KAMPALA — Budadiri East Member of Parliament Julius Nakiyi has called for stronger enforcement of Uganda’s laws governing interest charged on money borrowed through digital and mobile lending platforms.
Nakiyi made the call on Wednesday, September 16, 2026, during an engagement between Parliament and players in Uganda’s payments and digital financial services sector.
The MP questioned the basis of high charges being imposed on some digital loans, insisting that lenders operating under the applicable legal framework should comply with the prescribed interest limits.
“The issue of charges: look, the law has capped the charges, so it is not negotiable,” Nakiyi said during the parliamentary engagement.
His intervention came as legislators examined concerns surrounding digital lending, including the charges imposed on borrowers and the way some loan platforms recover money from customers’ mobile money accounts.
Under Legal Notice No. 21 of 2024, Uganda prescribed a maximum interest rate of 2.8 percent per month, or 33.6 percent per annum, for money lenders covered by the notice. The application of the rules to different digital lending arrangements has, however, remained an issue requiring regulatory clarification.
Nakiyi called for relevant regulators and industry players to establish clear parameters for digital lenders and ensure that borrowers are protected from charges that fall outside the applicable regulatory framework.
The parliamentary discussion also touched on concerns involving mobile money users and loan deductions, highlighting the need for greater transparency in digital financial services.
Nakiyi’s intervention has brought renewed attention to consumer protection, transparency and compliance in Uganda’s rapidly growing digital lending sector.
For borrowers who increasingly depend on mobile loans for personal and business needs, the debate raises important questions about how loan costs are disclosed, how interest is calculated and how customers can be protected from unfair or unclear charges.
The engagement is part of broader discussions involving lawmakers, regulators, mobile money operators and digital lenders on strengthening oversight while maintaining access to digital financial services in Uganda.
