BoU, UIA Embark On Public Sensitisation On Underperforming Recovery Funds – Plus News
The Uganda Investment Authority and the Bank of Uganda have started on a campaign to popularize the small and medium enterprise credit funds that were meant to help lower-income entrepreneurs out of the effects Covid-19 pandemic.
There have been consistent reports that the Small Business Recovery Fund (SBRF) and the Agricultural Credit Facility have not been embraced by the intended beneficiaries and the expectations not been met.
According to the Bank of Uganda, by the end of January 2024, less than 10 billion shillings from the SBRF had been disbursed to beneficiaries, out of the 200 billion that was set aside by the government and partner banks in 2022.
The money meant for the small businesses employing between two and 49 persons, is managed by BoU and disbursed through commercial banks.
According to BoU, less than a third of the 33 regulated financial institutions were ‘actively participating’ in the management of the fund.
And of the 800 billion shillings under the Agricultural Credit Facility, so far only 3,744 beneficiaries have accessed the funds, hence the need for more awareness creation on access to the funds.
The authorities have been puzzled by the low uptake of the facilities which carry an interest of 10 percent per annum, just slightly more than half of the open market price for credit.
Michael Atingi-Ego, the Deputy Governor BoU said the ACF was meant for micro, small and medium enterprises (MSMEs) to acquire things like equipment for farming, post-harvest handling and value addition, among others.
This was at the awareness workshop on affordable financing for small businesses and commercial farmers in the southwestern district of Rukungiri, where he was represented by the Executive Director of Finance, Richard Byarugaba.
He said that although small businesses are key to Uganda’s economic growth, their major constraint is access to affordable credit, hence the creation of the two funds – SBRF and ACF.
The fund offers up to 2.1 billion shillings repayable in eight years (maximum), with a grace period of three years (maximum) and an interest rate of 12 percent per annum.
The SBRF provides affordable financial loans to small enterprises that have experienced hardships due to the measures undertaken to control the spread of the coronavirus in Uganda.
Eligibility is for small businesses operated by individuals, groups, partnerships, and companies, employing between 2-49 people and with an annual turnover of 10 to 300 million shillings, with a demonstrable capacity for recovery.
Private sector leaders have accused the financial institutions of ‘hiding’ the programs and instead selling to the public, their products which are usually more expensive.
The Chairman of Uganda Investment Authority, Morrison Rwakakamba, said the workshop on access to affordable financing is an eye opener to the business community and farmers in Uganda on funding opportunities offered by the government.
“Rukungiri is strategically located near the Eastern Democratic Republic of Congo and has enabling infrastructure like roads and electricity. These are opportunities and enablers that the business and farming communities should seize and exploit for investment and business”, said Rwakakamba.
The Rukungiri District LCV Chairperson, Geoffrey Kyomukama, urged the people to use the funds to boost commercial farming by investing in things like irrigation schemes, post-harvest handling, cold storage facilities, and transportation of produce, amongst others.
“My people let’s move with new development strategies. The time is now when you should arise with your group and family to share in national wealth. Take advantage of available investment opportunities”, said Kyomukama.
The access to affordable financing workshops, already also held in Arua and Mbarara, are being rolled out to other parts of Uganda in an attempt to increase the uptake of the central bank-managed funds.
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Open Letter to the Ministries Affected by the Suspension of USAID Funds in Uganda » The Hoima Post –
To: The Honorable Ministers of Finance, Health, Education, Gender, and All Affected Ministries
Cc: The Office of the President, Parliament of Uganda, and Development Partners
Subject: Addressing the Suspension of USAID Funds and Allegations of Misallocation
Dear Honorable Ministers,
I write to you with deep concern regarding the recent suspension of USAID funding to Uganda and the allegations raised by President Donald Trump about Uganda receiving substantial funds for projects lacking clear justification, including those termed as “behavioral and social change” initiatives. These developments not only jeopardize the continuity of essential development programs but also necessitate a critical examination of our financial accountability and sustainability mechanisms.
For decades, Uganda has benefited from USAID support across various sectors, notably health, education, agriculture, and governance. However, the recent suspension of funds underscores the vulnerability inherent in our dependence on foreign aid, particularly when such aid is subject to abrupt policy shifts. The allegations concerning the allocation of funds to ambiguous projects demand immediate attention to uphold the integrity of our development agenda.
Key Issues of Concern:
1. Aid Dependency and Sovereignty: The suspension of USAID funding highlights Uganda’s over-reliance on foreign aid, which undermines our sovereignty in determining and implementing development priorities. It is imperative to cultivate self-reliant strategies that reduce susceptibility to external political dynamics.
2. Transparency and Accountability: Allegations of misallocated funds necessitate a thorough audit to ensure that all financial resources are utilized effectively and align with national development goals. This process is crucial to maintain public trust and the confidence of development partners.
3. Impact on Critical Sectors: The affected ministries must assess and communicate the potential disruptions in service delivery resulting from the funding suspension. Proactive measures should be developed to mitigate adverse effects on health services, educational programs, and other essential public services.
4. Alignment of Development Priorities: It is essential to ensure that donor-funded projects correspond with Uganda’s strategic development objectives. Projects lacking clear justification or tangible benefits should be re-evaluated to optimize resource allocation.
Way Forward:
Comprehensive Audit: Conduct a detailed audit of all USAID-funded programs to identify any discrepancies and implement corrective measures where necessary.
Strengthening Domestic Funding: Explore and implement strategies to enhance domestic revenue generation, thereby reducing reliance on foreign aid and ensuring sustainable funding for critical sectors.
Engagement with Development Partners: Initiate constructive dialogue with USAID and other donors to rebuild trust and ensure future funding aligns with Uganda’s development priorities.
Enforcement of Accountability Measures: Hold accountable any individuals or entities found responsible for mismanaging funds to reinforce a culture of transparency and responsibility.
This situation presents an opportunity for Uganda to reassess its development strategy and assert greater control over its future. While foreign aid has contributed to national development, it should complement, not dictate, our agenda. By taking decisive action to ensure effective and transparent use of all resources, we can foster a more self-reliant and resilient nation.
Sincerely,
Alexander Luyima
Director, Community Programs & Information
African Descent Ontario
Toronto, Canada
https://hoimapost.co.ug/open-letter-to-the-ministries-affected-by-the-suspension-of-usaid-funds-in-uganda/
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By Our Reporter
A family in Katabi Sub County, Entebbe Municipality in Wakiso District is living in shock after a section of its members have been implicated in rebel activities but asked to surrender part of their ancestral land to State House Land protection Unit officials led by Brig Gen Moses Lukyamuzi as a condition to be set free.
The family of the late Charles Kisitu Ffulu has now appealed to President Museveni and all authorities to intervene and prevail over the security officials who allegedly arrested, tortured and detained them on purported rebel related charges before demanding for a one and a half acre land at Nkumba – Bbendegere in Katabi Sub County.
The family members have accused the State House Land Protection Unit officials of opening up rebel and terrorism related charges and started demanding for a one and half acre plot of land and the estate administrator, Willy Kisitu.
It is alleged that high profile security officials working with a section of police officers and local leadership with land brokers have since started to bring pseudo buyers and superimpose them on the family ancestral land at Nkumba – Bbendegere in Katabi Sub County.
Family members said that the pseudo people come with forged sale or purchase agreements which they present and upon challenging them, they are arrested and taken to police for criminal trespass and threatening violence cases.
It is alleged that the officials come purporting to help the pseudo bibanja holders for their selfish benefits.
On February 26, 2025, a group of armed soldiers both in uniform and plain clothes invaded the land and arrested the caretaker of the land, Ivan Ntege and two of his workers; Paul Mukisa and Abbas Senabulya.
It is alleged that the three men were kept in a nearby bush before they were driven in a drone to Mengo, in Kampala at the offices of the State House Land protection Unit.
Ntege, who is now nursing his right eye, said that the land measuring about seven acres belongs to the family of the late Charles Kisitu Ffulu but there is a cartel of unscrupulous persons who are using all the tricks to grab their land.
“I was arrested by soldiers who beat me and my workers; they tortured us while accusing us of forming a rebel group. Imagine they found us working on our land and they started asking for pangas accusing us of belonging to the M23 rebel group, that we are of Rwandese origin, and that we have to explain when we entered Uganda,” Ntege cried.
He added: “Imagine asking where I came from when they found me on the land where I was born and raised? They found us using walkie Talkies because the telephone network near the lake is bad and they used that as a basis to beat us and ask for the administrator of the land.”
According to Ntege, their arrest was disguised as if there was a case but to their surprise the soldiers did not even report to the area police and not even the Police in Entebbe but they were driven to Kampala amid beatings.
“Upon reaching Mengo, they (soldiers) subjected us to interrogation mainly on our tribes and asking us how the Rwandese came to the land and more so one of the soldiers said Ntege leero tukufunye (Ntege we have got you) and we are going to imprison you for a month until you sign for us an agreement,” he narrated.
He revealed that they were paraded before Brig Lukyamuzi at Mengo but he did not mention anything but the soldiers continued interrogating them until they called another man they identified as counsel who asked them to sign a sales agreement for land in order to be released.
Ntege added that from Mengo they were driven to Kireka SIU by the soldier identified as Amudan Mukiibi kept threatening to kill them and that to their surprise, the following day, the head of the detention facility at Kireka released them and gave them transport.
“The soldier at Kireka sent us back to Mengo to pick our property but on reaching there, everyone abandoned us and they instead decided to make telephone calls until they rearrested us and took us back to Kireka instead of giving us our property. We were driven back to Kireka and accused us of overthrowing the government,” said Ntege.
He said that the detention head they identified as Musa told them that Afande Ddamulira (head of crime intelligence) ordered for their release and that they were released without any documentation but ordered to return to the Mengo office on March 21.
“We are wondering, if there is a case against us, why then are they asking us to sign land sale agreements and present them to the administrator who does not stay in the area? And they said on March 21, there will be a meeting but for what? I appeal to the State House Anticorruption Unit and Criminal Investigations and CMI to intervene in this matter,” he appealed.
Ntege revealed that the soldiers are working with a relative identified as Patrick Kisitu and a former family lawyer Fahad Wasswa with a host of brokers to disenfranchise them of the land ownership.
On his part, Mukisa said that they are living in fear of being abducted again and being hurt because they kept asking us to show them guns and pangas which they did not have.
“I sustained injuries and the stomach got a problem in my body. I have been on medication since then,” he added.
When contacted on Friday, Brig Gen Lukyamuzi could not comment on the matter saying he was not in position.
He said that he needed time to consult his staff to know the person handling the said complaint and how far with the investigations and promised to return to us after making consultations.
Patrick Kisitu, a family member among the accused parties dismissed the accusations saying that he was also among the people who were being sought by the soldiers.
He explained that the accusations against him and the lawyer (Wasswa) are baseless and stemming from the struggle on who should take care of the family estate.
“I have taken care of the family property for many years and I have been in these battles alone but they are fighting me because of a mere three acre land which I sold and provided the accountability for the money,” Kisitu explained.
He revealed that the arrest is about the Kibanja holder who was denied access but Kisitu could not divulge into the matter.
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Family Accuses State House Land Unit of Wanting to Grab Their Land by Implicating Them in Rebel Allegations, Appeals to President Museveni for Intervention
A family in Katabi Sub County, Entebbe Municipality, is in shock after members were allegedly implicated in rebel activities by officials from the State House Land Protection Unit. In exchange for their freedom, the family has been asked to surrender part of their ancestral land in what they believe is a coordinated land-grabbing scheme involving high-profile security officials, local leaders, and land brokers.
The family, led by the estate administrator, Willy Kisitu, of the late Charles Kisitu Ffulu, claims that on February 26, 2025, armed soldiers, both in uniform and plain clothes, invaded their land at Nkumba – Bbendegere in Katabi Sub County. They arrested land caretaker Ivan Ntege and two of his workers, Paul Mukisa and Abbas Senabulya, accusing them of being involved in rebel activities. They allege that the officials demanded a one-and-a-half-acre plot of land as a condition for their release.
Ntege, who is recovering from injuries sustained during the arrest, described the ordeal, alleging that they were tortured and interrogated under the false pretense of being part of the M23 rebel group. The soldiers reportedly questioned their tribal origins, accused them of being Rwandese, and forced them to sign a sale agreement for the land in exchange for their freedom.
The family members accuse the State House Land Protection Unit officials of opening fake charges related to terrorism and rebellion to facilitate the land grab. They claim that a network of security officials, police officers, and local brokers have begun bringing in pseudo-buyers with forged sale agreements, forcing the family to relinquish their land. When the family attempted to resist, they were arrested and charged with criminal trespass and threatening violence.
The family believes that these acts are part of a larger scheme to fraudulently seize their ancestral land, which has been in their possession for generations. Ntege revealed that they were initially taken to Mengo, Kampala, where they were further interrogated and pressured to sign land sale agreements. The family was later transferred to Kireka SIU, where they were threatened with imprisonment if they refused to comply.
After several days of detention, the family was unexpectedly released without documentation and ordered to return to Mengo on March 21, 2025. Ntege is now calling for intervention from President Museveni, the State House Anti-Corruption Unit, and the Criminal Investigations Directorate (CID) to put an end to the land grab and hold those responsible accountable.
The family also claims that the soldiers are collaborating with a relative, Patrick Kisitu, and a former family lawyer, Fahad Wasswa, who are allegedly working with brokers to seize the land. In response, Patrick Kisitu denied the accusations, insisting that he had been solely responsible for managing the family estate for years and was not involved in any illegal activities.
As the family continues to fight for their rights, they are living in fear of further abductions and violence. The family is appealing for justice, seeking the intervention of President Museveni to prevent the unlawful seizure of their land and protect them from further harassment.
https://hoimapost.co.ug/family-accuses-state-house-land-unit-of-wanting-to-grab-their-land-by-implicating-them-in-rebel-allegations-appeals-to-president-museveni-for-intervention/
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