KAMPALA, UGANDA — A distressed borrower has filed a powerful petition with the Minister of Finance, Planning and Economic Development, Matia Kasaija, alleging a wide range of predatory lending practices by Fincredit Uganda Ltd. and other car loan companies. The petitioner, Daphine Batwiiba Inho, claims to be a victim of what she terms “car loan abuse under simulated sales agreements” and is seeking an immediate audit of Fincredit’s financial activities.
In a letter dated Sept. 22, 2025, Inho paints a bleak picture of the lending process. She alleges she was made to sign documents she did not fully understand, including a car sale agreement and a Power of Attorney, before any money was disbursed. She later discovered that her loan, which amounted to approximately UGX 4.2 million, came with a repayment plan of nearly UGX 6.8 million in just six months. According to her calculations, this translates to an annualized interest rate of more than 100%, far exceeding the 33.6% legal interest rate cap set by the minister’s office.
The petition outlines several other alleged abuses, including a hidden “unexplained extra installment” that borrowers are not told about during the loan application process. This charge, Inho claims, only appears after a vehicle’s tracker is installed and the asset is seized by the lender.
Inho also raises serious questions about the vehicle valuation process. She alleges that lenders do not provide borrowers with a copy of the valuation report and that the individuals performing the valuations are “untrained mechanics from downtown with only a Senior Four education” who are never formally introduced or verified.
The petitioner, who also mentioned she is “too broke to hire a lawyer,” said her fears are amplified by what she described as “ex parte rulings” from magistrates, which she claims allow lenders to repossess cars without a borrower ever being heard. She accuses lenders of using “ruthless court bailiffs” who seize vehicles under the pretense that the car was stolen.
In her letter to the minister, Inho stated these practices are not limited to Fincredit but are common among car lenders like Platinum Credit and Mogo Uganda. She concluded her plea by saying she is “not the only one” suffering silently and asked the minister to step in and investigate why these companies appear to operate “above the interest cap” and repossess vehicles through what she calls “disguised sales agreements.”
