If you have ever taken a mobile loan in Uganda—oluwa ku phone—then you know the stress. One minute you need quick money to boost stock, pay school fees, or sort a sudden emergency. The next minute, the loan app is calling your auntie in the village, your boss, even your ex. Some of them even enter your phone like they own it.
But things are changing. Finally.
FITSPA (the Financial Technology Service Providers Association of Uganda) has introduced a new binding Code of Conduct to clean up the digital lending space. And this time, the rules are on your side as a borrower.
For the first time, the industry has agreed on one simple principle: Customer protection comes first.
Before you even borrow lenders must check if you can actually repay
One of the big problems in Uganda’s digital lending boom has been the ease of borrowing. With just a few taps—loan approved. But behind that convenience, many people were sinking deeper into debt.
A lender must now properly check:
How much you earn
Your existing debts
Whether the new loan is realistic for your income
These are real affordability checks, based on regulator-approved debt-to-income ratios. No lender can push you into a loan you clearly cannot manage.
Even your credit limit must match your proven ability to repay.
And if they want to raise it automatically? They must prove you can handle it and get your consent. No more “surprise” increases so they say. Interestingly, I got a surprise increase today. I was not consulted.
Everything must be clear before you click ‘Accept’
How many times have you taken a loan only to realise the charges were hiding somewhere in the fine print?
The Code ends that.
Before you accept any loan, the lender must show you—in plain language:
The full loan amount
What will actually be sent to your mobile money
Interest and all fees
Your repayment schedule
Penalties
Cooling-off terms (just in case you change your mind)
How to report complaints
They must also tell you that your loan information will be sent to licensed credit reference bureaus.
No more secrets. No more “surprise deductions.”
Your phone is yours. Not your lender’s.
This is the part that made many Ugandans suffer silently.
Some digital lenders were accessing phonebooks, photos, WhatsApp groups—things that have nothing to do with your loan. And when someone delayed repaying, they would call relatives, bosses, neighbours, even church elders.
The new Code says ENOUGH.
From now on:
They can only collect the data necessary for your loan
Accessing your contacts, photos, or files is banned
Sharing your data with third parties is prohibited
Your privacy must be respected
Your phone belongs to you—not the lender.
Recoveries must respect your dignity
If you have ever received an embarrassing call from a debt collector, the new rules are written for you.
The Code bans:
Threats and intimidation
Abuse or insults
Pretending to be police or government
Calling at odd hours
Public shaming—no calling your boss or family
A lender must use reputable agents, follow approved recovery policies, and treat you with dignity. And before they take legal action, they must send a proper written notice.
Advertising must be honest with no manipulative tricks
Some apps have been convincing people to borrow recklessly. Extra cash! Instant approval! Zero risk!
But the hidden terms were dangerous.
Under the new Code, advertising must be transparent. Lenders cannot mislead you, conceal key information, or pressure you into borrowing. And you should have a clear option to opt out of promotional messages.
Why this matters
Uganda’s digital lending ecosystem has been growing fast—too fast, sometimes. For many small business owners, these loans are a lifeline. But without rules, borrowers were left exposed.
This new Code is a reset.
A chance to rebuild trust.
A chance to make digital credit work for you, not against you.
It won’t solve everything overnight, progress is slow but it’s a big step forward.
Borrowing should not come with shame, fear, or harassment.
And now, it no longer has to.
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