matookerepublic.com
@matookerepublic Wed, 11 Dec 2024 14:00:59
What you need to know about the National High Altitude Training Centre in Teryet, Kapchorwa
President Yoweri Museveni, alongside Education and Sports Minister, First Lady Janet Museveni, has officially inaugurated the National High Altitude Training Centre in Teryet, Kapchorwa District. The facility, located on 75 hectares of land at an altitude of 2,200 meters above sea level, was recognized by World Athletics on March 14, 2023. Designed to elevate Uganda’s […] The post What you need to know about the National High Altitude Training Centre in Teryet, Kapchorwa first appeared on Matooke Republic.
read morekfm.co.ug
@kfm Wed, 11 Dec 2024 12:04:17
ICC suspect ordered murder and rape in Sudan’s Darfur, judges hear
BY REUTERS The International Criminal Court’s chief prosecutor told judges on Wednesday that the suspect in the first trial examining war crimes in Sudan’s Darfur region two decades ago was a feared militia leader who enthusiastically ordered atrocities including murder, rape and pillaging. Ali Muhammad Ali Abd-Al-Rahman, who is charged with overseeing thousands of pro-government Janjaweed fighters during the peak of fighting from 2003-2004, has pleaded not guilty and his defence has argued that he is not the militia leader also known by the nom de guerre Ali Kushayb. In his closing statement, prosecutor Karim Khan said that during the two-year trial, prosecution witnesses had given “detailed accounts of mass murder, torture, rape, targeting of civilians, burning and pillaging of […] The post ICC suspect ordered murder and rape in Sudan’s Darfur, judges hear first appeared on 93.3 KFM.
read morekfm.co.ug
@kfm Wed, 11 Dec 2024 12:27:55
Parents urged to monitor children during school break
The Uganda People’s Congress (UPC) party has urged parents and guardians to take a keen interest in monitoring and shaping the behavior of their children during the long holiday period. Speaking to the media at the party’s headquarters in Kampala on Wednesday, the party’s head of media and communication, Faizo Muzeyi, emphasized the importance of parents dedicating time to their children, listening to them, and providing guidance. “This parenting work is not a role of teachers as they tend to think. A high breed of discipline is expected of the girl child in the holiday,” he said. He added that to prevent idle behavior, children should be encouraged to engage in skillful and productive activities while at home. The post Parents urged to monitor children during school break first appeared on 93.3 KFM.
read morekfm.co.ug
@kfm Wed, 11 Dec 2024 12:49:37
Janet’s secretary testifies in signature forgery case
Lillian Kyobutungi, the personal secretary to Uganda’s First Lady and Minister of Education and Sports, Janet Museveni, has accused a 24-year-old man of forging the minister’s signature. Testifying in court on Wednesday, Kyobutungi stated that she has worked with the First Lady for seven years, handling documents and receiving mail on her behalf. The accused, Kenneth Niwamanya, the executive director of UMOJA Youth Development Initiative Uganda, is alleged to have forged the minister’s signature to solicit funds and support for his organization. Niwamanya had previously visited the minister’s office with a book, requesting patronage. However, it was later discovered that he had forged the minister’s signature on a letter seeking support for his organization. The court heard that Niwamanya used […] The post Janet’s secretary testifies in signature forgery case first appeared on 93.3 KFM.
read moreallafrica.com
@allafrica Wed, 11 Dec 2024 10:02:59
EACOP - Land Acquisition Nears Completion
[Observer] As 2024 draws to a close, Uganda will celebrate a major milestone in its journey towards becoming an oil and gas producer: the completion of land acquisition for key infrastructure projects.
read morekfm.co.ug
@kfm Wed, 11 Dec 2024 10:21:22
NEMA urged to conduct balanced evictions
The National Environment Management Authority (NEMA) has been urged to conduct balanced evictions across the country during restoration processes. This call comes after NEMA conducted an operation in October 2024, resulting in the arrest of 24 individuals who had returned to the Libigi wetland following its restoration. These individuals were charged with wetland degradation under sections 55(1) and 55(6) of the National Environment Act, Cap 181, and were arraigned in court on October 22, 2024, where they pleaded not guilty. However, in an interview with KFM, Andrew Mafundo, Executive Director of Citizen’s Concern Africa (CICO), argued that NEMA should engage with the affected families, compensate and resettle them before proceeding with mandatory wetland restoration. “They were not engaged responsibly before […] The post NEMA urged to conduct balanced evictions first appeared on 93.3 KFM.
read morekfm.co.ug
@kfm Wed, 11 Dec 2024 08:51:29
Sudan again tops International Rescue Committee crises watchlist
BY REUTERS Sudan – for the second year in a row – topped a 2025 watchlist of global humanitarian crises released by the International Rescue Committee (IRC) aid organization on Wednesday, followed by Gaza and the West Bank, Myanmar, Syria and South Sudan. The New York-based IRC began the watchlist more than 15 years ago as an internal planning tool to prepare for the year ahead, but chief executive David Miliband said it now also served as a call to action globally. The report said 305.1 million people around the world are in humanitarian need – up from 77.9 million in 2015 – and that the 20 countries on the IRC watchlist account for 82% of them. Miliband described the […] The post Sudan again tops International Rescue Committee crises watchlist first appeared on 93.3 KFM.
read moreallafrica.com
@allafrica Wed, 11 Dec 2024 06:06:29
Makerere Staff Threaten Fresh Strike Over Appointment Irregularities
[Nile Post] Staff say there is an attempt by the university management to overturn a Senate recommendation for the appointment of Prof Anthony Mugisha as Deputy Vice Chancellor for Finance and Administration.
read moreallafrica.com
@allafrica Wed, 11 Dec 2024 06:31:10
Gen Muhoozi Lauds Uganda-Egypt Partnership in Security and Health Cooperation
[Nile Post] The Chief of Defence Forces (CDF), Gen Muhoozi Kainerugaba, has commended the strengthening partnership between Uganda and Egypt, describing it as vital for regional stability and development.
read moreallafrica.com
@allafrica Wed, 11 Dec 2024 05:04:06
Comedian Reign Wants to Reclaim Lubaga South for the Arts
[Observer] Renowned comedian, musician and teacher Obed Lubega Karim, popularly known as Reign of the duo Maulana and Reign, has announced his candidacy for the Lubaga South parliamentary seat in the upcoming 2026 elections.
read morekfm.co.ug
@kfm Wed, 11 Dec 2024 03:55:41
Ancelotti hopes Mbappe injury not serious after Champions League win at Atalanta
BY REUTERS Real Madrid manager Carlo Ancelotti hopes Kylian Mbappe will not be sidelined for an extended period after the striker paved the way for a 3-2 Champions League win at Atalanta on Tuesday but was forced off with an injury a few minutes after scoring the opener. Real Madrid have endured a series of injuries this season, with several key players missing significant time, including Dani Carvajal and Eder Militao who are out for the rest of the campaign with ACL tears. “Mbappe has suffered an overload, an ischial (lower pelvis) discomfort,” Ancelotti told Movistar Plus. “It doesn’t seem serious, but we’ll see tomorrow after the exams. He couldn’t sprint, it was bothering him a bit and we decided […] The post Ancelotti hopes Mbappe injury not serious after Champions League win at Atalanta first appeared on 93.3 KFM.
read morekfm.co.ug
@kfm Wed, 11 Dec 2024 04:33:53
Festive season: A conversation on road safety, regulations
KFM presents a special discussion on road safety and regulations during the festive season. The host, Patrick Kamara sits down with industry experts: Robert Mutebi, Secretary General of the Uganda Bus Owners Association; Tom Best Alinde, Head of Administration and Public Relations of Link Bus Services; and road safety advocate Joseph Beyanga. Listen to the show below; The post Festive season: A conversation on road safety, regulations first appeared on 93.3 KFM.
read morematookerepublic.com
@matookerepublic Wed, 11 Dec 2024 04:55:45
Malaysia’s Binary University launches Shs5.5 billion grant scholarships for Ugandan Students
Binary University, a renowned institution of higher learning based in Malaysia, has launched the MyBinary International Grant (MyBIG) in Uganda. This initiative follows the successful launch of a similar program in Kenya and India, recently. The announcement was made on Tuesday, December 10, 2024, at the Honorary Consulate of Malaysia in Uganda, located in Kololo, […] The post Malaysia’s Binary University launches Shs5.5 billion grant scholarships for Ugandan Students first appeared on Matooke Republic.
read morematookerepublic.com
@matookerepublic Wed, 11 Dec 2024 05:34:52
Two arrested for stealing motor vehicle number plates and demanding ransom
Police in Mbarara have arrested two suspects in connection with stealing motor vehicle number plates and demanding ransom from the owners. The suspects include Asiimwe Josephat (30), a businessman from Bwambala, Rukungiri District, and Nakunda Javira (34), a businessman from Buremba, Kazo District. It is alleged that the two suspects, during the night of November […] The post Two arrested for stealing motor vehicle number plates and demanding ransom first appeared on Matooke Republic.
read moreobserver.ug
@observer Wed, 11 Dec 2024 04:22:06
Public servants serving with integrity awarded
Dr Mary Munyagwa, a special grade paediatrician and medical superintendentofBwerageneral hospital in Kasese district, emerged is the overall winner in this year’s National Citizens’ Integrity Awards organized by Action Aid Uganda in partnership with Transparency International and the Directorate of Ethics and Integrity. The awards recognize public servants who, in a nation overshadowed by corruption scandals and dishonesty, uphold integrity, transparency and accountability against all odds during their service to the public fostering a corruption-free and sustainable society. When Dr Munyagwa moved to Bwera hospital in 2023, she set systems of the hospital to reduce leakages of resources. She engaged hospital suppliers not to allow giving bribes in a bid to control leakage. She consistently engaged the chief administrative officer on matters affecting the hospital and focused a lot on mentoring her subordinates. As a way of fighting extortion from the patients by the health workers, she printed posters and pinned them around the hospital encouraging the public not to be fooled by cunning health workers and directed that any payment by patients can only be through the private wing of the hospital. Under her leadership, the hospital ranked and improved from the 47th position last year to 27th this year. As a frontline health worker, she has mentored several health workers across the Rwenzori region, especially in paediatrics and neonatal care. She has consistently spoken against corruption and manipulation of public health systems for self-enrichment. While receiving the award presented to her by Justice James Ogoola at Skyz Protea Hotel Naguru, Dr Munyagwa said she was humbled to receive the award and it is a motivation to her. Other winners of the night included former Leader of Opposition Betty Aol Ocan and Bob Owiny, a Soroti district councillor who won the Political Leaders Award category. The award targets politicians including ministers, members of parliament, LC V, LC III and councillors at the sub-national level who have exhibited exemplary leadership. Esther Mugoya Nakhayenze and Andrew Wabweni won in the Management Service Award category. The award targets public servants at the management level including permanent secretaries, parastatal executive directors, senior officers at central government level, chief administrative officers and departmental heads at local governments. Meanwhile, Dr Joseph Epodoi, a senior consultant surgeon and urologist at Soroti Regional Referral hospital, who famously separated conjoined twins, won the best male Frontline Service Award for the second time in a row. {loadposition inarticle}
read moreobserver.ug
@observer Wed, 11 Dec 2024 04:47:12
Will Ugandans reap big after Nandi-Ndaitwah’s presidential win in Namibia?
Last week’s election of Netumbo Nandi-Ndaitwah as Namibia’s new president may have huge implications for Ugandan businesspeople and entrepreneurs, writes MUHAMMAD KAKEMBO. They say luck favours the prepared. Sometime back in January 2024, Netumbo Nandi-Ndaitwah visited Uganda to attend the 19th Non-Aligned Movement (NAM) summit at Munyonyo Convention Centre in Kampala. At the time Nandi-Ndaitwah attended the NAM summit, she was serving as Namibia’s deputy prime minister and minister for international relations and cooperation. However, her attendance did not gain much attention and in many ways, she was just an ordinary delegate. But for Uganda’s shrewd businessmen such as Geoffrey Kirumira, Namibia’s honorary consul to Uganda, and Hamis Kiggundu, her visit was an opportunity to showcase their business acumen to lay a solid platform for expansion of their business interests in Namibia on top of improving the trade relations between the two countries. Nandi-Ndaitwah had already been tipped as a potential successor to outgoing president Nangolo Mbumba; so, the Ugandan business lobbyists provided her with all the privileges of a visiting head of state. Nandi-Ndaitwah secured 57 per cent of the vote to beat nearest rival Panduleni Itula who polled 26 per cent. Her election as the country’s first woman president marked a significant milestone for Namibia and the African continent as a whole, given her strong advocacy for a united Africa, particularly in the realms of trade and business. In the four days she was in the country, Nandi-Ndaitwah toured Kiggundu’s Hamz stadium at Nakivubo. Impressed by the facility, she invited Kiggundu to construct a similar stadium in Namibia. She praised his efforts in developing the stadium using exclusively African resources, a move she said showcases that Africans have the capability to develop their continent. She later toured several business entities around Kampala as top businessmen positioned themselves to tap into her reign when she takes over as Namibia’s president. On several occasions during her visit, she praised the warm bilateral relations and diplomatic ties between Namibia and Uganda, and expressed a keen interest in strengthening commercial diplomacy between the two countries. Nandi-Ndaitwah noted that she has known Kirumira for more than a decade and tasked him to get in touch with the businessmen in both Uganda and Namibia to discuss ways of exploring business opportunities. Reciprocatively, in October, 2024, a delegation of Ugandan businesspeople, led by Kirumira, traveled to Namibia to explore collaborative opportunities with their Namibian counterparts. Namibia President-elect Netumbo Nandi-Ndaitwah (C) with Hamis Kiggundu (L) and Geoffrey Kirumira Nandi-Ndaitwah received the delegation and offered the Ugandan contingent the chance to tap into Namibia’s vast resources and opportunities, particularly in agriculture and tourism. Reached out for a comment, Kirumira praised the foresightedness of Nandi-Ndaitwah to link the Ugandan and Namibian business communities. “First of all, I am very proud that she won the election because she is a revolutionary and believes in the unity of Africa. For the time I have known her, I have found that she has the virtue of planning prudently for the future and wishes the best for African entrepreneurs. We really look forward to boosting the bilateral ties between the two countries,” he said. On his part, Kiggundu said he is already looking forward to expanding his business empire in Namibia. “She has already shown faith in me and there is no better way to show back my faith than investing in Namibia, especially in the agricultural sector which I am very passionate about,” he said. “She has always emphasized the importance of maintaining an open and positive mindset towards new ideas. When I toured Namibia, I assured them that I would return to inspire the youth, promote innovation and entrepreneurship across various sectors. I cannot wait to start.” According to Kirumira, with Nandi-Ndaitwah now confirmed as Namibia’s next president, her leadership is expected to open new doors for Ugandan businesspeople. “Her administration’s focus on economic diplomacy and her proactive steps to engage with Ugandan entrepreneurs signal a promising future for bilateral trade relations. Ugandan businessmen, particularly those like Kiggundu who have already established connections, are well- positioned to capitalize on the emerging opportunities in Namibia,” he said. “Our ventures align perfectly with Namibia’s strategic sectors. Namibia offers abundant opportunities in agriculture, minerals, fishing and tourism—areas where Ugandan businessmen can significantly contribute.” NAMIBIA’S FIRST FEMALE PRESIDENTNicknamed NNN, Netumbo Nandi-Ndaitwah has made history by being elected as Namibia’s first female president. The 72-year-old won more than 57% of the vote, with her closest rival, Panduleni Itula, getting 26%, according to the electoral commission. Nandi-Ndaitwah has been a loyal member of the governing party, Swapo, since she was a teenager and pledges to lead Namibia’s economic transformation. Nandi-Ndaitwah was born in 1952, in the northern village of Onamutai. She was the ninth of 13 children and her father was an Anglican clergyman. Nandi-Ndaitwah joined Swapo, then a liberation movement resisting South Africa’s white-minority rule, when she was only 14. A passionate activist, Nandi-Ndaitwah became a leader of Swapo’s Youth League. While still a high school student, Nandi-Ndaitwah was arrested and detained during a crackdown on Swapo activists. As a result of this persecution, she decided she could not stay in the country and joined several other Swapo members in exile. Nandi-Ndaitwah returned home and subsequently joined the post-independence, Swapo-run government. In the years since, she has held a variety of posts, including ministerial roles in foreign affairs, tourism, child welfare and information. She succeeds Nangolo Mbumba, who stepped up after the death of then-Presi- dent Hage Geingob. In her personal life, Nandi-Ndaitwah is married to Epaphras Denga Ndaitwah, the former chief of Namibia’s defence forces. The couple has three sons. {loadposition inarticle}
read moreobserver.ug
@observer Wed, 11 Dec 2024 05:08:37
Billions lost, trust broken: Bob Kirenga calls for civil disobedience
Fed up with the persistent scourge of corruption and the government’s inability to provide essential social services, Bob Kirenga, executive director of the National Coalition of Human Rights Defenders Uganda, has proposed civil disobedience as a potential strategy for citizens to demand accountability. Uganda loses an estimated Shs 10 trillion annually to corruption, according to the Inspectorate of Government. This figure reflects the deep systemic issues plaguing the nation, with consequences that extend far beyond financial loss. Corruption has eroded public trust in government institutions, slowed down infrastructure development, delayed critical projects, and discouraged both domestic and foreign investment. These failures in governance have left the delivery of vital social services inadequate, with consequences that often include the ultimate tragedy: loss of life. The 2023 Corruption Perceptions Index (CPI) ranks Uganda 141st out of 180 countries, with a score of 26 out of 100—signalling high levels of public sector corruption. The CPI measures perceived corruption globally on a scale where zero indicates severe corruption and 100 reflects a clean public sector. A CALL FOR CIVIL DISOBEDIENCE In an interview with The Observer, Kirenga expressed frustration with the state of governance, calling for bold measures to address the crisis. “It’s high time we had a brutal discussion about the state of governance,” he said. “We may need to consider civil disobedience, where people dissatisfied with the lack of government response refuse to work or pay taxes until meaningful change is achieved. It’s a tough decision, but it may be necessary.” Kirenga emphasized the need for collective advocacy to support marginalized groups which suffer the most from poor governance. “If we only look out for our own selfish interests, we risk fostering a society filled with unrest. The gap between the rich and poor is vast, and many cannot meet their basic needs,” he warned. POLICY FAILURES AND MISMANAGEMENT Kirenga pointed to systemic failures in resource allocation, even when ministerial policy statements precede the national budget. He expressed skepticism that 40 per cent of the budget reaches its intended causes, as much of the funding is misappropriated. “This is a direct result of poor governance and corruption,” he said. Despite the Uganda Revenue Authority (URA) consistently meeting revenue collection targets, concerns persist about how these funds are utilized. Instances of diverted or misdirected funds are common, yet the institutions responsible for oversight often evade accountability. Kirenga called for stronger mechanisms to track public spending and enforce accountability. “Without clean, accountable leadership, Uganda risks further decay,” he cautioned. A LEADERSHIP CRISIS At the heart of Uganda’s corruption problem, Kirenga argued, is a leadership crisis. He criticized the concentration of power in the hands of a few individuals who, he claimed, disregard the needs and aspirations of the majority. “We do not have a government that truly listens to the people’s needs or addresses their aspirations. Instead, a small clique holds power, undermining the country’s future,” he said. A CALL FOR A HUMAN-RIGHTS-BASED APPROACH The allocation of resources in Uganda fails to reflect a human-rights-based approach, argues Bob Kirenga. Principles such as participation, accountability, non-discrimination, empowerment, and the rule of law should guide resource distribution, yet they remain sidelined in national budgeting. Kirenga emphasizes that resource allocation must prioritize marginalized groups and the poorest members of society. “You can’t spend money repairing roads or building new ones in newly developed areas while some communities have never seen a paved road,” he said. He also highlighted the injustice of prosecuting a 72-year-old homeless woman instead of addressing the systemic failures that led to her homelessness. “The state is obligated to respect, protect, and fulfill human rights,” he added. According to Kirenga, Uganda’s governance issues—not a lack of resources— are to blame for the inequitable distribution. “The resources available in Uganda are enough to ensure fair and equal distribution if used correctly,” he said, calling for a shift in priorities ahead of the 2025/2026 budget cycle. YOUTH AND HEALTH AS PRIORITIES Kirenga stresses that health and education must take precedence in Uganda’s budgeting process, especially given the country’s demographics. With a population of 45.9 million, 70 per cent of whom are under the age of 30, young people should be at the center of national development efforts. “A country’s wealth is not measured by its minerals or oil reserves but by the skills and potential of its citizens. If we invest in human capital, ensuring that both boys and girls receive quality education, the rest will follow,” he explained. Kirenga argues that prioritizing health and education is essential to unlocking the nation’s potential, yet current resource allocations do not reflect these critical needs. THE NEED FOR SYSTEMIC TRANSFORMATION Uganda’s leadership lacks commitment to transforming the lives of its citizens, Kirenga said, calling for a shift toward fairer resource distribution. “Fair distribution means creating opportunities for young people and providing real jobs—not sending them to work as housemaids,” he stated. He criticized the current focus on resource allocation, which he believes neglects the empowerment of citizens. Instead, investments should be made in education, health, and primary healthcare to ensure sustainable development. Kirenga also pointed to a deeper governance problem: institutional inefficiency and duplication within the executive branch. “Ministers, permanent secretaries, and other leaders are failing to do their jobs,” he said. Duplicated institutions waste resources that could otherwise support key national priorities. Even the anticipated discovery of oil in the Albertine region will not solve Uganda’s problems, Kirenga warned. “If the country doesn’t have its priorities straight, oil revenues will be squandered, and we will continue lamenting our misfortune,” he said. A CALL FOR CHANGE For Kirenga, the path forward lies in addressing governance issues and focusing on equitable resource distribution. Uganda’s future wealth and prosperity depend on its ability to invest in its people—especially the youth—by prioritizing health, education, and economic opportunities. Without a transformative approach, the nation risks further institutional decay and missed opportunities for progress. A SOCIETY AT A CROSSROADS Kirenga’s call for civil disobedience reflects growing public frustration over Uganda’s governance and corruption issues. With billions lost to mismanagement, citizens are left to grapple with inadequate infrastructure, poor social services, and deepening inequality. His proposal for bold action, including refusal to pay taxes and work, seeks to inspire collective responsibility and force a reckoning with the government. Whether Ugandans will heed his call remains uncertain, but the underlying issues of corruption, mismanagement, and poor leadership demand urgent attention if the country is to secure a brighter future. {loadposition inarticle}
read moreobserver.ug
@observer Wed, 11 Dec 2024 04:29:26
New factory to transform coffee sector in Bugisu
Odrek Rwabwogo, Chairman of the Presidential Advisory Committee on Exports and Industrial Development (PACEID), has launched the Balambuli Kwigate Coffee (BKC) Limited processing factory in the Bugisu sub-region. The multibillion-shilling facility, located in Busoba sub-county on the outskirts of Mbale City, is an indigenous initiative aimed at processing and exporting over 300 tonnes of coffee to markets in Europe, Asia, and other major coffee-consuming regions. For the past three years, BKC has been working closely with local farmers to improve coffee quality while sharing the proceeds with the community. The company aims to expand its market reach and enhance farmers’ incomes in the region. Sourced from the fertile slopes of Mount Elgon, the coffee is grown by more than 2,000 trained farmers across four sub-counties in Bulambuli district, as well as neighbouring districts. The company processes the coffee through a detailed process of washing, pulping, fermenting, drying, and then exporting it to global markets. To maintain high quality, coffee processing includes pulping by machines, fermenting for 12 to 72 hours, and washing at an established wash station. The coffee is then dried on raised beds for 21 to 28 days, depending on the weather conditions. The company has already secured a market for its fermented coffee in Saudi Arabia. Rwabwogo said that transforming Uganda’s economy from a peasant-based system to a manufacturing economy is a long-term process, but the first steps are crucial. “We are working hard to ensure that we process or roast locally. Whether it is coffee, milk, beef, or chocolate, there is a significant gain of around 15% to 18% from sourcing raw materials locally,” he said. For Uganda to remain competitive in trade, Rwabwogo stressed the need for improved transportation infrastructure, including affordable air transport for goods, large ships on lakes and rivers, and an efficient railway system for heavy cargo. “We need 2,800 kilometres of railway to connect key areas like Kasese and Nimule, revitalize the Pakwach line, and improve cargo transportation on our lakes. With multiple transport options, production costs will go down,” he added. Rwabwogo also highlighted the importance of improving farmers’ knowledge of market needs and consumer preferences. “It’s not enough to simply grow coffee. Farmers must understand the market so they can collaborate effectively with roasters and transporters. By cleaning, de-stoning, and drying coffee properly, farmers can improve the quality and secure better prices. Quality is a continuum, not just about what you get today, but about maintaining and improving quality over time.” he said. He said Uganda produces and exports 500,000 tonnes of coffee, but still imports 40,000 tonnes of roasted coffee. We export raw coffee and import low-quality roasted coffee. We have partnered with Serbian entrepreneurs to roast 6,000 tonnes of coffee in Entebbe for export to European markets. CEO’S VISION FOR THE FUTURE Bernard Mukhone, CEO of Balambuli Kwigate Coffee (BKC) Limited Coffee processing factory said the initiative is a generational enterprise with a vision that extends beyond the next 100 years and beyond $100 billion. “The launch of BKC marks the first step in roasting coffee for local consumption. Our roaster will supply specialty coffee houses across Uganda, delivering authentic coffee from Mount Elgon. Local consumption will help improve productivity at the farm level, providing a strong foundation for economic growth in Uganda,” he said. Mukhone plans to leverage the East African Community (EAC) market, which allows for the free movement of goods, to export products to neighbouring countries and they have already laid out strategies to tap into the African continental market. Hussein Hirji of Darley Investments Limited described the BKC facility as more than just a processing plant but a symbol of progress and commitment to empowering farmers. “We are connecting farmers directly to the market, and their exceptional coffee will continue to give them better returns,” he said. As part of its future plans, Makhone intends to establish a coffee school to help farmers improve their skills, boost yields and long-term sustainability of the coffee industry in Uganda and the region. “Darley Investments Ltd is a valued and strategic partner of BKC. Together we have managed to produce excellent specialty and commercial coffees as well as setting up this facility. Many thanks to the vision bearer Ali Thobani and the entire Darley family.” geofreyserugo1992@gmail.com {loadposition inarticle}
read moreobserver.ug
@observer Wed, 11 Dec 2024 05:32:20
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 CONTEXTMoneylenders 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 PUSHBACKThe 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 IMPLICATIONSJonathan 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 FORWARDCritics 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 SOLUTIONSAkandwanaho 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 CHALLENGESThe 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 REGULATIONAkandwanaho 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 UGANDAAccessing 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 PRACTICESThe 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 DEFAULTSSeveral 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 CONCERNThe 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 ACTThe 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. {loadposition inarticle}
read more