The business community in Wandegeya and surrounding areas is set to benefit from faster access to loans and other financial solutions following the official opening of a new Janakee Holdings Ltd branch.
The office was officially unveiled on Friday at Musa Kasule Commercial Complex in Wandegeya, with company officials saying the expansion is aimed at bringing quick and reliable financial services closer to businesses and individuals.
Speaking on the sidelines of the event, the President of the Money Lenders Association of Uganda, Jonan Kandwanaho, revealed that the association had taken the government to the Commercial Court over the 2.8 percent monthly lending interest rate cap imposed on licensed money lenders.
Kandwanaho argued that the cap unfairly targets money lenders while exempting other financial service providers such as commercial banks, SACCOs and regulated deposit-taking institutions.
He further noted that, unlike other financial institutions that benefit from government support and funding initiatives, money lenders rely entirely on privately sourced capital, making their operations more expensive and exposing them to greater financial risks.
According to Kandwanaho, the current interest rate cap has forced many operators out of business due to the high cost of operations and increasing loan defaults.
He said the association wants the court to either lift the 2.8 percent cap and allow market forces to determine lending rates in line with Uganda’s free market economy, or raise the ceiling to five percent per month. “We are optimistic that the court will deliver a fair ruling that allows money lenders to operate competitively while remaining sustainable,” Kandwanaho said.
He also said the association is working to improve the industry’s image by identifying and exposing fraudulent money lenders involved in property-grabbing and other illegal practices.
According to Kandwanaho, Uganda has more than 1,500 practising money lenders, but only about 300 are registered members of the association. He pledged continued efforts to ensure illegal operators are prosecuted for exploiting unsuspecting members of the public.
Janakee Holdings Ltd Operations Manager, Shivan Arimpa, said the company currently operates branches in Kabalagala, Mulago, Wandegeya and its headquarters in Ntinda.
Arimpa said the company provides loans ranging from Shs2 million to Shs300 million, with acceptable collateral including genuine land titles or vehicle logbooks registered in the applicant’s name.
“As a Tier Four financial service provider, we are bridging the gap left by conventional banks, which can sometimes take longer to process loans. We are able to process eligible loan applications within 12 hours, enabling clients to respond quickly to business opportunities and financial emergencies,” Arimpa said.
He added that the company’s expansion reflects its commitment to increasing access to timely financial services for entrepreneurs and businesses across Kampala.
