Top Story!! Police Speaks As Online Money Lending App Threatens Speaker Thomas Tayebwa
Uganda’s police have initiated an investigation into a threatening call received by Deputy Speaker of Parliament Thomas Tayebwa from an agent of the online money-lending service, Mangu Cash.
Assistant Inspector General of Police (AIGP) Tom Magambo confirmed on Thursday that police are actively probing the allegations of misconduct by Mangu Cash. In response to Tayebwa’s post on X (formerly Twitter), Magambo assured, “Rt Hon. This concern is well received. My colleagues and I will do our best to handle this and other related crimes.”
Tayebwa had earlier shared on social media about a call he received from a woman claiming to represent Mangu Cash. According to Tayebwa, the caller demanded that he produce an individual who had listed him as a next of kin for a loan. She allegedly warned that if Tayebwa didn’t comply, the company would attempt to deduct the owed money directly from him. Tayebwa called the encounter “criminal” and emphasized the urgent need for regulatory oversight of online lenders.
“This shows the level of criminality happening here. I hope our telecoms are not allowing their mobile money platforms to facilitate fraud by unscrupulous companies,” Tayebwa wrote.
This incident highlights rising concerns over online lending platforms in Uganda. While these services provide fast access to loans, they frequently operate in a legal grey area, often engaging in unethical tactics like harassment, data misuse, and high interest rates.
The Uganda Microfinance Regulatory Authority (UMRA) has noted that consumer protections are often weak in the digital lending sector. A 2021 report found that 96% of SMEs lacked insurance coverage, mirroring a larger issue of limited consumer awareness regarding unregulated digital lending risks.
UMRA has taken steps to address these issues by drafting new guidelines in 2023 to curb predatory lending and protect borrowers.
President Yoweri Museveni has also voiced strong opposition to exploitative lending practices. In September 2024, Museveni condemned high-interest lenders, calling them “criminals” and committing to take action against their activities. He directed the Ministry of Finance to expedite regulations to shield borrowers from unethical practices, stressing that predatory lending not only stunts economic growth but also discourages entrepreneurship.
As part of the Digital Transformation Roadmap 2023–2028, the government aims to improve financial literacy, boost consumer protections, and strengthen oversight of digital financial services.
As the police investigation continues, consumers are encouraged to remain cautious when dealing with online lenders. Authorities urge borrowers to report any fraudulent or unethical practices, underscoring the need for vigilance in an evolving digital finance landscape.