President Yoweri Museveni has pledged to take firm action against exploitative money lenders, accusing them of preying on the ignorance and desperation of vulnerable citizens. Speaking at the Southern and Eastern Africa Chief Justices Forum on October 1 at Speke Resort Munyonyo, Museveni condemned the unscrupulous practices of lenders who charge exorbitant interest rates.
“Money lenders are becoming a problem. They go to our villagers and cheat them,” Museveni remarked, expressing concern over how poorly informed borrowers are exploited by cunning lenders.
The President explained that despite Uganda’s low inflation rate, currently around 3%, some lenders charge up to 240% interest. “Why do you do that in an economy where inflation is only 2%?” he questioned.
Museveni further criticized money lenders for disguising lending agreements as property sale contracts, allowing them to seize assets from unsuspecting borrowers. He emphasized the need for a new law to curb the vice but also argued that existing contract law could provide justice in such cases. “How can a house in Munyonyo cost Shs1 million? You can tell it’s not a sale, but a loan disguised as one,” he said.
This isn’t the first time Museveni has raised concerns about exploitative lending practices. He has previously criticized high interest rates and their detrimental impact on economic growth, vowing to protect the public from such exploitation.
The forum, which brought together chief justices from over 15 countries across Southern and Eastern Africa, focused on improving access to justice and addressing challenges within judicial systems.
Judicial Challenges
Chief Justice Alfonse Owiny-Dollo highlighted several justice-related obstacles common in African countries, including case backlogs, corruption, high legal fees, and inadequate infrastructure. He called for reforms to address these issues, adding that the forum serves as an opportunity to learn from one another.
“Through this forum, we are reminded of the responsibility to learn and change our mindsets when necessary,” Owiny-Dollo said, expressing optimism that the participants would identify solutions to improve justice delivery.
The forum, under the theme “Enhanced Access to Justice: Underscoring Reforms in African Judiciaries,” also addressed the impact of technological advancements, rapid urbanization, and population growth on judicial systems.
Supreme Court Justice Mike Chibita stressed the importance of judicial reforms in responding to these challenges, while the Chief Justice of Eswatini, Bheki Maphalala, urged African governments to allocate adequate financial resources to their judiciaries. He emphasized that poor working conditions and underfunding were undermining the rule of law across the continent.
The conference will conclude on October 4.
