President Museveni Introduces Katale Loan Scheme for Kampala Market Vendors
Market vendors in Kalerwe and St. Balikuddembe (Owino) are set to benefit from a new government-backed financing initiative dubbed the Katale loan, aimed at supporting low-income entrepreneurs. The scheme, which features an annual interest rate of just 8%, is being managed by the Microfinance Support Centre (MSC) and was launched following a directive by President Yoweri Museveni.
Pilot Project Targets Over 10,000 Beneficiaries
The pilot phase of the Katale loan targets more than 10,000 traders across 24 sub-markets in Kalerwe, with expansion plans contingent on the success of the program in Kampala.
At a stakeholder meeting held at Fairway Hotel in Kampala, Senior Presidential Advisor Moses Byaruhanga explained the program’s goal: to offer a safe and affordable alternative to exploitative moneylenders. He condemned reports of lenders seizing clients’ national ID cards—a practice that is now illegal.
Byaruhanga emphasized the importance of traders forming small borrowing groups of five to ten members, which will act as internal guarantors. No collateral will be required, and approved loan amounts will be sent directly to vendors via mobile money.
Concerns and Clarifications
Addressing past skepticism from vendors about government efforts to upgrade market facilities, Byaruhanga said mistrust had stalled several development projects. Some vendors feared increased rent or potential land loss after infrastructure improvements.
Only cooperative markets benefited from upgrades, while others still operate in poor conditions. Byaruhanga urged vendors to embrace this new program, free from political interference.
Support from Market Leaders and KCCA
The event, attended by over 200 participants, including KCCA officials, women traders, and local leaders, was marked by optimism. Market representatives welcomed the initiative, with Ddembe Market Vice Chairperson Dalawusi Kibuuka pledging to mobilize fellow traders.
Winnie Nalwoga from Owino Market urged KCCA to avoid bureaucratic hurdles that could discourage participation and force vendors back to loan sharks.
Dr. David Musunga, Deputy Director for Production and Marketing at KCCA, acknowledged sanitation challenges in the markets and promised continued support. Julius Kasirye, KCCA’s Commercial Services Manager, emphasized that Kalerwe and Owino were chosen for their prominence—and that failure here would affect rollout elsewhere.
Eligibility and Disbursement Process
According to MSC officials, eligible applicants must be aged 18–75, have a national ID and NIN, and belong to a verified vendor group. Funds will be disbursed within two weeks of approval and are not politically affiliated, clarified MSC Client Relationship Officer Lotah Arimureeba.
The loan scheme targets women, single mothers, roadside vendors, and small business owners, providing a long-awaited financial lifeline for informal traders in the capital.
