Musherure Calls for Stronger Digital Lending Regulation as Financial Inclusion Reaches 81%

What the report says

Uganda’s Minister of State for Microfinance, Shartsi Kutesa Musherure, has called for tighter oversight of digital lenders and microfinance institutions as the country’s financial inclusion rate continues to rise. Speaking at a two-day retreat at Speke Resort Munyonyo involving the Ministry of Finance and parliamentary committees, she said broader access to credit must be matched by stronger consumer protection, better governance and responsible lending rules.

According to the report by Nile Post, Musherure said financial inclusion increased from 70% in 2009 to 81% in 2023, with government aiming for 85% by 2028 under the Second National Financial Inclusion Strategy. She linked much of that growth to mobile money, SACCOs and village savings groups, but warned that the rapid expansion of digital lending and Tier IV microfinance institutions has introduced new regulatory risks. She urged authorities to close gaps in the rules covering digital lending platforms and strengthen supervision of smaller lenders.

The minister also pointed to government programmes such as the Parish Development Model and Emyooga, saying they have widened access to affordable finance but now need greater emphasis on sustainability, monitoring and loan recovery. She said better coordination between Parliament and the Ministry of Finance would help align budgeting, accountability and national priorities. In broader context, Uganda has been expanding formal and semi-formal financial services, and policymakers are now weighing how to keep that growth inclusive without exposing borrowers to abuse or debt stress.