When Museveni’s family feared abduction in Kenya

The abduction of four-time presidential candidate and opposition strongman, Dr Kizza Besigye and his political associate, Hajji Obeid Lutale Kamulegeya from Kenya last month has rekindled the role that Uganda's neighbour has played in the country's chequered political history.

Besigye and Lutale were kidnapped on November 16 at an apartment in Nairobi, the Kenyan capital where they had gone to meet an associate. The duo was in Nairobi to attend a book launch of a veteran politician Martha Karua. They were driven back to Kampala through the Malaba border and detained at Makindye military barracks. 

Later, they were paraded before the General Court Martial and charged with four crimes related to being found in illegal possession of firearms. But Besigye's arrest from Kenya without following the laid down procedures of either extradition or deportation, has brought back the memory of Kenyan authorities assisting their Ugandan counterparts to illegally arrest and extradite political opponents. 

This practice was commonplace during the reign of President Milton Obote. Among those who feared to be abducted from Kenya where they had sought asylum is none other than President Yoweri Kaguta Museveni's family. 

In her book, My Life's Journey, Janet Kataaha Museveni, now the first lady writes that the reason they had to relocate to Sweden at the height of her husband's war against the government of Obote was because she had got actionable intelligence that there was a plan to abduct her and the children back to Uganda to force Museveni out of the bush.

"As Obote's troops lost ground to the NRA, they got more desperate to find some weak point to leverage against my husband. They thought that if they had the family of Yoweri Museveni arrested, and in custody, in Kampala, they would have the right bait to draw Yoweri out and thus weaken the NRA," Mrs Museveni writes in her book. 

To follow through this, the future first lady writes that in 1983, people came to her gate and rang the bell which was answered by their house help she only identifies as John. John was bundled in a car that sped off with him. Mrs Museveni was then told that those who had abducted John were instead looking for her.

Mrs Museveni said at daybreak, she called her friends; Dr Ruhakana Rugunda and Mathew Rukikaire who were also part of the external wing of the NRM to help her look for John. These two, Mrs Museveni writes, informed her that John was not the only Ugandan who had been kidnapped. They said that Barak Kirya who was the leader of the Uganda Freedom Movement (UFM) had also been abducted and handed over to the Ugandan government at Busia. 

"I was alarmed and shaken by the news. I knew that our enemies were closing in on us and we had to act immediately," she writes. 

She adds that she consulted with a friend of hers who was working at the United Nations High Commission for Refugees in Nairobi who also confirmed that the Kenyan government was working closely with the Obote regime to deport political refugees back to Uganda and that her family was the first on the list.

"Dr Rugunda and Mr Rukikaire helped me to get John released from prison and narrated to me his harrowing account of the night he was kidnapped from my doorstep," Mrs Museveni writes.

"We said goodbye to a few friends because we could not tell many people about our plans to leave. I had initially tried to get entry to England and I called John Kazzora to see if he would help. He explained that the UK government considered Yoweri Museveni a guerrilla and would not give political asylum to his family for fear of being ostracised by the Obote regime. I hung up the phone as if my world was turning upside down," Mrs Museveni said. 

She was later helped to relocate to Sweden in November 1983 even though she did not think it was a good option she had to leave Kenya immediately for the safety of her family.

"It was the first time since leaving Uganda that I did not feel afraid that people knew our name; here it did not matter."  

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30-year-old woman remanded over theft of curtains worth Shs 4bn

A 30-year-old woman, Shamira Nakachwa Mulika has been remanded on charges of theft of curtains worth over Shs 3.7 billion.

Nakachwa, a resident of Bweya Kajansi town council in Wakiso district is jointly charged with four others who were already charged last month. She appeared before senior principal grade one magistrate Winnie Nankya Jatiko and was sent on remand until January 10, 2025, after denying the charges.

Nakachwa had earlier asked to be given a nearer date to appear, but the magistrate informed her that the court's diary was already full. Nakachwa is jointly charged with Hamza Mugumya, a shop attendant resident of Bulwadda Cell in Wakiso district, Yusuf Junior Kiruuta a businessman and resident of Mutundwe Kirinyangabo in Bunamwaya Division, Makindye Ssabagabo, Ivan Zziwa a businessman resident of Namugongo-Mbalwa in Wakiso district, and John Tamale a resident of Kiwanda Jomayi-Seeta, Mukono district. 

The suspects aged between 27 and 29 were charged with four counts including theft and receiving stolen property. The court heard that Mugumya, Nakachwa, Kiruuta and others still large between 2018 and 2022 at Kagule Plaza in Kiyembe, Kampala district and Bweya-Kajansi stole curtain materials, cushions, materials, curtain tapes, curtain pipes, curtain holders, eye lights/curtain rings belonging to Hajji Sulaiman Lwabuuka Kisuule.

Kiruuta, Tamale and Zziwa are accused of having received stolen property including 18 curtain rolls and clothes knowing of having reasons to believe the same to have been feloniously stolen or obtained. They have since denied the charges.

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Prayers can’t stamp out corruption in Uganda - Ggoobi

The permanent secretary and secretary to the treasury, Ramathan Ggoobi, has stated prayers alone can't work to stamp out corruption from Uganda, a vice which continues to stagnate economic growth and service delivery in the country. 

 

Speaking to journalists in Mbarara, Ggoobi emphasized that previous anti-corruption measures such a Ggoobi noted that anti-corruption strategies such as naming and shaming corrupt individuals in the country have too failed to yield progress largely due to protection from corrupt individual friends and their relatives.

"Naming and shaming don't work because those who are corrupt are there to dissolve those who are supposed to name them. That's why sometimes when they arrest the corrupt, people line up in the court, and when they release them, people lift them like they have won medals," said Ggoobi.

Ggoobi told journalists that to address the challenges of corruption, the government have come up with a raft of strategies that work better than prayers. He highlighted that the government is already instituting a strong budgeting system, ensuring heightened performance audits and digitizing the government systems.

Ggoobi noted that digitizing government systems will help minimize the physical cash presence in offices, which has long had corruption tendencies. He said progress was already being made in digitizing the government's procurement processes, a key area of government spending which remains prone to corruption.

"When the people pick the money from the system to pay the contractor, that contractor who builds a hospital, corruption happens between the accounting officer and the supplier. That's the gap that we need to work out so that no cash is withdrawn," said Ggoobi.

Ggoobi boasted that the country's economic progress wasn't due to prayers or good luck but good management. According to Ggoobi, the country's economy increased significantly in the past two years registering a total Gross Domestic Product (GDP) of $53.6 million by the end of June this year with the growth rate standing at 6.1 per cent, the highest in the East African region and the world.

He also noted that inflation which had reached double digits of 10.7 per cent in October 2023 had been reduced significantly to 2.9 per cent with the government's focus remaining committed to ensuring inflation doesn't rise beyond 5 per cent. Lawrence Semakula, the accountant general noted that major reforms in automating the government systems helped to improve financial accountability, transparency and service delivery across the various sectors.

"Before we did these reforms, it was only maybe the head of accounts and the accounting officer who would know how much money had been sent to their account. But now everybody, head of department, you know. So from budgeting to releases, to accounting, to auditing, everything is done on the system and everything is automated," he said.

Semakula noted that the government has heard concerns arising from statutory reports and audits on the weakness of asset management which is now being addressed by the soon-to-be-completed electronic government procurement system. He says that once completed, the automation of the procurement processes will eliminate the challenges in the procurement processes and help to create a good financial management system.

According to the 2021 Inspectorate of Government report on the cost of corruption in Uganda on procurement and budgeting an estimated Shs 614 billion was lost to corruption in procurement in 2019 alone. This is almost two per cent of the total national government spending in 2019.

The Transparency International Global Corruption Index report of 2023 indicates Uganda scored 26 per cent, the same score it earned in 2022 placing the country among the top 30 corrupt countries in the world and fourth in the East Africa region.

 

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Prayers can’t work in stamping out corruption - Ggoobi

The permanent secretary and secretary to the treasury, Ramathan Ggoobi, has stated prayers alone can't work to stamp out corruption from Uganda, a vice which continues to stagnate economic growth and service delivery in the country. 

 

Speaking to journalists in Mbarara, Ggoobi emphasized that previous anti-corruption measures such a Ggoobi noted that anti-corruption strategies such as naming and shaming corrupt individuals in the country have too failed to yield progress largely due to protection from corrupt individual friends and their relatives.

"Naming and shaming don't work because those who are corrupt are there to dissolve those who are supposed to name them. That's why sometimes when they arrest the corrupt, people line up in the court, and when they release them, people lift them like they have won medals," said Ggoobi.

Ggoobi told journalists that to address the challenges of corruption, the government have come up with a raft of strategies that work better than prayers. He highlighted that the government is already instituting a strong budgeting system, ensuring heightened performance audits and digitizing the government systems.

Ggoobi noted that digitizing government systems will help minimize the physical cash presence in offices, which has long had corruption tendencies. He said progress was already being made in digitizing the government's procurement processes, a key area of government spending which remains prone to corruption.

"When the people pick the money from the system to pay the contractor, that contractor who builds a hospital, corruption happens between the accounting officer and the supplier. That's the gap that we need to work out so that no cash is withdrawn," said Ggoobi.

Ggoobi boasted that the country's economic progress wasn't due to prayers or good luck but good management. According to Ggoobi, the country's economy increased significantly in the past two years registering a total Gross Domestic Product (GDP) of $53.6 million by the end of June this year with the growth rate standing at 6.1 per cent, the highest in the East African region and the world.

He also noted that inflation which had reached double digits of 10.7 per cent in October 2023 had been reduced significantly to 2.9 per cent with the government's focus remaining committed to ensuring inflation doesn't rise beyond 5 per cent. Lawrence Semakula, the accountant general noted that major reforms in automating the government systems helped to improve financial accountability, transparency and service delivery across the various sectors.

"Before we did these reforms, it was only maybe the head of accounts and the accounting officer who would know how much money had been sent to their account. But now everybody, head of department, you know. So from budgeting to releases, to accounting, to auditing, everything is done on the system and everything is automated," he said.

Semakula noted that the government has heard concerns arising from statutory reports and audits on the weakness of asset management which is now being addressed by the soon-to-be-completed electronic government procurement system. He says that once completed, the automation of the procurement processes will eliminate the challenges in the procurement processes and help to create a good financial management system.

According to the 2021 Inspectorate of Government report on the cost of corruption in Uganda on procurement and budgeting an estimated Shs 614 billion was lost to corruption in procurement in 2019 alone. This is almost two per cent of the total national government spending in 2019.

The Transparency International Global Corruption Index report of 2023 indicates Uganda scored 26 per cent, the same score it earned in 2022 placing the country among the top 30 corrupt countries in the world and fourth in the East Africa region.

 

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Father kills his two sons after failing to get a job

A 41-year-old man, Mubi Aliwo, has allegedly confessed to killing his two young children after struggling unsuccessfully to find employment.

The tragic incident occurred in Kitukiro village, Bugaya sub-county, Buyende district. According to the police, Aliwo admitted to murdering his sons Thomas Bugembe, aged six, and Praise Kabanda, aged four while returning from Hoima City, where he had sought financial help from his brother but was unable to reach him.

"I killed them...because I was desperate and I didn't know what to do for them," Aliwo said.

Desperation and a tragic decision

Wamala Regional Police spokesperson Racheal Kawala stated that Aliwo explained how his dire circumstances led to the horrific act.

"I separated from the mother of these children because I could no longer fend for my family. Their mother left for an unknown place, leaving the children behind with me. I went to many places including Kayunga district searching for jobs but all was in vain. I later went to Hoima thinking I would connect with my brother but his phone had gone off," Aliwo added.

On his way back from Hoima, Aliwo stopped in Magi village, Kasega parish, Kapeke sub-county, Kiboga district. There, he entered a house under construction, owned by Betty Namuli, where he allegedly poisoned his children.

"I wanted to flee and start another life as a free person," Aliwo confessed.

One local resident reportedly saw Aliwo entering the house with his children and later leaving without them. Suspecting foul play, the witness checked the house and found the lifeless bodies of the children. The alarm raised by the witness attracted other residents, who launched a hunt for Aliwo.

He was captured as he tried to flee, and while some locals attempted mob justice, others alerted the police, who intervened and detained him at Kiboga police station.

According to Kawala, preliminary investigations indicate that Aliwo administered poison to his children, causing their deaths. However, police are conducting a forensic examination to determine the type of poison used and whether the children were subjected to other forms of harm, such as strangulation or suffocation, before poisoning.

The bodies of the children have been taken for a postmortem, and further investigations are ongoing.

"This suspect rested in the house belonging to Namuli Betty together with his children without the owner's knowledge and allegedly administered poison into their mouths, causing instant death," Kawala stated.

This devastating incident highlights the mental and emotional toll of economic hardships, emphasizing the need for community support and mental health interventions for individuals in distress.

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URA goes against corrupt staff, taxpayers

The Uganda Revenue Authority (URA) has revealed plans to legally pursue taxpayers and its staff involved in corrupt practices.

In efforts to eliminate corruption and ensure integrity in tax collection, URA commissioner general John Musinguzi emphasized that integrity is the minimum standard required from all involved in tax administration.

He added that the authority has established an independent department to hold staff accountable on integrity and moral issues, and has made integrity one of its core values. Recognizing the complexity of fighting corruption, Musinguzi reiterated that the authority is committed to tackling the vice relentlessly.

"We are aware that the corrupt fight is not an easy one, but it is one we cannot afford to lose. That's why we have committed ourselves to integrity. Anyone who does not heed this call will face expulsion," he stated.

Musinguzi also pointed out that taxpayers themselves are involved in corruption, as it requires both parties taxpayers and URA staff to perpetuate the vice. To address this, URA is enhancing its verification systems and eliminating non-credible middlemen, also known as container leaders, who have been facilitating tax fraud through misdeclaration and under-declaration. 

These individuals have harmed URA's reputation, and Musinguzi confirmed that they will be removed from the system. In the past four years, URA has dismissed 140 staff members for corruption, with further investigations ongoing. Musinguzi made it clear that agents and taxpayers who facilitate corruption will also face prosecution, as allowed by law.

During an integrity forum with taxpayers, Musinguzi shared that Uganda's tax base has grown from 1.7 million to 4.4 million taxpayers in the last four years, well with a target of 10 million. He emphasized that tax rate reductions will only be considered once this goal is reached. 

"When we get to that number, we will engage the ministry of Finance to recommend lowering tax rates. But discussing tax rate changes now, with a small taxpayer base and minimal revenue collection, is risky," he said.

Charles Ekweu, director general of the Federation of Uganda Customs Agents and Freight Forwarders, acknowledged that some of their members are involved in corruption, as pointed out by Musinguzi. Ekweu stated that the association is working on addressing the issue by developing a code of conduct for members.

He explained that corruption is often initiated by taxpayers, particularly importers, and facilitated by URA staff who create opportunities for the vice. 

"Importers, please stop corrupting our members. Do the right thing. And for URA staff, stop creating opportunities for corruption. Our agents are not decision-makers in the authority," Musinguzi urged.

Paul Mugambe, mayor of Nakawa Urban Division, commended URA for the improvements made in tax administration, particularly in making the tax collection approach more humane. He requested that URA forgive tax arrears for taxpayers who have transformed from evasion to compliance.

"These people are now born again, and we should forgive their past mistakes and move forward," he suggested.

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Court summons Nakaseke chairperson over issuing exams to teachers

The Luwero High court has summoned Nakaseke District LC V chairperson Ignatius Koomu to defend his decision to administer surprise competency tests to teachers in the district.

In March 2024, Koomu, in collaboration with district education officials, conducted mock examinations for 52 teachers to assess their ability to help pupils excel in the Primary Leaving Examinations (PLE). Results revealed that scores ranged from 27 to 92 out of 100.

However, this action sparked outrage among teachers and the Uganda National Teachers Union (Unatu). Through their lawyers, JByamukama and Company Advocates, four teachers - Mathias Mulumba (Timuna primary school), Adam Kuvuna (St. Kizito Kijjaguzo primary school), Phanel Mugisha Godfrey (Nabiika primary school), and John Ssemakula (Nabiika primary school) alongside Unatu, filed for judicial review at the Luwero High court.

The petitioners argue that the tests were illegal, degrading, and could potentially be used to justify disciplinary action or termination of their services. They sought a court declaration that Koomu's actions amounted to harassment and were beyond his legal mandate.

The teachers also requested a permanent injunction barring Koomu and Nakaseke district officials from administering further competency tests or engaging in any acts of intimidation or harassment. Additionally, they demanded compensation for embarrassment and degrading treatment caused by the examinations.

Filbert Baguma, secretary-general of Unatu, supported the petition, emphasizing that the surprise examinations violated the teachers' rights. He argued that Koomu lacked the authority to evaluate teachers' competence, a responsibility reserved for professional education bodies.

In response to the petition, Kenneth Tumwebaze, the assistant registrar of the Luwero High court, issued a summons requiring Koomu and the Nakaseke district government to file their defense. Koomu is expected to appear in court on February 26, 2025, at 9:00 a.m.

Koomu has acknowledged the summons and expressed readiness to defend his actions. He maintains that the tests were conducted within his mandate as the district chairperson and supervisor of government staff.

He insists that the purpose of the competency tests was to identify the reasons behind teachers' underperformance, which says has led to poor results among candidates.

Furthermore, he said, the tests were also intended to engage school management committees and headteachers in addressing these issues. He added that regardless of the case's outcome, he believes his efforts will drive accountability.

The case has drawn significant attention, highlighting tensions between local government officials and educators over accountability and the limits of authority in education management.

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Inside the fight over loans, interest rate cap

The Association of Money Lenders of Uganda has petitioned Attorney General Kiryowa Kiwanuka and Finance minister Matia Kasaija, opposing the recent decision to cap interest rates for moneylenders.

The contentious cap, set on November 8, 2024, limits the maximum interest rate to 2.8 per cent per month (33.6 per cent per annum) under Section 89(1) of the Tier 4 Microfinance Institutions and Money Lenders Act.

REGULATION AND HISTORICAL CONTEXT

Moneylenders in Uganda are regulated by the Uganda Microfinance Regulatory Authority (UMRA) under the 2016 Tier IV Microfinance Institutions and Money Lenders Act. Historically, lenders had the freedom to set their own interest rates, often leading to exploitation, with rates reportedly reaching as high as 240 per cent annually.

President Yoweri Museveni has been vocal about the issue, describing moneylenders as a growing problem.

"They deceive people, charge exorbitant interest rates, and disguise lending contracts to seize property, especially from illiterate borrowers," Museveni said in October, vowing to strengthen legal protections against such practices.

LEGAL AND ECONOMIC PUSHBACK

The rate cap has sparked outrage among moneylenders, who argue that it unfairly targets their industry while overlooking similar practices by commercial banks and other financial institutions. Edgar Ayebazibwe, a lawyer representing the Association of Money Lenders in Uganda criticized the decision as inequitable.

"Moneylenders contribute Shs 1.7 trillion to the economy and provide financial services to those excluded from formal banking," he said.

Ayebazibwe also noted inconsistencies in the government's approach, pointing out that banks and Tier IV institutions charge higher rates, yet moneylenders are restricted. A moneylender, speaking anonymously, echoed these concerns.

"We borrow from commercial banks at 30 per cent per annum, which leaves us with only a 0.8 per cent monthly profit after lending at the capped rate. This margin doesn't cover our operational costs, including taxes, employee salaries and rent," he said.

He also highlighted risks specific to the industry, such as loan defaults, and expressed frustration over the government's focus on licensed moneylenders while ignoring unregulated "briefcase lenders" who exploit borrowers with rates exceeding 50 per cent.

INDUSTRY FRUSTRATION AND WIDER IMPLICATIONS

Jonathan Akandwanaho, chairperson of the Association of Money Lenders in Uganda (AMLU), decried the lack of consultation and warned of the economic implications.

"We are being unfairly targeted while other institutions charge up to 7 per cent monthly. The lending industry, with a turnover of 1.4 trillion shillings and 1,800 registered lenders, serves a significant population," he said.

Akandwanaho also emphasized the industry's role in financial inclusion. With lenders typically aged between 29 and 30, the sector bridges the gap for many Ugandans unable to access formal banking services.

ECONOMIC CONTEXT AND THE PATH FORWARD

Critics of the cap argue that it fails to consider the high operational costs faced by moneylenders and the competitive landscape, where app-based and telecom lenders charge rates between five per cent and eight per cent monthly.

Supporters of the regulation, including President Museveni, see it as a necessary measure to protect borrowers from exploitation. However, the petitioners plan to challenge the cap in the High court and Constitutional court, seeking an injunction against its implementation.

As the debate unfolds, the government faces the dual challenge of balancing borrower protection with sustaining a sector that serves as a lifeline for Uganda's financially underserved populations. The resolution of this conflict could set a precedent for how Uganda navigates financial regulation in the years to come.

The Observer has uncovered that Uganda hosts over 60,000 informal lenders, many of whom many remain in the black market despite efforts by the Uganda Microfinance Regulatory Authority (UMRA) to formalize the sector. The recent cap on interest rates, which limits lenders to 2.8 per cent monthly (33.6 per cent annually), could unintentionally push many of these lenders further underground, according to industry experts.

Some licensed lenders have already scaled back operations, citing financial constraints caused by the cap. Historically, moneylenders have played a crucial role in supporting marginalized groups such as market vendors and schoolchildren, who often face rejection from traditional banking institutions.

CALLS FOR MARKET-DRIVEN SOLUTIONS

Akandwanaho emphasized that interest rates should be driven by market forces. "Let supply and demand dictate the rates," he argued.

"If one company offers loans at 2.5 per cent per month and another at three per cent or four per cent, clients can choose what works best for them."

He pointed to global examples, such as the United Kingdom, where moneylenders charge daily rates of 0.8 per cent. He noted that the lending industry is indispensable, stating, "This industry is here to stay. We are working to formalize it and encourage fair practices through our association."

While he acknowledged the existence of lenders charging exorbitant rates, Akandwanaho argued that such practices are mostly confined to unlicensed lenders. He stressed that banning or over-regulating the entire sector due to a few bad actors would harm the economy and leave underserved populations without access to credit.

ECONOMIC AND REGULATORY CHALLENGES

The interest rate cap could have broader economic repercussions, Akandwanaho warned.

"At the macro level, the financial sector will be affected. Investors considering Uganda may be discouraged by overly restrictive regulations. Where banks decline to lend, we step in to fill the gap," he said.

UMRA has historically denied licenses to lenders offering rates above 10–15 per cent, yet many lenders operate at slightly higher rates to account for risks and operational costs. Akandwanaho noted that while lowering rates is ideal, it must align with market realities.

"It's better to lend at a lower rate and recover your money than to lend at a higher rate and fail to collect," he added.

He also highlighted UMRA's limitations, pointing out that the regulator has only 35 staff overseeing over 1,800 lenders, many of whom operate in remote areas. Akandwanaho criticized the merging of UMRA with the ministry of Finance, describing it as a move that increased bureaucracy and stifled efficiency.

THE NEED FOR TAILORED REGULATION

Akandwanaho stressed the importance of distinguishing between online lenders, financial institutions, and traditional moneylenders.

"Different types of lenders serve different market needs. It's important to categorize and regulate them appropriately," he said.

To address these challenges, He suggested closer collaboration between the government, regulators and stakeholders in the lending sector. He reiterated the association's commitment to formalizing the industry, ensuring fair lending practices, and supporting UMRA's efforts to bring informal lenders into the fold.

MONEYLENDING IN UGANDA

Accessing loans from banks in Uganda depends on a borrower's transaction history, the collateral provided, and the loan amount sought, according to a source who is also a moneylender. The interest rates for such loans are not fixed but vary between 10 per cent and 20 per cent, depending on the perceived risk of the borrower's business and the bank's lending policies.

"The interest rate is negotiable," the source said, highlighting that banks assess risk and collateral to determine the terms of their loans.

THE IMPACT OF MONEYLENDING PRACTICES

The challenges of moneylending extend beyond commercial banks, particularly for those involved in informal or unregulated lending. In August 2023, the speaker of parliament, Anita Annet Among, raised concerns over exploitative practices by some moneylenders targeting members of parliament (MPs).

Among threatened to terminate the memorandum of understanding (MoU) between parliament and certain moneylenders following complaints of harassment and exorbitant interest rates imposed on MPs. She emphasized the financial distress many legislators faced, which often resulted in court battles and public embarrassment.

HIGH-PROFILE LOAN DEFAULTS

Several MPs have fallen victim to severe financial consequences due to defaulted loans. Among them are:
• Robert Mwesigwa Rukaari, who was charged with failing to repay a loan of Shs 700 million.
• Davis Kamukama, who owed Shs 69.1 million.
• Dr. Patrick Mutono, who was remanded for defaulting on a Shs 300 million loan. These cases exemplify the financial strain some lawmakers face and highlight the high-risk nature of money lending agreements.

• Last month, former MP Isaac Musumba was sentenced to six months in prison after failing to repay Shs 160 million borrowed from one Charles Wakwale. Musumba had promised to repay the amount within four days of receipt but failed to fulfil his obligation.

A GROWING CONCERN

The financial difficulties of high-profile borrowers illustrate a broader issue in Uganda's moneylending sector, where high interest rates and strict repayment terms can lead to legal consequences and reputational damage.

The rising trend of borrowers falling into financial distress has prompted calls for tighter regulation and greater transparency in the moneylending business to protect borrowers from exploitative practices.

As parliament reviews its agreements with moneylenders, the debate over fair lending practices remains a pressing issue in Uganda's financial landscape.

A DELICATE BALANCING ACT

The debate over the interest rate cap reflects a larger tension between protecting borrowers and sustaining a vital industry. While the cap aims to curb exploitative practices, it risks sidelining the very lenders who serve Uganda's financially excluded populations.

As policymakers and regulators navigate this complex issue, the focus must remain on creating a balanced framework that ensures borrower protection without stifling the industry's ability to thrive. A collaborative approach, informed by data and stakeholder input, will be key to achieving this equilibrium.

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Kenya's Karua blocked from defending Besigye in Uganda army court

Prominent Kenyan lawyer, Martha Wangari Karua has been denied a practising license by the Uganda Law Council (ULC). 

As such, Karua cannot represent Dr Kizza Besigye in the controversial case before the General Court Martial where he's charged with illegal possession of ammunition and a firearm whilst in Kenya. In a letter dated December 6, 2024, ULC stated that Karua's application was not compliant with the amended Advocates Act, Chapter 295, and faulted her for not adhering to the updated requirements.

It noted, "The application was not brought under the current Advocates Act, and the advocate was not properly advised about the amendment to the Act."

ULC also criticized Kampala lord mayor Erias Lukwago for using a Kampala Capital City Authority (KCCA) email, saying, "It is unethical for a public officer to execute both professional and political work using a public resource."

It further observed that Karua's participation in the case appeared politically motivated rather than professional, particularly in a case it described as "controversial to two East African Community states."

The Council highlighted that Besigye already has a team of over 30 advocates, and there was no indication that Karua would add any unique expertise unavailable in Uganda. Speaking at a press conference at City Hall in Kampala, Martha Karua expressed disappointment with the decision, stating that the accused has the right to choose their legal representation.

"We further take issue that my application did not attach Mr Lukwago's practising certificate. Rather than use this reason to decline my application, one would expect that the Law Council would have asked for additional documents. Mr Lukwago is not only a well-known personality, he's the lord mayor of Kampala but a practising advocate running a law firm. On the issue of whether I bring any special skill, with respect, it is for Dr Besigye and not the Law Council to choose an advocate or advocates of choice," said Karua. 

Lukwago also criticised the Council's decision, saying, that using the non-existence of a protocol as the reason for the denying the free movement of legal practitioners from different jurisdictions, is contrary to the letter and spirit of section 18 of the Advocates Act. Lukwago said that they're going to take appropriate measures and decisions because Besigye and Obeid are exercising their right under the constitution. He insisted that Karua still remains their team leader and that should be known by the state.

Mangareth Nangacovie, a human rights lawyer from Angola also voiced her disapproval of trying civilians in military courts. She described the practice as part of broader governance challenges in Africa and expressed solidarity with Besigye.

"This movement for freedom in Africa is our fight, our contribution against authorities and we hope that our presence can threaten our corporation to Africa as well because Uganda's problems seem to show everywhere even in Angola. So we're here to show our solidarity but also our protest to this savage act of abducting a civilian and bringing him to a military court as an act of intimidation. I hope for us to create this movement across Africa and raise awareness around this case," said Nangacovie.

Despite the Council's decision, Karua vowed to attend Besigye's court appearance in her robes, affirming her commitment to justice and solidarity. She said she would support the defence team in any capacity, even if not as the lead lawyer.

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Bukomansimbi farmers turn to mob justice to combat coffee thefts

Farmers and traders in Bukomansimbi district have resolved to take matters into their own hands in response to a surge in coffee thefts.

Of late, criminals have been raiding plantations, breaking into storage facilities, and stealing coffee beans, prompting residents to propose harsh punishments for suspected thieves.

During a security meeting in Kikuuta trading centre, Kitanda sub-county, residents decided on extreme measures to deter criminal activities including burning vehicles used by thieves during pursuits, confiscating properties of suspects and auctioning them to compensate victims.

Others include punitive actions against brokers found dealing in stolen coffee, including seizing and auctioning their stock. If the suspects lack property for compensation, their families will be held accountable

Additionally, the community has imposed an 8 pm curfew on transporting coffee and livestock and plans to form security teams to patrol villages at night.

The chairperson of Kitanda sub-county, Joseph Kamuli, lamented the inability of the police to address the escalating thefts and other robberies targeting household goods, shop merchandise, livestock, and motorcycles. Some victims have sustained injuries during these attacks.

"We have realized that the situation is beyond the police's control, which requires us to step up our local interventions. In some cases, the public has been let down by the police when it releases known habitual offenders and they continue to terrorize our communities," Kamuli said.

Prominent coffee farmer Francis Ssebwana emphasized the dire impact of these thefts, noting that criminals often damage coffee trees to conceal stolen beans, compromising the quality of coffee meant for export. He believes the community's severe measures will deter offenders.

Despite residents' frustrations, Bukomansimbi deputy resident district commissioner Fred Kalemba Pax cautioned against mob justice. He urged collaboration with security forces, revealing that the district had recently acquired a sniffer dog to help trace criminals.

Kalemba said the district security committee is assessing the situation to provide a lasting solution and called on the community to help arrest criminals and let the law take its course. Kalemba attributed the rise in crime to decreased vigilance, recalling how community cooperation helped reduce murders and other crimes in 2020.

While the community views its actions as necessary to combat escalating insecurity, authorities warn that mob justice could lead to further lawlessness.

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