President Yoweri Kaguta Museveni has directed the Microfinance Support Centre (MSC) to provide loans at an annual interest rate of 8% to vendors in Kampala’s Kalerwe and St. Balikuddembe (Owino) markets under a new government initiative dubbed the Katale Loan.
The pilot scheme, aimed at economically empowering low-income earners, is expected to benefit over 10,000 vendors in 24 sub-markets in Kalerwe and thousands more at Owino. If successful, the initiative will expand to other markets across the central region.
Speaking during a stakeholder meeting at Fairway Hotel on Tuesday, May 20, 2025, Moses Byaruhanga, the Senior Presidential Advisor In-charge of Political Mobilization, said the intervention seeks to protect vendors from predatory moneylenders.
“We have been told that access to finance is not progressing very well, yet we hear that so many moneylenders are profiting from these markets,” Byaruhanga said. “We want you to be able to access loans with fewer hindrances and organise yourselves in small groups of five to ten vendors.”
Byaruhanga condemned the continued practice of confiscating national identity cards as loan collateral. “We have also been told that moneylenders are still taking your IDs as security to access loans,” he added.
Under the Katale Loan, MSC will deposit the funds directly onto beneficiaries’ mobile money accounts. Borrowers will not need to provide physical collateral, but must belong to verified vendor groups.
Byaruhanga acknowledged vendors’ previous resistance to market upgrades due to fears of increased rent or land ownership changes. He noted that the government only improved markets that accepted support, while others remain in poor conditions.
The meeting attracted over 200 attendees, including women vendors, market leaders, local council officials, and Kampala Capital City Authority (KCCA) representatives.
Julius Kasirye, Manager of Commercial Services at KCCA, emphasized the importance of the initiative's success. “If this Katale loan fails in these two markets, it will be a setback for the other markets that are also in line to benefit from this opportunity,” he said.
KCCA’s Deputy Director of Production and Marketing, David Musunga, acknowledged concerns about poor sanitation in public toilets and pledged support to improve conditions. “We shall work together with MSC and provide the necessary support for better service delivery,” Musunga said.
Lotah Arimureeba, a Client Relationship Officer at MSC, said the program targets small-scale entrepreneurs, including roadside vendors, stall operators, women, and single mothers.
“We have realised that sometimes market vendors find it hard to access funding. So, through the government, we are now able to provide you financing as MSC,” Arimureeba said. She clarified that MSC is a non-partisan institution focused solely on development.
Adults aged 18 to 75 are eligible for the loan. Requirements include a national ID, NIN, a bank account, and endorsement from a market representative. Successful applicants will receive funds within two weeks.
Dalawusi Kibuuka, Vice Chairperson of Ddembe Market in Kalerwe, promised to educate fellow vendors about the benefits of the loan. “We shall mobilize our people and help them appreciate this opportunity,” he said.
Winnie Nalwoga from Nyanja zone in Owino urged KCCA not to complicate the loan process. “It could kill our morale and push us back to moneylenders,” she warned.
Badru Lutalo, a market leader from Owino, requested government support to establish an administrative office for better coordination.
The Katale Loan initiative signals a shift in government efforts to uplift informal market traders through accessible, affordable, and secure financial services.