Share this article

In order to protect market vendors from dishonest moneylenders, Government of Uganda has introduced a new loan scheme called the “Katale Loan product”, that will allow the market vendors to borrow money at low interest rates of only 3%, which will be done through the Microfinance Support Centre (MSC).

The Katale Loan product will enhance the Emyooga program already in place, market vendors wereurged to join the program and take advantage of the opportunity to borrow money at cheap interest rates rather than paying higher rates to moneylenders. The Katale Loan product will help people who might not have benefited from the Emyooga program acquire financing to grow their enterprises.

A market vendor will only be needed to pay interest of Sh30,000, with each loan to be repaid in three months. It will have the lowest interest rate in the nation at only 3% for the duration of the loan.

Haruna Kasolo pointed out that MSC receives a lot of funding from President Yoweri Museveni to assist lift people out of poverty, and that it is this funding that he wants market sellers to use to expand their operations.

He claimed that after beginning with market vendors, he will thereafter turn his attention to arcade traders, who will also profit from the same investment.

The mayor of Kampala Central division, Salim Uhuru, urged market vendors to support the new initiative and make sure they escape poverty.

Why do you still live in poverty in Kampala while the government is giving out money to help people escape it? “I’ll see to it that people take these programs seriously so they can grow, especially in Kampala Central,” he stated.

Since the President and the minister are unable to be everywhere at once to oversee the programs, Uhuru requested that the government engages local leaders to promote such initiatives.

Since the local council chairpersons are familiar with the traders who run the booths, Kasolo stated that the program will be carried out by them in the market regions.

In order to assist in the administration of the program, he vowed to choose young people from the markets who will be associated with the MSC.

We want a group of 30 market vendors to come together. The people who will suggest someone who wants to borrow will be the other group members.

Every evening, the designated money-collecting agents will circulate the markets in search of borrowers to collect money from.

Kasolo also urged the leaders of the Emyooga savings and credit co-operative societies (SACCOS) not to stop anyone from joining their SACCOS because the government allocates funds for the development of all Ugandans, regardless of their political allegiance. Money belongs to all market vendors, not just the leaders.

A merchant in Nakasero Market named Sarah Twebaze praised the government of Uganda for the Emyooga program, which had given her the opportunity to save money, expand her business, and provide for her family.

“I serve as the Emyooga association’s chair in this market. I’ve been borrowing and conserving money, and now that they’ve introduced this loan scheme that allows me to borrow on my own at cheap interest rates, I think I’ll be able to expand my business even more,” she added.

Fruit vendor Peter Ssebufu said that although the government frequently creates effective programs to help people escape poverty, local leaders frequently make it difficult for people to take use of those programs.