LOAN SHARKS TAKE OVER SEMBABULE As Farmers Lose Land, Homes Over Debts
A section of lower local government leaders in Sembabule District is calling for a halt to the operations of non-bank moneylenders, accusing them of fueling land disputes, unlawful property seizures, and forced evictions through high-interest loans.
The leaders have petitioned the Sembabule Resident District Commissioner (RDC), alleging that some moneylenders are charging interest rates of up to 30 percent per month and using aggressive loan recovery methods that have left many families homeless and dispossessed.
Godfrey Mujunga, the Chairperson of Nabitanga Sub-county in Lwemiyaga County, says local leaders are overwhelmed by the growing number of disputes arising from borrowers who lose land, houses, and livestock after failing to repay the loans. According to Mujunga, the area has recently experienced an influx of moneylenders opening offices in trading centres, where they target farmers seeking emergency loans.
“These businesses are unregulated because they are operating from anywhere they find room for rent. Husbands have forfeited their homes and family land as security for loans, and when they default because of the high interest charged, the wives and children are rendered victims of the circumstance,” he says.
Mujunga says his office has received more than 40 complaints over the past two months, mainly from women and children facing eviction by moneylenders. He argues that authorities should urgently intervene to protect affected families. Sarah Arinitwe, the District Councillor representing Ntuusi Sub-county, accuses some moneylenders of acting with impunity, particularly during loan recovery and the attachment of borrowers’ property.
She says local leaders have attempted to engage the lenders over public complaints, but the business owners have allegedly been uncooperative. Arinitwe adds that prolonged dry weather has worsened the situation, forcing some farmers who borrowed money to invest in agriculture to flee their homes after crop failures left them unable to repay their loans.
Winston Kamugisha, the District Councillor representing Lwemiyaga Sub-county, and Sarah Ssemusoga, the Chairperson of Kyeera Sub-county, have appealed to the RDC’s office to verify the registration status of all moneylenders operating in the district, arguing that some may be operating illegally.
Ssemusoga alleges that some borrowers are persuaded to surrender their original National Identity Cards and sign sale agreements for their properties when taking loans, making it difficult for them to challenge the seizure of their assets in the event of default.
Responding to the concerns, Sembabule Deputy Resident District Commissioner Faisal Sseruwagi says the district is considering inviting the Uganda Microfinance Regulatory Authority to conduct an audit of all moneylenders operating in the area.
In the meantime, Sseruwagi says the RDC’s office has directed ward and sub-county chiefs, together with the General Internal Security Officers (GISOs), to ensure that moneylenders surrender all National Identity Cards confiscated from borrowers.
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