Vendors from Kalerwe and St. Balikuddembe (Owino) markets are set to benefit from a low-interest government financing initiative dubbed the Katale loan, aimed at supporting low-income traders.

The business funding project, directed by President Yoweri Museveni, will be implemented through the Microfinance Support Centre (MSC) and offered at an annual interest rate of only 8%.

The initiative seeks to economically empower traders and protect them from exploitative lending practices.

According to State House officials, the program is a pilot project focused on markets within the central region.

Its expansion to other areas will depend on its success in Kampala.

Over 10,000 vendors across 24 sub-markets in Kalerwe, along with many others operating in Owino market, are expected to benefit.

During a stakeholder meeting held at Fairway Hotel on Tuesday, 20th May 2025, Moses Byaruhanga, the Senior Presidential Advisor in charge of Political Mobilization, assured market representatives that the Katale loan was designed to liberate traders from high-interest, unsecured loans typically offered by informal moneylenders.

Byaruhanga emphasized that the loan does not require collateral.

Beneficiaries will only need to present the groups they belong to for verification, after which funds will be disbursed directly to their individual mobile money accounts.

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