June 14, 2024

UMRA concerned about hiked SHG registration fees

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The Uganda Microfinance Regulatory Authority (UMRA) officials are concerned about the hiked non-uniform registration fees for self-help saving groups (SHGs) across the country.

UMRA spokesperson, Mr. Edward Bindhe, says they have received complaints that each district charges its own registration fees ranging from Shs60,000 to Shs150,000, and this may be considered high by some self-help groups.

Bindhe told our news reporters that “we have registered a public outcry that some local governments are charging exorbitant fees. For example, here in Luweero, some people are saying they are charging $60,000 per registration. In West Nile, some people were complaining that they were charged one hundred thousand. So, what is happening is that through the Ministry of Finance, we notified the Ministry of Local Government to get guidance on how we can implement a uniform fee for all the local governments.”.

In 2022, UMRA issued operational guidelines for SHGs as defined under Section 99 of the Tier 4 Microfinance Institutions and Money Lenders’ Act, 2016.

In conclusion, the objectives of the guidelines were to assist self-help groups in establishing financial stabilization mechanisms and to increase transparency. However, he says they have embarked on sensitizing SHGs regarding the same.

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written by @enock katamba

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