Kagadi suspends moneylending after residents say lenders are seizing homes and land

Authorities in Uganda's Kagadi district have stopped moneylending operations pending investigations after residents complained of losing homes, land and businesses to lenders over disputed loan repayments.

The Resident District Commissioner, Caroline Nanshemeza, said she had received many complaints from residents and that the activities had been stopped until deeper investigations are complete. She urged residents to borrow through local savings and credit cooperative organisations instead of dealing with individual lenders. Kagadi district chairperson Ellygard Tumusiime said he had received complaints from about 100 people.

Residents who camped at the district headquarters last Friday said some lenders imposed additional charges after borrowers had cleared their debts, withheld receipts and used land titles, national identity cards and property sale agreements as leverage to take control of assets.

Businessman Augustine Muhereza said he borrowed Shs3.9 million in March 2026, received Shs3.8 million after a Shs100,000 processing fee and repaid Shs5 million in May, only to be asked for a further Shs2.8 million. He said he was held in police custody for 20 hours and that thieves took spare parts from his garage while he was away. Leontinah Nakugizibwe said she borrowed Shs1 million, handed over two national identity cards and a house sale agreement as security, and later received court papers claiming she had sold the house to the lender for Shs7 million.

Ibrahim Mubangizi, whom several residents named, denied the allegations and told Daily Monitor that he does not deal in money lending and only operates hotels, adding that his accusers should table evidence. The district security committee says it will work with the Criminal Investigations Directorate to handle the complaints.