Kadaga warns women against taking loans on behalf of their spouses

Ms Kadaga revealed that several female MPs are struggling with substantial bank loans they took out on behalf of their husbands.

The First Deputy Prime Minister and Minister for East African Community Affairs, Rebecca Kadaga, has voiced serious concerns about the financial difficulties facing some female Members of Parliament (MPs).

Speaking at the launch of the World Bank-funded Generating Growth Opportunities and Productivity for Women Enterprises (GROW) project in the Busoga sub-region, Ms Kadaga revealed that several female MPs are struggling with substantial bank loans they took out on behalf of their husbands.

Ms Kadaga, a member of the Uganda Women Parliamentary Association (UWOPA) and former Speaker of Parliament, disclosed that many female MPs have approached her seeking financial assistance to service loans their husbands have failed to repay.

"In Parliament, I receive many female MPs seeking bailouts for loans their husbands cannot pay. They often tell me, 'Mama, my husband who sponsored me during elections asked me to acquire a loan on his behalf, but he has failed to pay, and now my vehicle is being repossessed,'" Kadaga said.

She used the platform to warn women, particularly those benefiting from the GROW project, against taking loans on behalf of their spouses.

"If leaders at the level of Members of Parliament can be hoodwinked by their husbands, how about those of you at the lower level? Please, do not take GROW Project loans on behalf of your husbands," she cautioned.

The GROW project, which aims to empower women entrepreneurs, is being implemented through several banks, including Stanbic, Post Bank, Equity, dfcu, Centenary Bank, and Finance Trust Bank.

John Ssengendo, the national projeccoordinator, encouraged women to embrace the project, highlighting that it offers loans ranging from Shs4 million to Shs200 million at an attractive annual interest rate of 10%.

Ssengendo also warned the participating banks against imposing conditions beyond those agreed upon in the project's memorandum of understanding with the government.

He emphasized that banks could be excluded from the project if they fail to meet loan disbursement targets due to unnecessary conditions.

Kadaga further urged banks to establish dedicated service desks for the GROW project to ensure that women entrepreneurs do not face delays or difficulties in accessing these loans.

"We don't want our women to be stranded in queues at your centres; you must have a desk specifically for this project," she stressed.

Edith Tibenkana, Chairperson of the Women Council in Jinja City, raised concerns over some banks requiring women entrepreneurs to be licensed by the Uganda Registration and Services Bureau before accessing GROW project funds.

Tibenkana noted that many women-run businesses are not formally registered, and such requirements could exclude a significant number of potential beneficiaries.

In response, Richard Gulume, the Resident City Commissioner of Jinja, encouraged women to take advantage of the loans, pointing out that the GROW project offers one of the lowest interest rates available.

"Apart from the low interest rate, women entrepreneurs will deal directly with the banks, avoiding the bureaucracy associated with other projects that require endorsements from local government officials," Gulume said.

The GROW project launch highlights the government's commitment to supporting women entrepreneurs while underscoring the importance of financial independence and responsible borrowing practices among women leaders in Uganda.

The World Bank-funded project, worth Shs803 billion, aims to support established women-led businesses.