The Government of Uganda has taken steps to further ease the law that prohibits lenders from confiscating the national identity cards of borrowers.
In a report presented to Parliament, Deputy Interior Minister Gen David Muhoozi highlighted that confiscating someone’s identity card is now recognized as a serious offense, punishable by up to three years in prison, a fine of UGX 96 million, or the revocation of the lender’s operating license.
The report emphasizes that every Ugandan has the right to possess a national identity card, which serves as proof of citizenship. The identity card is also crucial for accessing essential government services, traveling, and other day-to-day activities.
To address this illegal practice, the government plans to raise awareness among citizens about their right to keep their identity cards. Additionally, they are introducing an electronic ID (e-ID), designed to be difficult to confiscate, as part of a broader effort to protect citizens from such exploitation.
Many Ugandans have expressed concerns over lenders withholding their identity cards as collateral for loans, often preventing them from accessing services that require a national ID. The government’s measures aim to ensure that borrowers are not deprived of their right to retain their identity cards, while holding lenders accountable for violating this law.
