Ugandan lawmakers have expressed discomfort with the new move by telecommunications giant, MTN to start taking savings and lending money to Ugandans.
The legislators also raised concern over consumer protection from services offered by telecom companies.
According to reports, MTN announced early this week that it would partner with Bank of Africa to offer financial loans through its mobile money services.
Kenneth Lubogo, the Bulamogi County MP on Wednesday raised on a matter of national importance citing MOKash advertisement by MTN Telecom Company inviting Ugandans to start saving and take loans.
MOKash is a service available for MTN Mobile Money customers that enables them to save and take loans on a short term basis. According to the company, customers can save while earning an interest or take out short term loans at a reasonable fee.
Lubogo said that the telecom company has about 9 million subscribers and that if these people borrow at an interest rate of 9 percent per month set by the telecom company, it would translate into 108 percent per year.
MP Lubogo questioned whether MTN had become a financial institution to start taking savings from Ugandans.