kharonah says that they have received public outcries from different numbers of people claiming that some money lending companies are going ahead withholding their IDs, ATM cards and land titles before offering a loan which she referred to as illegal.
She confirmed that soon in undisclosed dates with the office of the RCC, they are going to carry out an operation to close all those money lending institutions since they are working outside the law.
Nikki Louw, the country manager of Unifi microfinance institution says that they opened the branch office in Mbale to bring services near to people of Bugisu.
He adds that most civil servants want to get loans and solve their problems but they fear to go to banks since they fear high interest rates but their financial institution has cut interest rates to favour them.
He adds that Unifi microfinance institution mainly gives loans to working class people who are paid salaries through the banks.
Martha Acheng, the Unifi microfinance Mbale branch manager urged people of Bugisu to welcome the bank such that it can solve their financial related problems.
