In a bold and unprecedented move, President Yoweri Museveni has issued a stern warning to money lenders across the nation, signaling a crackdown on exorbitant interest rates that have burdened borrowers for far too long.
Museveni’s announcement, made during a NRM caucus at Entebbe State House addressed a long-standing issue that has plagued the financial landscape of the country.
“While chairing the NRM Caucus at Entebbe State House yesterday, I directed the Minister for finance to put out a statutory instrument within two weeks on the interest paid to money lenders in accordance with the inflation which the NRM will support,” Museveni said.
High-interest rates from money lenders, often targeting vulnerable borrowers, have been a source of widespread discontent and financial hardship.
In a passionate speech Museveni emphasized the government’s commitment to protecting the economic well-being of its citizens.
The President labeled the practice of imposing astronomical interest rates as “unconscionable” and vowed to take decisive action.
“These moneylenders who are causing suicide to our young people, who allows them to operate? Why should someone charge 20% interest on a loan per month? This must stop.”
The warning comes as a clear signal to money lenders that their practices will no longer be tolerated.
The President promised a comprehensive review of financial regulations and the introduction of measures aimed at capping interest rates, ensuring fair lending practices, and providing relief to those ensnared by predatory loans.
Financial experts and consumer advocates have welcomed the president’s declaration, seeing it as a vital step towards economic fairness and stability. They anticipate that these actions will not only alleviate the financial burden on borrowers but also promote responsible lending practices.
