Uganda’s microfinance sector’s regulator, the Uganda Microfinance Regulatory Authority (UMRA), has protested a plan by the government to move it into the Ministry of Finance.
- The regulator was established by the Tier 4s and Moneylenders Act 2016 as an independent body.
- A new bill before the country’s parliament now seeks to rationalise the structure of government agencies, including moving UMRA to Treasury.
- The regulator now says its work will not be carried out effectively within the ministry.
“UMRA’s unique role in safeguarding the public against adverse consequences resulting from non-compliance, coupled with its notable contributions to the government’s long-term revenue generation underscores the necessity for its continued autonomy,” Edith Tusuubira, Executive Director UMRA, told a parliamentary committee.
The move has received mixed reactions from parliamentarians, who have been asked to process the bill within days.
“Globally, regulators who are able to set rules independently are more likely to be motivated to enforce them,” Tusuubira added.
