FITSPA, UNCDF Convene Stakeholders to Validate Sector Priorities for Responsible Digital Lending

On 21st May 2026, the Financial Technology Service Providers’ Association (FITSPA), through the FinWise & FinTalks Sector Forum, convened regulators, development partners, digital lenders, policymakers, and ecosystem stakeholders at Protea Hotel, Kololo, for a high-level Post-Benchmarking Visit Policy Roundtable under the theme: “Validating Sector Priorities for Digital Lending in Uganda.”

The engagement was organized in partnership with the United Nations Capital Development Fund (UNCDF) under the 10X Programme, implemented by Outbox Uganda, Refactory Academy, UNCDF, and Women in Technology Uganda, with support from the Mastercard Foundation.

The roundtable built on insights generated from a Digital Lending Benchmarking Visit to Kenya conducted from March 30 to April 1, 2026, in which delegates from Uganda’s digital credit ecosystem traveled to Nairobi to examine regulatory frameworks, supervisory approaches, consumer protection interventions, and industry coordination mechanisms shaping Kenya’s digital lending market.

MSMEs account for over 20% of Uganda’s GDP and employ more than 90% of the non-farm workforce, yet 70% face unmet credit needs. Access to finance remains the main challenge for 31% of micro, 21% of small, and 10% of medium-sized businesses. While digital credit offers significant potential, issues related to consumer protection, market conduct, and regulation must be addressed to ensure sector sustainability.

FITSPA, in partnership with UNCDF, is working through broader efforts to promote a responsible digital lending industry in Uganda. The visit was part of these broader efforts. Last year, under the same initiative, FITSPA launched an Industry Code of Conduct that lays the foundation for ongoing monitoring, industry learning, and continuous improvement as digital lending evolves. The launch saw Uganda join a growing list of markets taking proactive steps to address risks associated with digital credit, from predatory lending to the misuse of personal data.

Responsible Digital Lending

Opening the engagement, FITSPA Vice Chairperson Doreen Lukandwa described the roundtable as an important step toward shaping the future of responsible digital lending in Uganda. “As an industry, we must recognize that sustainable growth cannot happen without trust. A market that lacks consumer confidence cannot grow sustainably, regardless of how innovative or accessible its products may be,” she noted while reflecting on the rapid growth of Uganda’s digital credit sector.

According to Doreen, one of the key lessons from Kenya was the importance of adaptive regulation and continuous engagement between regulators and industry players. She further observed that “regulatory uncertainty remains a key barrier to investment and innovation,” emphasizing the need for practical and forward-looking policy approaches that can accommodate evolving financial models.

Building Consensus Around Policy Reform

Speaking during the roundtable, Edith Namugga Tusuubira, Commissioner at the Microfinance Regulation Department under the Ministry of Finance, Planning and Economic Development, commended FITSPA for creating a platform that brings together ecosystem stakeholders to engage on digital lending policy reform.

“The sector is now at a critical point where stakeholders must bridge the gap between the possible and the practical,” she stated, emphasizing the importance of building consensus around the future direction of Uganda’s digital lending ecosystem.

Edith observed that digital financial services are no longer merely channels of service delivery, but have become foundational infrastructure for modern economies. “Digital is no longer just a channel, but fundamental infrastructure upon which the modern economy runs,” she said.

She further noted that regulators must increasingly position themselves as ecosystem architects rather than gatekeepers, calling for stronger collaboration between regulators, innovators, and development partners. Reflecting on lessons from Kenya, Edith highlighted the shift from rigid regulatory compliance models toward more agile approaches such as regulatory sandboxes.

She also emphasized the growing importance of data governance and sovereignty in digital financial systems. “Data is the lifeblood of the new economy,” she noted, describing data governance as central to the future of responsible digital finance.

Lessons from the Kenya Benchmarking Visit

A delegates’ panel discussion explored key learnings from the Kenya benchmarking visit. The panel featured representatives from the Ministry of Finance, the Personal Data Protection Office (PDPO), UNCDF, and private sector players, including 4G Capital and Unifi.

Discussions focused on digital credit regulation, supervision approaches, consumer protection, market conduct, and data governance. Participants highlighted Kenya’s shift toward broader oversight of non-deposit-taking credit providers and discussed the implications for emerging financial models such as embedded finance, buy-now-pay-later services, and digital-first lending products.

Panelists emphasized that effective regulation requires continuous engagement between regulators, industry players, and consumers, supported by market intelligence and operational insights. The discussion also highlighted growing concerns around data privacy violations, misuse of consumer information, and the need for stronger institutional capacity for data protection oversight.

Advancing Ecosystem Collaboration

In his remarks, Richard Zulu, Team Principal at Outbox, reaffirmed the commitment of partners under the 10X Programme to continue supporting ecosystem coordination, policy dialogue, and capacity building within Uganda’s digital economy.

Richard emphasized that the discussions should help answer important questions around how digital credit can responsibly support financing for small businesses and underserved communities. “The insights generated from both the Kenya benchmarking visit and today’s validation session mark an important step toward building a coherent, evidence-based policy framework for Uganda’s digital lending sector,” he stated.

A Call for Responsible Innovation

Closing the roundtable, Kenneth Muhangi, FITSPA Board Director and Partner at KTA Advocates, emphasized that Uganda’s digital credit providers operate within a unique and influential industry capable of shaping policy and supporting market growth.

Kenneth urged industry players not to view regulation as punitive, but rather as an important framework for strengthening trust, protecting consumers, and supporting sustainable sector growth. He reaffirmed FITSPA’s commitment to advocating for a responsible digital lending market and called upon all stakeholders to remain responsible in their innovation and operational practices as Uganda’s fintech ecosystem continues to evolve.

Toward a Sector Policy Position Paper

The discussions and stakeholder engagements from the roundtable will contribute toward the development of a Sector Policy Position Paper to be submitted to Government as part of ongoing efforts to strengthen Uganda’s digital lending environment.

The engagement reinforced the importance of collaboration, regulatory clarity, consumer protection, and responsible innovation in building a sustainable and inclusive digital financial ecosystem for Uganda’s future.