Parliament Orders Arrests Over Microfinance Support Centre Loan Write-Offs

Kampala, August 25, 2026 - Parliament ordered action against top Microfinance Support Centre officials as scrutiny intensified over Shs63.57 billion in written-off loans, a governance issue affecting a state-backed lender central to Uganda's small-business financing agenda.

The committee demanded explanations on who received the funds and why the loans were written off. Lawmakers also raised concern after the centre discovered that Kurbstone Investments, a company with which it was engaged in arbitration, had been wound up nearly a year earlier.

The action followed complaints by a senior official alleging wrongdoing at the institution. The case adds pressure for tighter oversight of public finance vehicles intended to support microenterprises and low-income borrowers.

The outcome will matter for confidence in government-linked credit schemes, especially as Uganda seeks to expand access to finance while managing public-sector accountability risks.