President Museveni has directed the Attorney General to draft legislation aimed at banning the use of National Identification Cards as collateral for loans by money lenders and other financial institutions.
During a meeting with members of the Central Executive Committee (CEC) of the National Resistance Movement (NRM) at State House in Entebbe, President Museveni addressed several party-related issues. The party’s secretary general, Richard Todwong, presented a report on the recently concluded party registration process, highlighting concerns such as the unlawful practice of money lenders confiscating national identity cards from Ugandans.
In response to these concerns, President Museveni stressed the importance of protecting citizens’ rights and instructed the Attorney General to expedite the enactment of laws to prevent the misuse of national IDs and passports as collateral for loans.
“I appreciate the participation of NRM members in the program,” President Museveni tweeted.
Emmanuel Dombo, NRM’s Director of Information and Publicity, stated, “Many NRM leaders in the villages had offered their national IDs to money lenders. To address this, the president directed the Attorney General to take immediate legal measures to safeguard citizens from such exploitation.”
Godfrey Ssuubi Kiwanda, NRM’s vice chairperson for the central region, expressed satisfaction with the significant turnout, with 18 million NRM memberships registered.
In 2023, lawmakers supported the National Identification and Registration Authority (NIRA) in cautioning money lenders against withholding National Identity Cards as collateral, citing violations of cardholders’ rights to access government services. NIRA emphasized that national IDs are government property and warned against their use as loan security.
The Security Interest in Movable Property Act, 2019, which became effective in March 2019, expanded the range of assets accepted as loan collateral beyond traditional forms such as land and houses. The Act permits borrowers to pledge movable assets like household appliances, treasury bills, livestock, and crops as security for loans. Notably, it allows crops in the field to be used as collateral, granting priority to the lender’s rights under certain circumstances.