School of Law (S.Law)

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Browsing School of Law (S.Law) by Author "Arinda, Joan"
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    Lending in the shadow of the law: an examination of the effectiveness of the tier 4 microfinance institutions and money lenders act cap 61 in regulating money lending business in Uganda
    (Makerere University, 2025) Arinda, Joan
    This dissertation examines the effectiveness of the Tier 4 Microfinance Institutions and Money Lenders Act, Cap 61, in regulating the money lending business in Uganda. Despite the Act's intention to provide a legal framework for money lending business in Uganda, there are still concerns regarding its effectiveness and impact. The money lending business continues to occur largely outside the boundaries of the law, which often exposes borrowers to unregulated and often exploitative practices. This study delves into the operational realities of the money lending business and analyses whether the Act has fully achieved what it set out to do. It investigates whether illegal money lending transactions persist despite the Act, and the degree of compliance among money lenders. The research further interrogates the role of the Uganda Microfinance Regulatory Authority (UMRA) in implementing the Act and the extent to which its oversight has influenced the conduct of money lending business in Uganda. This study employs a qualitative research approach to get an in-depth understanding of the effectiveness of the Tier 4 Microfinance Institutions and Money Lenders Act, Cap 61 in regulating the money lending business in Uganda. Data was primarily collected through semistructured interviews conducted with key stakeholders, including lawyers, judicial officers, bailiffs, money lenders, borrowers, and officials from the Uganda Microfinance Regulatory Authority (UMRA). The research also involved a documentary review of relevant laws, policy documents, reports, decided cases and academic literature on the subject of money lending business. The dissertation concludes that while the Tier 4 Microfinance Institutions and Money Lenders Act, Cap 61 provides a foundation for regulating the sector, its implementation is hindered by weak enforcement mechanisms and insufficient borrower protection. It recommends for stronger regulatory oversight, public sensitization, and improved institutional collaboration to ensure that money lending practices align with the law and safeguard the interests of lenders and vulnerable borrowers. Keywords: Lending law, Money lending