FITSPA and the UNCDF Launch Code of Conduct to Strengthen Responsible Digital Lending in Uganda


Uganda’s fast-growing fintech sector marked a historic milestone with the launch of the country’s first Digital Lenders Code of Conduct, a self-regulatory framework designed to promote responsible lending, strengthen consumer protection, and unlock capital for the digital credit industry.

The launch, spearheaded by the Financial Technologies Service Providers Association (FITSPA), brought together key regulators, fintech CEOs, and development partners, including officials from the Ministry of Finance’s Microfinance Regulation Department (MRD), Bank of Uganda, UNCDF, and FSD Uganda.

Speaking at the unveiling ceremony held on Wednesday at Protea Hotel, FITSPA Board Chairperson Vincent Tumwijukye said the initiative comes at a critical time, with micro, small, and medium enterprises (MSMEs) heavily relying on digital credit but still facing exclusion.

“MSMEs contribute 20% of our GDP and employ over 90% of the non-farm workforce, yet 70% of them remain without access to affordable credit,” Tumwijukye said. “The people in this room have a unique responsibility to foster fair and responsible lending for an inclusive economy.”

He noted that even as digital lending volumes rose to UGX 3.5 trillion this year, structural imbalances persist.

“Some people borrow at 6%, while others are subjected to rates as high as 120%. That is a structural problem,” he stressed. “This Code of Conduct will help us set standards and empower consumers to choose what is relevant for them.”

Tumwijukye also thanked development partners for supporting the process, including UNCDF, MasterCard Foundation, and the Outbox 10X program.

In a strong endorsement of the initiative, Edith Tusubira, Commissioner of the Microfinance Regulation Department at the Ministry of Finance, said the Code of Conduct will become part of Uganda’s regulatory compliance framework after government review.

“Self-regulation is something we have been encouraging,” she said. “Once we review this Code, it will be integrated into our compliance processes. If you are not there, you will not get a license.”

Tusubira emphasized that the transitional shift from UMRA to MRD aims to streamline oversight and embed technology-driven supervision for digital lenders.

“We have transitioned — stop using UMRA. We are now MRD, and the bus is already moving,” she said. “We leverage technology; there is no reason we should stall.”

She added that the President himself has expressed concerns over irresponsible lending practices.

“His Excellency has been saying: you people, you are not behaving well. Self-regulation will help you to listen.”

Consumer Protection Takes Center Stage

Regulators highlighted several pressing issues the Code seeks to address; including over-indebtedness, data misuse, improper consent handling, and exploitation of financially illiterate borrowers.

Tusubira cautioned lenders against hiding critical terms in complex documentation.

“Do not take these people for granted,” she said. “Someone may not speak English, but they know the difference between 50,000 and 10,000. When complaints come to our desk, we open everything, and we can undo it.”

She referenced cases where properties illegally sold by lenders were reversed by regulators.

“We have undone house sales before. We ordered the deregistration of titles. The law empowers us,” she warned.

“I didn’t see anything on cybersecurity in the Code,” she noted. “Think about how you will protect people’s accounts when hackers can access information even without touching your phone. Technology is overtaking us.”

Tusubira applauded fintechs for expanding access to credit, with mobile money accounts now ten times more common than traditional bank accounts in Uganda. But she stressed that innovation must be complemented by transparency and consumer-first product design.

Meanwhile, the new Code aligns with key national regulations, including: Tier IV Lending Conditions Regulations (2024). Financial Consumer Protection Guidelines (2019). Digital Lending Guidelines (2024)

According to Tusubira, this alignment positions Uganda to build a safer, more trusted, and inclusive digital credit ecosystem.

“This is an important milestone for Uganda,” she said. “It reflects the direction of our technology, our laws, and our commitment to financial inclusion. Let us align ourselves with the national strategy. This Code of Conduct is not just a document, it is a standard that will define the future of digital lending in Uganda.”

FITSPA, Chairperson Tumwijukye, echoed the optimism. “If we rise up to seize this moment, we can unlock the capital and trust needed to transform Uganda’s fintech landscape.”

As Uganda pursues its ambition of becoming a USD 500 billion economy within 15 years under the 10-Fold Growth Strategy, regulators say fintech and digital credit will be central drivers.