The Bank of Uganda is under pressure to address growing concerns over online lending and mobile money loans following reports that innocent Ugandans are being listed as loan guarantors without their knowledge or consent.
The matter was raised before Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE), where MPs said some online lenders allegedly use people’s registered phone numbers as guarantors and later demand repayment from them.
In some cases, victims reportedly have their mobile money transactions blocked or restricted over loans they never borrowed.
Bank of Uganda Governor Dr. Michael Atingi-Ego told the committee that mobile money services are regulated by the central bank. However, he noted that some online lending platforms fall outside the Bank of Uganda’s regulatory mandate and are instead overseen by the Ministry of Finance’s Microfinance Regulatory Department.
COSASE has since asked the Bank of Uganda to investigate the complaints and provide Parliament with a list of licensed mobile money operators.
The committee said stronger regulatory safeguards are needed to protect Ugandans from being wrongly targeted for loans they did not take and to ensure that victims have effective channels for seeking redress.
By Francis Lubega