Kagadi Authorities Halt Money Lending Operations Amid Property Grab Allegations

Authorities in Kagadi District have taken decisive action following a wave of complaints from local residents who accuse private moneylenders of fraudulent practices and arbitrary property seizures. The Office of the Resident District Commissioner (RDC) has officially halted all money lending operations across the district pending a comprehensive investigation.

The intervention follows a gathering at the district headquarters where dozens of locals camped out to seek help from security agencies and local leaders. Affected residents reported losing businesses, facing wrongful arrests, and risking the loss of family homes and land despite having made substantial repayments on their loans.

Complainants detailed various predatory tactics allegedly used by lenders, including failing to issue repayment receipts, imposing unexplained additional charges after debts were supposedly cleared, and using collateral such as national identity cards, land titles, and sale agreements to forcefully claim valuable assets. Several residents specifically pointed out individuals they claimed had defrauded them through exorbitant interest rates and manipulated court processes.

One local businessman, Augustine Muhereza, recounted being arrested and detained for 20 hours after a dispute over a loan balance, during which time his garage was broken into and spare parts were stolen. Another resident, Leontinah Nakugizibwe, alleged that a lender refused to release her house sale agreement even after she completed her payments, instead producing court papers claiming she had sold her home.

While some accused individuals, such as business operator Ibrahim Mubangizi, have denied involvement in money lending and dismissed the claims as baseless, the scale of the grievances has alarmed local leadership. Kagadi District Chairperson Ellygard Tumusiime noted that roughly 100 people had come forward with similar complaints of exploitation.

In response to the crisis, RDC Caroline Nanshemeza announced the immediate suspension of private money lending activities in the district. She advised residents to seek safer credit alternatives by utilizing local Savings and Credit Cooperative Organizations (SACCOs). Read more about this developing story on the Daily Monitor.