Minister Namuganza Denounces Banks' Property Seizures

State Minister for Lands, Dr. Sam Mayanja, has issued a stern warning to banks and other financial institutions regarding their methods of property seizure.

Dr. Mayanja expressed deep dissatisfaction with the way lenders are repossessing properties, particularly those that have been developed by citizens. He described these seizures as “ugly and inhumane,” suggesting that the current practices are causing undue hardship and distress to property owners.

The Minister’s remarks come amid growing concerns about the increasing number of Ugandans losing their properties due to loan defaults. While acknowledging the necessity for financial institutions to recover their funds, Dr. Mayanja emphasized that the process should be conducted with a degree of fairness and respect for the individuals involved.

He indicated that the government is observing these developments closely and is prepared to intervene if necessary to protect the interests of property owners. The Minister urged banks to explore alternative avenues for debt recovery that do not involve the immediate and harsh seizure of assets, especially when significant investments have been made in developing the properties.

Dr. Mayanja’s statements highlight a potential conflict between the rights of lenders to secure their investments and the welfare of borrowers, particularly in cases where properties represent substantial personal investment and security.

This intervention by the Minister signals a potential shift in how property repossession is viewed and managed within Uganda, aiming for a more balanced approach that considers the human element in financial transactions. The Ministry of Lands is expected to engage further with financial sector regulators and stakeholders to address these concerns.

https://www.monitor.co.ug/uganda/news/national/namuganza-warns-banks-over-ugly-and-inhumane-property-seizures-5549422