Minister of State for Microfinance Shartsi Kutesa Musherure has appealed for tighter regulation of digital lending platforms to shield borrowers from exploitative practices while financial inclusion keeps growing across Uganda.

She delivered the appeal at a two-day retreat that brought together the Ministry of Finance, Planning and Economic Development and Parliament’s Committees on Finance, Planning and Economic Development, National Economy and National Budget at Speke Resort Munyonyo.

Kutesa observed that the swift expansion of digital lending offers both opportunities and obligations for the Government and regulators to ensure that wider access to credit does not leave borrowers vulnerable to abuse.

“We must strengthen supervision, improve SACCO governance, protect borrowers from exploitative lending practices and close gaps in the regulation of digital lending platforms,” Kutesa said.

She pointed out that Uganda’s financial inclusion rate rose from 70% in 2009 to 81% in 2023, while the Second National Financial Inclusion Strategy aims for 85% by 2028.

According to the minister, mobile money, SACCOs and Village Savings and Loan Associations (VSLAs) have been major drivers of this progress.

She nevertheless insisted that expanded access to financial services must be matched by responsible lending, solid governance and robust consumer protection.

“Increased access must go hand in hand with responsible lending, strong governance, consumer protection and effective regulation—especially as digital lending continues to expand,” she said.

Kutesa added that the growth of Uganda’s Tier IV microfinance sector demands more rigorous oversight, particularly as increasing numbers of citizens turn to digital platforms as well as informal and semi-formal credit sources.

She stressed that tackling these issues will need both legislative measures and budgetary backing to reinforce supervision and fill existing regulatory gaps.

The minister also highlighted Government initiatives such as the Parish Development Model (PDM) and Emyooga, noting that they continue to widen access to affordable finance and economic opportunities for millions of Ugandans.

At the same time, she urged greater focus on sustainability, monitoring and loan recovery so that these programmes produce lasting economic transformation.

“These priorities require both legislative and budgetary support,” Kutesa said.

She described the retreat as a chance for Parliament, the Ministry and technical teams to build a common understanding of their respective roles ahead of the next budgeting cycle.

“Strong institutions work best when they communicate, coordinate and hold one another accountable,” she said.